There are several reasons for this first the nature

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Unformatted text preview: kes the use of a case study particularly appropriate. There are several reasons for this. First, the nature of the strategy-making phenomenon, as a multilevel and organization-wide process, lends itself to fine-grained inquiry rather than quantitative measurement (Chakravarthy and Doz, 1992). Second, in view of the subject matter, understanding the dynamics in a single setting seemed necessary. Third, the use of exploratory case research enables consideration of new ideas and propositions to be applied in further research (Yin, 1994). We have used the concepts of interplay between top management and lower managerial levels as well as induced and autonomous behavior as ingredients for an a priori framework to approach the case study. As indicated by Eisenhardt (1989) and Yin (1994), we relied on a preliminary framework based on existing theory and research on the strategymaking process. This framework is presented schematically in Figure 1. Several methodological reasons support the use of an ex ante framework. The first reason is that this approach allows for iterative contrasting of theory against evidence, leading towards analytic generalization. As a result, the framework we devise is open-ended to allow promising new concepts to be noticed. The second reason is that using this approach prevents ongoing research from diverging from the original intention. It provides direction in determining what data to collect and what scheme to use to analyze them. We enforced concreteness by focusing on our research question: how is the top and middle management interplay resolved to translate strategy into managerial action? The company chosen for this study, RACC Club, has exceptional features and appears to be a revelatory case. First, it is a multi-business organization, yet all business units share the same domestic customer. Multi-business is especially valuable to observe managers’ participation in the strategy-making process, given the autonomy and specific knowledge they have of their business units. Second, the company uses well-defined strategic initiatives to promote change. Third, the CEO guides strategy formation1 by means of an objective function. Fourth, the nature of the institution as a multi-service provider forces the company to operate in different markets, providing diversity of contexts and different levels of analysis. This type of complexity usually tends to be found in larger organizations, yet in this case the situation is replicated on a smaller scale. Fifth, the company has recently implemented a singular approach to strategy formulation which diverges from the traditional practice of strategic planning and promotes participation by organizational members. Finally, the access allowed at the research site was substantial; the researchers were given ample access to company documents, decision-making procedures, and records on strategic initiatives. Research Setting The case study company, RACC Club, was founded in 1906 as a sports association in...
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This document was uploaded on 02/26/2014 for the course BUSINESS Human reso at Silliman Institute.

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