Strategy and the Competitive Environment

Abstract

The previous chapter described the relationship between strategy and the organisation of partnerships. The contingency model indicated that organisations vary according to their internal politics and conditions in the external environment. In regional economic development, external factors and network dynamics therefore influence partnership structures and city government strategies to produce complex and varied organisational configurations. This chapter concentrates on some major risky and unpredictable external economic environmental factors that influence public and corporate strategies and encourage public and private organisations to collaborate. The case studies in subsequent chapters cover the real workings of partnerships. This chapter headlines the economic contingencies that influence policy makers who formulate strategies. Together with social and political factors, these determine the issues that will be addressed by strategy makers. The chapter views economic variables that generally make life difficult for strategy makers and lead them constantly to revise their commitments, expectations, and ways of working. Consequently, strategies often count for less than garbage-can politics (Kouzmin and Jarman, 1989).Then, strategy is over-ridden by the short term expediency of politicians and public policy makers.