Does strategy rhyme with austerity?

Denita Cepiku, Filippo Giordano and Andrea Bonomi Savignon

Public Management Review, 2018, vol. 20, issue 3, 421-443

Abstract: A two-way relation links austerity to strategy, although the two literatures have not influenced each other much. On one hand, global economic and financial crises are expected to influence strategic planning practices of public managers struggling to ensure that while their organizations shrink they remain functional and effective. On the other, the type of strategic planning adopted is expected to influence the effectiveness of the crisis management strategy. Both links have been explored; however, theoretical research is not in agreement, while empirical research has focused on budget behaviours and has so far produced inconclusive results. We pose the following research questions: What are the effects of austerity on strategic planning practices? Does the type of strategic planning matter for crisis management? We analyse strategic behaviours of the largest fifteen Italian cities during the crisis and their effects. Decision-making behaviour is grouped under five different models: formal strategic planning, logical incrementalism, a combination of formal strategic planning and logical incrementalism (blended approach), disjointed incrementalism and inertia.

Date: 2018
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DOI: 10.1080/14719037.2017.1285116

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