DYNAMIC INTERACTION BETWEEN STRATEGY AND TECHNOLOGY

There are at least three perspectives on the interaction between strategy and technology. The first focuses on the effect of current technology on current strategy of the firm, the second on the effect of current strategy on future technology, and the third on the effect of current technology on future strategy. The essence of these effects are respectively: strategy capitalizes on technology, strategy cultivates technology, and technology drives cognition of strategy. As we go from the first to the third, it becomes less conventional, less oriented to economics, more development-oriented and more process and organization-oriented. Past strategy research has been dominated by the first perspective and thus has been too narrow and static. This paper tries to rectify this imbalance.