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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
The case study company, RACC Club, was founded in 1906 as a sports association
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This document was uploaded on 02/26/2014 for the course BUSINESS Human reso at Silliman Institute.
- Spring '14