Changing the strategy formation process in a service cooperative

Purpose – The purpose of this paper is to concern the strategic changes a firm needs to incorporate in order to deliver a complex service such as providing assistance to the socially disadvantaged. The paper seeks to analyze the development of such a process considering the ability of managers to exploit resources and foster new opportunities for the firm. Design/methodology/approach – The qualitative methodology applied is that of a case study. The organization analyzed was a service cooperative. A semi‐structured questionnaire was used to gather the information along with documents and additional information thereafter, thus facilitating the triangulation process. Findings – Non‐profit service organizations that provide assistance services for the disadvantaged population have to compete in a complex and turbulent environment. The strategic process adopted by those organizations requires more participation and involvement from organizational members; but, simultaneously, this process should be more rational and planned. The strategic content involves the adoption of a hybrid strategy. The function of managers that act as intrapreneurs exploiting existing resources and capabilities (through human resource practices, such as training or reward systems) and promoting change plays an essential role. Decentralization and socialization are necessary for the successful development of those strategic changes. Originality/value – The paper draws implications for service organizations suggesting, as the main strategic changes for improving competitiveness, the establishment of incentive regulation systems relevant to job characteristics and the establishment of a larger number of cooperation agreements and cooperation networks.