Investigating strategy tools from an interactive perspective

Abstract

Purpose: This paper investigates how the strategic management concept of ‘strategy tools’ can be reinterpreted from an industrial network perspective. It considers how strategy tools are used to influence the substance of relationships and how firms engage in strategic action by using such tools. Design/methodology/approach: Using case study research involving three focal firms, the paper scrutinizes use of selected strategy tools to examine how they are used to systematically relate to others and create benefits and affect development paths in business relationships. Findings: Strategy tools can be viewed as an integrated part of a networking pattern of mobilizing resources, linking activities and relating actors. Seen in this manner, use of strategy tools can be interaction-facilitating or interaction-creating. Research limitations/implications: In an interactive approach, strategy tools must be seen in relation to others as they are used in strategic (co-)action to engage and involve others. In this view, tools are strategic when used to affect the long-term development of important business relationships. Practical implications: Practitioners should acknowledge that the use of a strategy tool to handle counterparts is emerging, and valuable only in relation to specific others. Because the value of strategy tools is unknowable until it is revealed how they can affect the substance of a specific relationship, there is no best-practice or one-size-fits-all approach. Originality/ value: This paper illuminates the phenomenon of ‘strategy tools’ by considering it from both sides of the business exchange interface. Keywords: strategy tools, strategic action, strategizing in networks, ARA model, Strategy-as-Practice Paper type: Research paper