Knowledge that Transforms

This article reviews the major theoretical approaches to strategic decision‐making and identifies how each treats the process of problem formulation. Five models of strategic decision‐making are analysed to determine the assumptions and biases made about strategic problem formulation. Successful strategic problem formulation is described and proposed as a beginning point for future research. Some constructs for further theory development are addressed.

The progress made in strategic groups research is evaluated by identifying its relevance and importance to the field of strategic management. A classificatory scheme is developed using two dimensions: the operationalization of strategy; and the approach to group development. A review framework incorporating key analytical dimensions is drawn up to (a) develop a taxonomy for classifying the available empirical research on strategic groups; (b) assess the research and identify important summary patterns and (c) develop specific research directions from a stategic management perspective.

Sensemaking in crisis conditions is made more difficult because action that is instrumental to understanding the crisis often intensifies the crisis. This dilemma is interpreted from the perspective that people enact the environments which constrain them. It is argued that commitment, capacity, and expectations affect sensemaking during crisis and the severity of the crisis itself. It is proposed that the core concepts of enactment may comprise an ideology that reduces the likelihood of crisis.