We Act Therefore We Are: A Theory of Action Driven Strategy

Abstract

This dissertation examines the effects of competitive actions on strategic choice. Despite acknowledging that competitive behavior might be an important determinant of organizational strategy, researchers in strategic management have yet to explore how competitive actions that firms adopt to acquire competitive advantage can also encourage future strategic decisions. Competitive actions can be sources of strategic choice because they expose the firm to its competitive environment. This exposure to the competitive environment generates salient experience and knowledge that narrow managerial selection of strategic alternatives, therefore influencing strategic choice.

This dissertation develops a conceptual framework that links competitive dynamics to strategic choice literature and provides an empirical model grounded on observable and quantitative variables. Specifically, it tests how characteristics of competitive actions such as scope, and the use of action repertoires can directly influence strategic choices such as the adoption of diversification strategies, the divestment of assets, and the implementation of corporate social responsibility policies.

Results confirm the theoretical prediction that competitive actions are drivers of strategic choice. I found support that characteristics of actions like breadth and the diversity of repertoires that firms adopt to compete are motivators of strategic choice. Such findings indicate that previously neglected connections between competitive behavior and strategy are relevant and indicative that firms' might access knowledge and experience previously obtained in the marketplace to decide which strategies to take.