Factors influencing strategy-making processes: A field study of Korean firms in a rapidly changing environment

Abstract

The purpose of this dissertation is to learn more about strategy-making in business organizations by examining Korean conglomerate firms in a rapidly changing environment. The Korean context, an environment that has received little research attention, provides a testing ground for existing theories and the possibility of generating additional insights into the process of strategy-making for firms in countries at various levels of development.

Following the qualitative research tradition in the field of strategy, the study is guided by a contextual research framework suggested by Pettigrew (1985a, 1985b). Drawing on data from field interviews with forty five managers of ten large Korean chaebols, qualitative thematic content analysis is used to identify similarities and differences in five key areas across individuals and organizations. The study examines the conceptualization of strategy, descriptions of strategy-making, depiction of the business environment, the role of government, and perceived opportunities. The results are then compared with evidence of managerial practices based on data from Western industrialized countries. The studies of Bower (1970) and Burgelman (1980) are given particular attention, and modifications of process models suggested by each author are made to accommodate data collected in this study. The study then derives a more general model of strategy-making process that can be applied to many sectors of a globalizing economy.