Simplicity complexity as a dimension of strategic focus: effect on performance in different organisational domains

Questions whether companies are in danger of becoming too narrow in their focus making their views too simplistic and perhaps ignoring other strategic factors which may be important. Lists arguments for a more focused simplistic strategy but then states that as organizations become more complex a wi...

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Bibliographic Details
Published in:Management research news 1999-07, Vol.22 (7), p.12-20
Main Author: Drago, William A
Format: Article
Language:English
Subjects:
Comparative analysis
Diversification
Likert scale
Organizational behavior
Product lines
Regression analysis
Simplification
Skills
Strategic management
Strategic planning
Studies
Success
Vertical integration
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Summary:Questions whether companies are in danger of becoming too narrow in their focus making their views too simplistic and perhaps ignoring other strategic factors which may be important. Lists arguments for a more focused simplistic strategy but then states that as organizations become more complex a wider view is required. Presents the results of a survey of 156 US chief executives suggesting that vertically integrated companies need a more complex strategy but product diversity leads to a more simplistic strategy and international scope appeared to have little effect. Concludes further research is required but initial findings suggest that a company's structure and market may define the optimum simplicity of its strategic view.
ISSN:0140-9174
2040-8269
1758-6135
2040-8277
DOI:10.1108/01409179910781724