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

Abstract

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.

Citation

Drago, W.A. (1999), "Simplicity/complexity as a dimension of strategic focus: effect on performance in different organisational domains", Management Research News, Vol. 22 No. 7, pp. 12-20. https://doi.org/10.1108/01409179910781724