Environment, Department Power, and Strategic Decison Making in Organizations: A Proposed Integration

Abstract

Much of the strategic management literature neglects a strong consideration of the impact of internal organizational power on strategy decisions. Instead, the role of more objectively measured factors are usually emphasized, particularly aspects of the external environment. When power is considered, only its effect on strategy implementation is typically discussed. This paper argues that department power is a major factor affecting the formulation and implementation of strategy in organizations and that environmental influences are mainly indirect.