The usage of strategy tools in South-African firms

Abstract

This researched aimed at inventorying the strategy tools commonly used in South-African firms and to study the usage that is made of these strategy tools. A survey-based data gathering was carried out, and was followed by a frequency analysis of tools selection. In parallel, the data obtained on the usage characteristics were subjected to a statistical treatment aimed at clustering a large number of variables of interests into integrative constructs. The constructs were interpreted in light of various theories drawn from the study of strategy development and the fields of social psychology, cognitive sciences and agency based approaches to tools-in use. The resulting dimensions were used to assess the usage of strategy tools along four dimensions encompassing usage for coordination purposes, for analytical purposes, for political communication purposes and for social cognitive framing purposes. It was shown that in the vast majority of cases and on average, the softer functions were scored higher than the more formal ones. The argument was made that strategy tools in use mirror the characteristics of strategy development itself, and as such naturally encompass political, communicational, cognitive and social functions that are inherent to strategy as it occurs in the firm.