Congruent, Divergent and Incoherent Corporate Level Strategies

Cliff Bowman, Keith Ward and Andrew Kakabadse

European Management Journal, 2002, vol. 20, issue 6, 671-679

Abstract: This paper draws together four related strands of theory to address the processes of corporate value creation. Specifically, contributions from resource-based theory, dynamic capabilities, corporate strategy and Mintzberg's structure theory have been combined to derive four congruent resource-creating strategies: financial control, scale, leverage, and creativity. Mintzberg's configurations approach is used to explore the organisational structures and processes associated with each strategy. It argues that choices with respect to corporate resource creation must be made as these four strategies require distinct, congruent organisational arrangements. When congruent strategies deliver diminishing returns, divergent strategies may be pursued. However, there is a risk of incoherence where a divergent strategy is poorly implemented.

Keywords: Corporate; Value; Creation; Congruent; Resource-creating; Strategies; Divergent; Resource-creating; Strategies; Corporate; Level; Strategies; Dynamic; Capabilities (search for similar items in EconPapers)
Date: 2002
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