21632 Chapter Notes - Chapter 5: Organizational Culture, Path Dependence, Root Mean Square
Culture and Strategy I
Inļ¬uence of history on strategy:
ā¢History and managersā experience - managementās impact on strategy is determined but heir
individual, occupational history
ā¢Learning from the past - historic trends and cycles allow for prediction of similar circumstances
ā¢Innovation based on historic capabilities - ļ¬rms will build on their existing technologies and
environment
ā¢History as legitimisation - history may be a resource to legitimise strategies of strategic change
Path dependency - early events and decisions establish āpolicy pathsā that have lasting effects on
subsequent events and decisions e.g. tv evolving form similar radio technology.
Impacts of path dependency:
-Building strategy around path-dependent capabilities
-Path creation
-Management style
Forms of historical analysis:
ā¢Chronological - analysis of a chronology of key events illustrating changes to the organisationās
environment
ā¢Cyclical analysis - analysis of economic and industrial cycles i.e. periods of high mergers and
acquisitions
ā¢Key event and decisions - analysis of successes and failures resulting from signiļ¬ant events or
executive judgement
ā¢Historical narratives - analysing individual perspectives and suggestions
Organisational culture - taken-for-granted assumptions and behaviours that make sense of
peopleās organisational context.
Cultural frames of reference on the individual:
-National or regional frame
-Organisation ļ¬eld
-Function or division frame
-Organisational frame
Geographically based cultures - organisations culture based on national culture
Organisational ļ¬eld - community of organisations that interact more frequently with one another
than with those outside the ļ¬eld and that have developed a shared meaning system.
Recipe - set of assumptions, norms and routines held in common within an organisational ļ¬eld
about the appropriate purposes and strategies of ļ¬eld members.
Legitimacy - concerned with meeting the expectations with an organisation ļ¬eld in terms of
assumptions, behaviours and strategies.
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Document Summary
Path dependency - early events and decisions establish policy paths" that have lasting effects on subsequent events and decisions e. g. tv evolving form similar radio technology. Organisational culture - taken-for-granted assumptions and behaviours that make sense of people"s organisational context. Geographically based cultures - organisations culture based on national culture. Organisational eld - community of organisations that interact more frequently with one another than with those outside the eld and that have developed a shared meaning system. Recipe - set of assumptions, norms and routines held in common within an organisational eld about the appropriate purposes and strategies of eld members. Legitimacy - concerned with meeting the expectations with an organisation eld in terms of assumptions, behaviours and strategies. Organisational subcultures - consist of the core values of the dominant culture and additional values unique to the subculture. Cultural web - behavioural, physical and symbolic manifestations of a culture that inform and are informed by the layers of culture.
