Strategic Reflexivity as a Framework for Understanding Development in Modern Firms. How the Environment Drives Innovation

  • Jon Sundbo
  • Lars Fuglsang
Chapter

Abstract

In this chapter, we argue that ‘strategic reflexivity’ can be seen as one way to conceptualize the development of modern firms. Modern firms and other organizations are often under pressure to develop or innovate in order to survive, but they depend on future markets and environments of which they do not have objective knowledge. Therefore they have to make use of uncertain development strategies within a framework of what we here call ‘strategic reflexivity’. Strategic reflexivity is based on reflexive interpretations about developments in the environment (or the market) of the firm. For instance, what is normally conceived as market driven innovation (Nyström, 1990; Tidd, Bessant & Pavitt, 1997) must, within the framework of strategic reflexivity, be understood as a process in which the firm does not react directly on the basis of ‘objective’ market changes, but creates an interpretation of the future environment that guides their development process. This approach to strategy can also be found in Mintzberg (1998) as well as Daft and Weick’s (1984) view of the firm as an interpretation system; thus it is not new. What is new in this chapter is the combination of this approach with Weick’s (1995) sense-making approach and the resource-based view of the firm (e.g., Grant, 1991) in an attempt to explain innovation. This theoretical combination is particularly useful as it leads us to a broader interpretation of the concept of innovation and a new model of the innovative organization, which specifies the firm as a system of roles.

Keywords

External Condition Radical Development Middle Manager Objective Knowledge Social Entrepreneur 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in to check access.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Bibliography

  1. Beck, U. (1992), Risk Society ( London: Sage).Google Scholar
  2. Boden, M. & Miles, I. (eds) (2000), Services and the Knowledge-based Economy ( London: Continuum ).Google Scholar
  3. Daft, R.L. & Weick, K.E. (1984), ‘Toward a Model of Organizations as Interpetration Systems’, Academy of Management Review, 9 (2), pp. 284–95.Google Scholar
  4. Drucker, P. (1985), Innovation and Entrepreneurship ( New York: Harper & Row).Google Scholar
  5. Freeman, C. & Soete, L. (1997), The Economics of Industrial Innovation ( London: Pinter).Google Scholar
  6. Fuglsang, L. (2001), ‘Management Problems in Welfare Services: The Role of the ‘Social Entrepreneur’ in Home-help for the Elderly, the Valby Case’, Scandinavian Journal of Management, 17 (4), pp. 437–55.CrossRefGoogle Scholar
  7. Gallouj, F. (2002), Innovation in the Service Economy ( Cheltenham: Elgar).CrossRefGoogle Scholar
  8. Giddens, A. (1984), The Constitution of Society ( Cambridge: Polity).Google Scholar
  9. Goffman, E. (1959), The Presentation of Self in Everyday Life ( New York: Doubleday).Google Scholar
  10. Grant, R. (1991), ‘The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation’, California Management Review, spring, pp. 114–35.Google Scholar
  11. Grant, R. (2002), Contemporary Strategic Analyses ( Malden, MA: Blackwell).Google Scholar
  12. Grönroos, C. (2000), Service Management and Marketing ( Chichester: Wiley).Google Scholar
  13. Hamel, G., & Prahalad, C.K. (1994), Competing for the Future ( Boston: Harvard Business School Press).Google Scholar
  14. Hauknes, J. (1998), Services in Innovation - Innovation in Services (SI4S final report, Oslo: STEP Group).Google Scholar
  15. Howells, J. (2004), ‘Innovation, Consumption and Services’, Service Industries Journal, 24 (1), pp. 19–36.CrossRefGoogle Scholar
  16. Kanter, R.M. (1983), The Change Masters ( London: Unwin).Google Scholar
  17. Knorr-Celina, K., Aaron, V. & Cicourel, A. (eds) (1981), Advances in Social Theory and Methodology. Toward an Integration of Micro- and Macro-sociologies ( London: Routledge ).Google Scholar
  18. Lawrence, P.R. & Lorsch, J.W. (1967), Organization and Environment ( Boston: Harvard University Press).Google Scholar
  19. Linton, R. (1936), The Study of Man ( New York: Appelton Century-Crofts).Google Scholar
  20. Mead, G.H. (1934), Mind, Self and Society ( Chicago: Chicago University Press).Google Scholar
  21. Mintzberg, H. (1994), The Rise and Fall of Strategic Planning ( New York: Free Press).Google Scholar
  22. Mintzberg, H., Ahlstrand, B. & Lampel, J. (1998), Strategy Safari ( New York: Free Press).Google Scholar
  23. Nyström, H. (1990), Technological and Market Innovation ( Chichester: Wiley).Google Scholar
  24. Owen, G. (1995), Game Theory ( San Diego: Academic Press).Google Scholar
  25. Penrose, E.T. (1959), The Theory of the Growth of the Firm ( New York: Blackwell).Google Scholar
  26. Pine, B.J. & Gilmore, J.H. (1999), The Experience Economy ( Boston: Harvard Business School Press).Google Scholar
  27. Porter, M. (1985), Competitive Advantage ( New York: Free Press).Google Scholar
  28. Porter, M. (1990), The Competitive Advantage of Nations ( New York: Macmillan).CrossRefGoogle Scholar
  29. Schendel, D. & Channon, D. (eds) (1990), ‘Special Issue on Corporate Entrepreneurship’, Strategic Management Journal, 11, summer.Google Scholar
  30. Schumpeter, J. ( 1911 [1934]), The Theory of Economic Development ( Boston: Harvard University).Google Scholar
  31. Shavina, L. (ed.) (2003), The International Handbook on Innovation ( New York: Pergamon ).Google Scholar
  32. SIC (Service Development, Internationalization and Competence Development) (1999), Danish Service Firms’ Innovation Activities and use of ICT, Report no. 2 from the project.Google Scholar
  33. SIC (Service Development, Internationalisation & Competence Development), (Roskilde: Centre for Service Studies, Roskilde University) (http://www.ruc.dk/css/sic/published.html).
  34. Sundbo, J. (1998), The Organisation of Innovation in Services ( Copenhagen: Roskilde University Press).Google Scholar
  35. Sundbo, J. (2001), The Strategic Management of Innovation ( Cheltenham: Edward Elgar).Google Scholar
  36. Sundbo, J. (2002), ‘Innovation as a strategic process’ (in Sundbo & Fuglsang).Google Scholar
  37. Sundbo, J. (2003), ‘Innovation and Strategic Reflexivity’ (in Shavina).Google Scholar
  38. Sundbo, J. & Fuglsang, L. (eds) (2002), Innovation as Strategic Reflexivity ( London: Routledge ).Google Scholar
  39. Sundbo, J. & Fuglsang, L. (2004), The Organizational Representation of Innovation: Three Modes (Roskilde, manuscript).Google Scholar
  40. Teece, D.J. & Pisano, G. (1994), ‘The Dynamic Capability of Firms: An Introduction’, Industrial and Corporate Change, 3 (3), pp. 537–56.CrossRefGoogle Scholar
  41. Tidd, J., Bessant, J. & Pavitt, K. (1997), Managing Innovation ( Chichester: Wiley).Google Scholar
  42. Weick, K. (1995), Sensemaking in Organizations ( Thousand Oaks, CA: Sage).Google Scholar
  43. Weick, K. (1998), ‘Introductory Essay — Improvization as Mindset for Organizational Analysis’, Organization Science, 9 (5), pp. 213–34.CrossRefGoogle Scholar

Copyright information

© Jon Sundbo and Lars Fuglsang 2006

Authors and Affiliations

  • Jon Sundbo
  • Lars Fuglsang

There are no affiliations available

Personalised recommendations