Rational Strategic Reasoning: An Unnatural Act?

Publication Type

Journal Article

Publication Date

8-1998

Abstract

We review recent literature on competitive reactions and strategic thinking and offer several observations. Evidence is mounting that strategic thinking is an unnatural act, made difficult by natural individual biases and organizational roadblocks. In addition, it is possible that uncertainty about competitive behavior is caused by and contributes to informal and incomplete competitive intelligence. We propose a simple model which suggests a potential path dependency in a firm's intelligence gathering, driven by the inertia of its past decision-making. Such a path dependency can be broken, however, as evidenced by several examples of firms who have overcome barriers to strategic thinking in creative ways. Paradoxically, though, there are circumstances in which competition is overemphasized in decision-making. Research priorities are discussed.

Discipline

Business

Research Areas

Strategy and Organisation

Publication

Marketing Letters

Volume

9

Issue

3

First Page

285

Last Page

299

ISSN

0923-0645

Identifier

10.1023/a:1008024306716

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