| Since the 1970s, there has been an ongoing debate in the literature as to the most effective means of formulating strategy. One camp has touted the merits of formal deliberate strategic planning while the other camp has maintained that strategy simply emerges over time as a firm takes various actions in response to environmental stimuli. Recently, some researchers have recognized the more realistic view that deliberately planned strategies transform during implementation through an emergent strategy formation process.;This work contributes to the literature by taking a first step toward adding the complexity of context to our understanding of how strategies are formulated and implemented. In 1985, Mintzberg and Waters proposed the concept that intended strategies are transformed into realized strategies during implementation. This research has attempted to identify and test the contextual factors which impact strategy transformation.;An a priori model was initially developed through a review of the literature to identify variables which may impact strategy transformation during implementation. These variables were validated, and new variables added, through a series of interviews with executives. This model was then tested using a quantitative survey which was developed and populated with measures taken from the literature, and added to or modified based on the interviews.;Exploratory factor analysis was used during the data analysis to aid in the development of a Strategy Transformation Model. The model is a step toward our understanding of how strategy transforms during implementation and the factors which most impact this transformation. Further, because of the moderator and mediator interactions between the constructs, it heightens an awareness of the complex and evolving nature of strategy as an implementation proceeds. What becomes clear is that strategy is a living evolving conceptual entity and strategic plans should be living documents.;A key gap in the strategy literature is a lack of theory, especially as it relates to the contextual factors which may impact strategy transformation during implementation. In general, the literature has given little consideration to the complex web of internal and external contextual factors which impact a firm at any given time.;Flexibility is a central concept in the Strategy Transformation Model. Flexibility inherent in the plans, approach and culture of organizations and leadership teams allows them to react appropriately to the impacts of contextual factors during implementations. Based on the survey, some be that flexibility is the factor which allows leadership teams to have a level of control over how this transformation proceeds. |
