Strategic Management: Diverse Challenges & Adaptations

Marcs Pereira^*
*Correspondence: Marcs Pereira, Department of Finance, University of Porto, Porto, Portugal, Email:

Introduction

This paper offers a clear framework for understanding how organizations strategically respond to large-scale, complex societal issues like climate change or poverty, often called grand challenges. It categorizes these responses, helping us see how firms can move beyond mere compliance to genuinely contribute to sustainability. What this really means is that companies have different options for tackling big problems, from small internal changes to collaborating widely, and this typology helps make sense of those choices[1].

Here's the thing about new ventures and technological shifts: simply having a great idea isn't enough. This research highlights how entrepreneurial narrativesâ??the stories founders tellâ??are crucial for grabbing attention and resources. It emphasizes that in fast-changing tech environments, how you frame your venture matters immensely for mobilizing stakeholders and securing buy-in. It's about more than just innovation; it's about the compelling story behind it[2].

This study digs into how external pressure from stakeholders influences a company's commitment to environmental responsibility. It points out that strategic planning acts as a key middle step, translating stakeholder demands into actual green initiatives. What this means for leaders is that you don't just react to pressure; you integrate those demands into your strategic blueprint to meaningfully improve environmental performance, essentially making it part of your core business approach[3].

Let's break down strategy. This article provocatively asks what strategy truly is, and perhaps more importantly, what it isn't. It challenges conventional wisdom, urging us to look beyond simple definitions and consider the deeper implications of strategic choices and the underlying theories. It helps clarify the core concept of strategy, pushing strategists to think more critically about how they define and pursue long-term objectives within organizations[4].

This paper explores the strategic implications of platform ecosystems, a common feature in today's business world. It moves beyond just seeing platforms as technology, focusing instead on how they reshape competitive landscapes and create new forms of value. What this really means is that strategy needs to account for the intricate web of relationships and interdependencies that arise in platform environments, influencing everything from market entry to innovation pathways[5].

This research dives into how organizations balance exploration (finding new opportunities) and exploitation (refining existing ones), and how executive attention plays a critical role. It suggests that where leaders direct their focus significantly shapes a firm's ability to adapt and perform over time. The key insight is that simply having capabilities isn't enough; leaders must strategically allocate their attention to drive the right balance of innovation and efficiency for sustained success[6].

This article re-examines the concept of 'liabilities of foreignness,' which describes the inherent disadvantages foreign firms face in host countries. Using evidence from Swedish multinational corporations, it provides updated insights into the specific challenges these firms encounter and how they navigate them. Essentially, it helps us better understand the real-world hurdles international expansion brings and how companies can strategically overcome them, offering a fresh look at a foundational idea in global strategy[7].

Here's the deal with multinational enterprises: their success isn't just about market competition; nonmarket strategies are hugely important too. This paper reviews existing knowledge on how these firms engage with political, social, and legal environments, offering a path for future research. It underscores that shaping the nonmarket context, through lobbying or public relations, is a critical strategic lever for global companies, often as vital as their market positioning[8].

This piece takes a fresh look at the Resource-Based View (RBV), a cornerstone of strategic management thinking. It takes stock of where RBV stands today and points to new directions for its evolution. The essential message is that while understanding unique resources is still central, the RBV needs to adapt to dynamic environments and integrate with other strategic perspectives to remain relevant and impactful for future competitive advantage[9].

Let's talk about corporate social responsibility (CSR) and how it connects with stakeholder engagement. This paper emphasizes that effective CSR isn't a standalone initiative; it's deeply interwoven with how companies interact with and understand their stakeholders. The key takeaway is that engaging effectively with diverse groups, from employees to communities, isn't just good practiceâ??it's fundamental to developing and implementing meaningful CSR strategies that actually deliver value for everyone involved[10].

Description

Organizations today grapple with immense societal issues, often termed grand challenges, such as climate change and poverty. A clear framework helps leaders understand how firms can strategically respond to these complex problems. This framework categorizes responses, guiding companies beyond mere compliance toward genuine contributions to sustainability. What this means is companies have a spectrum of options, from implementing small internal changes to engaging in wide-ranging collaborations, and this typology provides a way to make sense of those strategic choices [1]. This proactive stance on grand challenges connects directly to a company's commitment to environmental responsibility. External pressure from various stakeholders significantly shapes this commitment. Research shows that strategic planning acts as a pivotal mediating step, translating stakeholder demands into tangible green initiatives. Essentially, leaders do not simply react to external pressure; they actively integrate these demands into their strategic blueprint to meaningfully improve environmental performance, making it an integral part of their core business approach [3]. This focus on responsibility is further emphasized by the understanding that Corporate Social Responsibility (CSR) is not an isolated effort. Effective CSR is deeply intertwined with how companies interact with and understand their stakeholders. Engaging diverse groupsâ??employees, communities, and othersâ??is fundamental for developing and implementing CSR strategies that deliver real value for everyone involved [10].

To truly grasp strategic management, one must first explore the fundamental question: what is strategy, and equally important, what is it not? This challenge to conventional wisdom urges a look beyond simple definitions, pushing strategists to critically consider the deeper implications of their choices and the underlying theoretical foundations. It helps clarify the core concept of strategy, encouraging more critical thinking about how long-term objectives are defined and pursued within organizations [4]. Complementing this definitional clarity is the critical task of balancing exploration and exploitation within an organization. Exploration involves seeking new opportunities, while exploitation focuses on refining existing ones. Executive attention plays a crucial role here, as where leaders direct their focus significantly shapes a firm's ability to adapt and perform over time. The key insight is that capabilities alone are insufficient; leaders must strategically allocate their attention to achieve the right balance of innovation and efficiency for sustained success [6]. This brings us to a foundational theory in strategic management, the Resource-Based View (RBV). A fresh look at the RBV acknowledges its current standing while pointing to new evolutionary directions. The essential message remains that while understanding unique resources is central, the RBV must now adapt to dynamic environments and integrate with other strategic perspectives to maintain its relevance and impact for future competitive advantage [9].

The external environment presents its own set of strategic challenges and opportunities. For new ventures navigating technological shifts, simply having a great idea is often insufficient. Research highlights the crucial role of entrepreneurial narratives â?? the stories founders tell â?? in attracting attention and securing resources. In fast-changing tech environments, how a venture is framed matters immensely for mobilizing stakeholders and securing buy-in. It transcends mere innovation; it's about the compelling story that underpins it [2]. Building on external dynamics, the strategic implications of platform ecosystems are also profoundly reshaping the business world. These platforms are more than just technology; they fundamentally alter competitive landscapes and generate new forms of value. What this really means for strategists is that they need to account for the intricate web of relationships and interdependencies inherent in platform environments, influencing critical aspects from market entry strategies to innovation pathways [5].

In the realm of global strategy, the concept of 'liabilities of foreignness' remains a pertinent concern, describing the inherent disadvantages foreign firms encounter in host countries. A re-examination, using evidence from Swedish multinational corporations, provides updated insights into the specific challenges these firms face and how they successfully navigate them. This helps foster a better understanding of the real-world hurdles associated with international expansion and how companies can strategically overcome them, offering a fresh perspective on a foundational idea in global business [7]. Beyond traditional market competition, multinational enterprises (MNEs) increasingly recognize the immense importance of nonmarket strategies for their overall success. This area of research reviews how MNEs engage with political, social, and legal environments, outlining a path for future inquiry. It underscores that shaping the nonmarket context, through activities like lobbying or public relations, serves as a critical strategic lever for global companies, often proving as vital as their market positioning in achieving their objectives [8].

Conclusion

Strategic management encompasses a diverse range of critical considerations for organizations navigating a complex global landscape. A key area involves how firms strategically respond to grand societal challenges like climate change, moving beyond compliance to achieve genuine sustainability through varied actions, from internal shifts to broad collaborations. Innovation in new ventures relies heavily on entrepreneurial narratives, as founders' stories are crucial for mobilizing attention and resources in fast-changing technological environments. External pressures from stakeholders significantly influence corporate environmental responsibility, where strategic planning mediates these demands into actionable green initiatives, embedding them into core business approaches. Understanding strategy itself means questioning its definitions and exploring the deeper implications of strategic choices. Furthermore, the strategic implications of platform ecosystems necessitate an understanding of how they reshape competitive dynamics and create new value, requiring strategies that account for intricate interdependencies. Internally, balancing exploration and exploitation for organizational adaptation critically depends on executive attention, as leaders must strategically direct focus to drive both innovation and efficiency. In the international arena, revisiting 'liabilities of foreignness' provides updated insights into challenges faced by multinational corporations and their mitigation strategies. Success for Multinational Enterprises (MNEs) also relies heavily on nonmarket strategies, encompassing engagement with political, social, and legal environments. Finally, the foundational Resource-Based View (RBV) of strategy requires adaptation to dynamic contexts and integration with other perspectives to remain relevant, while Corporate Social Responsibility (CSR) is deeply interwoven with effective stakeholder engagement to deliver meaningful value.

Acknowledgement

None

Conflict of Interest

None

References

Michael LB, Jeremy GD, Jonathan PD. "Strategic responses to grand challenges: A typology of organizational actions for sustainability".JMS 57 (2020):204-230.

Indexed at, Google Scholar, Crossref

Katherine CO, Violina PR, Christine MB. "Mobilizing attention to new ventures: The role of entrepreneurial narratives in the context of technological change".SMJ 43 (2022):1184-1210.

Indexed at, Google Scholar, Crossref

Tao W, Pingsheng Z, Qi C. "Stakeholder pressure and corporate environmental responsibility: The mediating role of strategic planning".Bus Strat Env 29 (2020):170-181.

Indexed at, Google Scholar, Crossref

Phanish P, Nick F, Markus Z. "What is strategy (not)?".AMR 45 (2020):661-683.

Indexed at, Google Scholar, Crossref

Ron A, Rahul K, Federico Z. "The strategic implications of platform ecosystems".Organ Sci 32 (2021):159-183.

Indexed at, Google Scholar, Crossref

Giovanni G, Daniel AL, William O. "Exploration, exploitation, and organizational adaptation: The role of executive attention".SMJ 41 (2020):577-601.

Indexed at, Google Scholar, Crossref

Lars H, Dan N, D. DS. "The liabilities of foreignness revisited: Evidence from Swedish multinational corporations".JMS 58 (2021):576-601.

Indexed at, Google Scholar, Crossref

Kamel M, Jedrzej GF, Qinxuan L. "Nonmarket strategies in multinational enterprises: A review and future research agenda".SMJ 42 (2021):1147-1175.

Indexed at, Google Scholar, Crossref

Jay BB, David JKJ, Mike W. "The Future of the Resource-Based View: Taking Stock and Moving Forward".JM 47 (2021):1779-1795.

Indexed at, Google Scholar, Crossref

Shuili D, C.B. B, Sankar S. "Corporate Social Responsibility and Stakeholder Engagement".JM 46 (2020):154-180.

Indexed at, Google Scholar, Crossref