Integrating the Strategy Formation Process:: An International Perspective

Strategy can emerge within a decentralized decision structure that gives managers autonomy to take responsive actions while overall strategic direction is considered within a strategic planning process. Both strategy-making modes can be conceived as complementary elements of the complex strategy formation process. This study defines the concept of decentralized strategic emergence around the decision autonomy of managers and hypothesizes on the positive interaction between dispersed managerial actions and central planning activities. An empirical study illustrates the importance of both elements in an integrative strategy formation process particularly for firms operating in the turbulence of international environments. The findings may point to essential strategic management capabilities needed to exploit opportunities in the European internal market.