Nested identities as cognitive drivers of strategy

Jennifer Irwin · Brooke A. Lahneman · Anne Parmigiani

46 citations0/0 files storedStrategic Management Journal

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Management and Organizational Studies Innovation and Knowledge Management Business Strategy and Innovation

Abstract

Research Summary : Organizations face tensions to conform to industry norms for legitimacy yet differentiate for competitive advantage when implementing strategies. We suggest this tension is due to and resolved through organizations’ cognitive negotiations of multiple levels of identity. Through an inductive study in the recreational vehicle industry, we find that organizations concurrently draw on identities at the organizational, industry, and strategic group levels to formulate and enact specific competitive actions. Specifically, we find that organizational identity relates to decisions on product offerings; industry identity relates to downstream strategy; and strategic group identity relates to upstream strategy, firm boundaries, and expansion mode. Our findings highlight the importance of strategic group identity and inform a grounded model describing how organizations draw upon different levels of identity to influence strategy. Managerial Summary : Many managers experience tensions of differentiating their firms’ competitive actions from rivals, while conforming with industry norms and practices. In this article, we argue that a manager can navigate these tensions by understanding their firm, strategic group, and industry identities and how these identities interrelate. Through a qualitative case study of the U.S. recreational vehicle industry, we show that each level of identity influences different competitive actions, with firm identity connected to product offerings, industry identity related to managing downstream distribution, and strategic group identity related to firm boundary and acquisition strategies. Overall, strategic group identity is the most critical for managers as this level filters how they view competitors and provides the rules of competition.

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References

1994Qualitative Data Analysis: An Expanded Sourcebook 1991Firm Resources and Sustained Competitive Advantage 2007Theory Building From Cases: Opportunities And Challenges 1980Competitive Strategy: Techniques for Analyzing Industries and Competitors 1991Towards a dynamic theory of strategy 1997What is the Right Supply Chain for Your Product 2008What passes as a rigorous case study?1994Understanding corporate coherence

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2019(Un)Mind the gap: How organizational actors cope with an identity–strategy misalignment 2022How new venture strategies promote firm performance: an optimal distinctiveness perspective 2021Evolution of Qualitative Research Methods in Strategic Management

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