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Strategic management theory has failed to explain the underlying principles of strategy processes and the relationships between strategy process and strategy content. There seems to be no theory of strategy logic, i. e. the general process and management characteristics generating a certain strategy outcome. Strategy content research has presented a systematic analysis on the basis of competitive advantage, and strategy process research has provided careful in-depth descriptions and examinations of strategy making. However, the basic strategy logic, including the underlying procedures, activities and reasoning that generate a particular type of strategy, has been less commonly evaluated. In particular, principles and details of strategy making in complex situations seem less clear.

Researchers have traditionally investigated aspects of the interorganizational monitoring process in piecemeal fashion. This conceptual piece argues that juxtaposing the categorization process with interorganizational emulation, imitation, and competition, brings focus to organizations’ attempts to acquire information from other organizations, signal internal and external constituencies, and ultimately change. We argue that the depth or intensity with which the monitoring process is pursued as well as the breadth or degree of overlap in the sets of organizations chosen to monitor, determines the volume and diversity of information acquired, the strength of the signal sent to constituent groups, and the amount and type of change likely to emerge from the process. All of these factors will ultimately affect the firm's future performance.

Enduring scholarly interest in the process of strategy-making stems from an abiding assumption that some ways of strategizing are more efficacious than others, and thus lead to higher firm performance in the long run; higher than luck alone would bring. Expressions of interest in and endorsements of the strategy process are abundant in the academic literature. As Pettigrew (1992) points out, Hofer and Schendel's pioneering definition of strategic management is processual in character emphasizing the development and utilization of strategy. Rumelt, Schendel, and Teece (1994) list the policy process question – how does policy process matter? – as a fundamental question of the strategic management field. Porter (1996) expresses preoccupation with the leadership and organizational challenges of managing the process. And, Hamel (1988) exhorts the field to devote as much attention to the conduct of strategy, i.e., the task of strategy making, as they have to its content. For senior managers and leaders, the question of how to make effective strategies stands usually at the top of their agenda. Not surprisingly then, the quest to uncover stable principles of good strategy making has attracted much support and interest over the years.

The study applies a multimodal approach to position aesthetic innovation, i.e., the strategic use of aesthetic design attributes, such as color and shape, as an institutionalized aspect of competition, rather than as a firm-specific differentiation strategy, in settings that favor the symbolic meanings of products. Empirically, the study offers a detailed case study of the personal computer (PC) industry to examine the institutionalization of aesthetic innovation as a dimension of competition across industrial firms. The study examines the color and shape of PCs over the 1992–2003 period and situates changes to these attributes in the competitive conditions that characterized the industry, paying particular attention to the introduction of the Apple iMac in 1998. Furthermore, it examines the discursive manifestations of aesthetic innovation by content analysis of reviews of PCs and interviews with industry executives. Findings demonstrate that, in a period coinciding with a decline in demand for PCs and an overall mature market as well as with the introduction of the iMac, the majority of firms engaged in aesthetic innovation and used a greater number of aesthetic words in describing their PCs.

This work addresses how consumer perceptions of quality may be influenced by the composition of competition. I develop a theoretical framework that explains how consumer evaluations of quality can be negatively impacted by a product's stylistic similarity to popular competitors. These issues are examined empirically using more than 75,000 online consumer evaluations, from the evaluation aggregator Rotten Tomatoes, of 123 feature films released in the United States during 2007. Results suggest that during a movie's opening week, movies that are stylistically similar to the top-performing box office movie are evaluated less favorably. Additional analyses indicate that this negative effect may persist in later periods due to social conformity pressures, and that there is reduced demand for those movies that are stylistically similar to the top box office performer. This article contributes to the broader literature in strategic management by depicting how stylistic features of competitors can affect consumer behaviour and perceptions of quality in markets. This work also suggests managerial implications for entry-timing decisions and positioning choices.

We analyze the role of top managers in the process of improving existing products in large established firms. The results of an inductive study reveal two key arguments. First, we find that the process is an “involved” top-down approach, rather than middle-up-down or bottom-up, discussed in previous studies on new product creation. Top managers actively participate throughout the process, taking on four roles: evaluation of product market performance, selection of products for improvement, initiation of the innovation process through delegation to middle managers of the responsibility to organize bottom-level employees to take actions toward product improvement, and monitoring of progress to ensure improvement (ESIM). Top managers become involved as necessary to reduce the resistance of people at the middle and lower levels to change in current routines. Second, we find that in companies that achieve superior product improvement, managers have well-developed professional absorptive capacity and have routinized frequent interactions to evaluate, select, initiate, and monitor. Other characteristics of managers, such as personal absorptive capacity, incentive system, or mandate from above, are common across both high and low performers.

Using an Internet-based business simulation, we examine emergent strategy processes and their consequences in a competitive environment. We find that the emergent decision processes of management teams vary in the extent to which they entail forward looking, anticipatory thinking and experimentation, and the attention the teams pay to their organizations’ capabilities. In dynamic and uncertain environments, information search activities and decision processes are key determinants of organizational performance. Our results suggest that effective emergent decision processes necessarily include elements of deliberate strategy.

In our framework, we examine the influence of both reactive and proactive cognitive variables on strategic change. Reactive sources that impact strategic change are perceptions and attributions – cognitions that determine the “what” and the “why” of performance. Perceptions are first-order cognitions that assess what is the performance feedback: positive or negative? After performance feedback is perceived, attributions are second-order cognitions that attempt to establish why the performance is positive or negative.