Value incongruity and strategic choice

Abstract

Research addressing how values held by individuals in organizations influence strategy choice and implementation is as yet fragmented. Different strands of this research have yielded contradictory prescriptions for strategy. This paper examines how values affect strategy, by focusing on the social control they exert. Social control manifests itself through the behaviours permitted and proscribed by given values. We call a value a core value when the social control it exerts supersedes that of most other values in a value system. When the social control a value exerts is itself superseded by that exerted by most other values in a system, we call the value a peripheral value in that system. Strategies could be depicted as containing implicit values, in that they too entail prescriptions for behaviour. Thus, core values implicit to strategies enable behaviour essential for the success of strategies. Values seemingly peripheral to strategies enable behaviour peripheral or even tangential to their success. This paper discusses several contingencies - clashes between core values of decision makers and values implicitly at the core of strategies, core and peripheral values, as well as clashes between peripheral values - in the context of both corporate and competitive strategies. Finally, some factors that might mitigate these clashes, are also discussed.