Deliberate Simple Rule Creation and Use : Activities and Challenges

Faculty/Professorship: Strategy and Organisation Studies 
Author(s): Friesl, Martin  ; Kratochvil, Renate; Gruenauer, Johanna; Güttel, Wolfgang H.
Publisher Information: Bamberg : Otto-Friedrich-Universität
Year of publication: 2023
Volume: 56
Issue: 1
Pages: 1-14
Source/Other editions: Long range planning : LRP ; international journal of strategic management, 56 (2023), 1, S. 1-14 - ISSN: 0024-6301
is version of: 10.1016/j.lrp.2022.102264
Year of first publication: 2023
Language(s): English
Licence: Creative Commons - CC BY - Attribution 4.0 International 
URN: urn:nbn:de:bvb:473-irb-584061
Using ‘simple rules’ may enable managers to take organizational decisions more rapidly. While prior research presents advantages of simple rule use during strategy formation, we lack insights into how firms can deliberately create simple rules and mitigate the challenges during strategy implementation. This is particularly interesting for established firms struggling to leverage their wealth of experience. We explore how managers of a multinational corporation deliberately create and use simple rules to implement the firm's growth strategy. Drawing on interviews and secondary data, we reveal the activities through which managers ensure the relevance and legitimacy of codified simple rules, yet also establish causality between simple rules and outcomes. Simple rule creation is accomplished via bottom-up identification and lateral validation, its use via consistent top-down guiding and timely adaptation. Our findings contribute to the growing body of research on the evolution of simple rules and aspects of strategy implementation more generally.
GND Keywords: Multinationales Unternehmen; Strategisches Management; Unternehmenswachstum; Regel
Keywords: Simple rules, Experience, Simplicity, Bottom-up, Strategy implementation, Established firm
DDC Classification: 650 Management & public relations  
RVK Classification: QP 320   
Type: Article
Release Date: 14. April 2023

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