Choice Interactions and Business Strategy
Harvard University - Strategy Unit
University of Pennsylvania - Management Department
Strategy Unit Working Paper No. 01-012; Harvard Business School Working Paper No. 01-012
Strategists have tended to explain sustained performance differences across firms in terms of two types of interactions among choices: cross-sectional interactions and longitudinal ones. We explore the interplay between these two sorts of forces first in a qualitative manner drawing on case of the case of the Vanguard Mutual Fund. We then develop a graph-theoretic generalization of the NK model of Kaufman (1993) in order to examine these questions in a more structured manner. We use this structure to examine, through simulation, how fully articulated a strategy or set of policy choices must be to achieve a high level of performance, and how feasible it is to offset past strategic mistakes through tactical adjustments (instead of alignment). Our analysis highlights the role of asymmetry in the interaction of strategic choices and in particular the degree to which choices vary in terms of being influential, contingent, or autonomous from other choices.
Number of Pages in PDF File: 35working papers series
Date posted: December 28, 2002
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo3 in 0.735 seconds