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Strategy as guided evolution

Author: Ghoshal, Sumantra ; Lovas, Bjorn O.INSEAD Area: Strategy Series: Working Paper ; 98/37/SM Publisher: Fontainebleau : INSEAD, 1998.Language: EnglishDescription: 47 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: In this paper, the authors build on a detailed case stduy and the theories of evolution in social and cultural systems and intra-organizational ecology to develop a model of strategy as guided evolution. Its primary distinctions from earlier models of organizational and intra-organizational ecology lies in 1) the incorporation of an important -yet realistic- role of top management in shaping the direction and outcomes of the evolutionary processes within firms, and 2) the incorporation of human and social capital as a critical unit of selection within such processes. The authors argue that the model has several advantages over existing alternatives, both as a robust framework for theorizing about strategic processes and as a practical approach to management that can help firms successfully adapt to changes in the external environment.
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In this paper, the authors build on a detailed case stduy and the theories of evolution in social and cultural systems and intra-organizational ecology to develop a model of strategy as guided evolution. Its primary distinctions from earlier models of organizational and intra-organizational ecology lies in 1) the incorporation of an important -yet realistic- role of top management in shaping the direction and outcomes of the evolutionary processes within firms, and 2) the incorporation of human and social capital as a critical unit of selection within such processes. The authors argue that the model has several advantages over existing alternatives, both as a robust framework for theorizing about strategic processes and as a practical approach to management that can help firms successfully adapt to changes in the external environment.

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