Strategy as social practice: strategizing in a organizational network

Abstract

The aim of this paper is to identify and analyze the strategizing process in an organizational network of small and medium size enterprises. We employ the Strategy as Social Practice perspective as reference for the study. This approach assumes that strategies are constituted in everyday life, through interactions among the actors, who negotiate their various and contradictory interests. That approach follows the movement that has occurred in social theory, which focuses on social practices. The research is based on a qualitative case study developed in an interorganizational network at Minas Gerais. Data collection was conducted through in-depth interviews, non-participant observation and documentary analysis. Based on information search in the field we identify the existence of four strategic practices in the network (Negotiating and Purchasing, Pricing Products, Defining Brand and Designing Franchises, Creating the Credit Card). Such strategies have been identified as “individual” or “collective”. “Individual” and “collective” strategies influence each other on the process of strategizing, however, the line that separating them is unclear to the extent that the interests are negotiated. We conclude that the strategies as practice developed in the network, in the course of the relationships between actors, are constantly in tensions and contradictions among various inter-organizational interests. Moreover, the strategies do not follow a consistent logic through deliberate actions towards a clearly defined goal.