Rationality Bias of Strategy Theory

Strategy as Leverage of Local Institutions

Abstract

As shown by the discussion on strategy as practice in recent years, if it is assumed that the strategy does NOT identify “a reification category” or “organization has,” there is the difference with the local institutional rules in that the subject has been assumed, and it is the chance of organizing a strategy for the institution is changed. Through this process, it is possible to emancipate from the effectiveness and universal discourse of existing strategy theory. Therefore, in this paper, we examine the history of the strategy theory and the development of existing research, especially the process school and content school. As a rationality bias exists in strategy theory, consequently, it separates from strategy practice and the practice of strategy theory by the researcher is constructed. In addition, we discuss two theoretical difficulties when the strategy is discussed regarding how the person concerned with the firm strategy practice can be described, and, explain the possibility of using the strategy as leverage of the local institution.