Adaptive strategy making: The effects of emergent and intended strategy modes

It is generally recognized that strategies can evolve from both intended and emergent actions and this understanding gradually permeates the strategy literature. Yet, the two phenomena are rarely analyzed as complementary processes and, if so, the analyses are usually conducted around case-based studies. To circumvent this, this paper develops an adaptive strategy-making model and incorporates measures of emergent and intended strategy modes to underpin quantitative analysis. Structural equation modeling applied on data from 185 business entities then shows that emergence fostered by autonomous and participatory strategy-making facilitates adaptive behavior, which in turn leads to higher performance outcomes. However, performance is enhanced further when the adaptive initiatives are integrated through strategic planning. These findings indicate that emergence is an essential driver of performance but is more effective if mediated by planning activities. This result has important implications for strategy research and strategic management practice. European Management Review (2009) 6, 94-106. doi:10.1057/emr.2009.7