1. Characteristics
As discussed above, strategies do not always develop through homogeneous or pure types of strategic processes (purely deliberate processes or purely emergent processes). In fact, strategies are often formed from processes composed of deliberate and emergent actions. Thus, for example:
– A strategy may initially arise emergently (as a consequence of top-down, bottom-up or democratic type emergent actions [1]) and then develop further in a deliberate way.
– A strategy can be formed through the development of a strategic process that contains, among others, sequences of actions that arise emergently and continue to be developed in a deliberate manner.
In the above two cases, the processes or sequences of actions contained within a given process, which arise emergently and continue to develop deliberately, usually originate from the occurrence of unexpected events in the environment or organization, to which the company’s top management responds.
– A strategy can initially be generated deliberately and thereafter developed further in an emergent manner.
– A strategy can be formed from the development of a stream of deliberate and emergent actions that is partially or totally motivated and/or framed by broad guidelines for action [2] by the company’s top management (strategic visions, personal interests, assumptions and beliefs, general criteria, etc.). Within this type of strategic processes, the following specific case examples can be highlighted:
- A stream of deliberate and emergent actions framed within an interest, belief, assumption or strategic vision of the company’s top management.
- A stream of deliberate and emergent actions the development of which is motivated and/or framed by a broad action guideline previously established by the company’s top management.
A singular case of this type is observed in companies immersed in complex and dynamic environments, that seek to innovate in their strategy, and in which top management is aware that new strategic learning, new strategic ideas or initiatives, and/or new business opportunities may arise because of promoting the development of courses of action on ‘novel topics’ [3], deploying streams of actions ‘that do not quite know where they are going’. In general, these processes usually take the form of deliberate and emergent streams of actions motivated and framed by broad action guidelines (novel topics of interest) previously established by top management. Within this type of strategic process is also the casuistry of launching low-risk experiments into the market in order to maximize the organization’s strategic learning regarding the feasibility and detailed form of possible new strategies.
- Emergent actions through which a new strategic vision arises for the company’s top management, which is subsequently implemented through a stream of deliberate and emergent actions motivated and framed by this vision.
- A stream of bottom-up emergent actions framed within a broad action guide previously established by the company’s top management. In this regard, several authors have found the following empirical evidence:
- ‘Umbrella strategy’ (Mintzberg and Waters, 1985). This strategic process is characterized by leaders establishing general guidelines for the organization’s behavior (defining the boundaries), and then leaving other actors to maneuver within them. In other words, they establish a series of umbrellas under which they expect organizational actions to fall. Thus, leadership allows strategies to emerge within boundaries it has previously established.
- ‘Strategy as simple rules’ (Eisenhardt and Sull, 2001) – Case of the ‘bottom-up’ strategic process. This type of strategic process has been observed in companies immersed in highly dynamic environments where, according to these authors, it is essential to have an entrepreneurial attitude and to quickly seize market opportunities that arise by means of a series of key processes and simple rules. In this strategic process the leader or the top management chooses the key processes on which the organization will focus its attention, and establishes the simple rules that will guide the managers and/or line managers and/or employees (depending on the case in question) in selecting and taking advantage of the opportunities that arise within those key processes. By focusing on certain key processes, and following certain simple rules, emerging opportunities are quickly sifted, and appropriate actions are taken to exploit those opportunities that are attractive based on those criteria, thus achieving competitive advantages in the short term. From these streams of actions, patterns of behavior (emergent strategies) can be formed to achieve competitive advantages in the longer term. This strategic process, therefore, is composed of a series of streams of bottom-up emergent actions framed within the broad action guidelines (key processes and simple rules) that have been previously established by the company’s leader or top management.
- ‘Planned emergence’ (Grant, 2003). This type of strategic process has recently been observed in large companies using strategic planning systems. In this process, corporate managers establish the overall framework or boundaries (general strategic directions, broad guidelines for action, general performance objectives, etc.) within which strategies emerge from the interaction of business unit managers with the environment. These strategies are then incorporated into the strategic plan and thereafter implemented in a deliberate manner.
– A strategy can be formed as a result of the development of any other type of deliberate and emergent stream of actions other than those discussed above.
2. Context
Strategic processes composed of deliberate and emergent actions, containing emergent-type actions, occur in the same context as emergent strategic processes, that is to say, in companies immersed in turbulent or dynamic environments, since such emergent actions normally arise from the occurrence of unexpected events (from the environment and/or from within the organization) to which the company’s top management responds.
As with emergent strategic processes, the following can be considered with respect to the different types of emergent actions that may occur:
– Top-down emergent actions will occur in all types of organizations immersed in turbulent or dynamic environments since, in any case, it is the company’s top management that is responsible for ensuring that the organization responds to unexpected events as they occur.
– Bottom-up and democratic type emergent actions will occur primarily in large, complex, decentralized companies, that are immersed in turbulent or dynamic environments and, above all, always in organizations with participative management styles and open and tolerant organizational cultures.
[1] The existence of this type of emergent strategic actions (‘democratic’ type emergent actions) has recently been considered in this field of study, being defined (theoretically) and verified (empirically) for the first time during the research carried out in his doctoral thesis by Roch (2016 and 2019). This type of strategic actions is also described in the book: “The strategic process of the firm: Theory and cases” (Roch, 2024).
[2] A stream of actions is framed by or within an action guideline when those actions are consistent or aligned with that action guideline.
[3] The fact of promoting action on ‘novel topics’ as a source of rapid knowledge creation and, therefore, strategy creation, has been found by Bueno and Salmador (2005) to be a practice carried out by business managers in rapidly changing environments.
If you are interested in going deeper into the strategic process, allow me to recommend you: - Book: "The strategic process of the firm: Theory and cases" (Roch, 2024). - Courses and consulting program on the strategic process.
