Encouraging emergence of cross-business strategic initiatives

J. Ignacio Canales, Adrián Caldart

Research output: Contribution to journalArticle

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Abstract

We explore how strategic initiatives emerge at the business unit level in the context of multi-business firms. Findings show that such initiatives create cross-business synergies in the absence of any direct intervention from the headquarters. Four factors appeared to foster the development of autonomous cross-business collaboration: a sense of urgency at the level of the firm, the existence of a few broad but strong corporate strategic guidelines, the existence of a set of cross-business integration mechanisms, and an organizational culture promoting collaboration. Our findings suggest that, in addition to developing and enforcing top-down cross-business initiatives, headquarters would benefit from acknowledging the importance of business units' local knowledge by creating an organizational environment characterized by the four conditions identified in this paper.
Original languageEnglish
Pages (from-to)300-313
Number of pages14
JournalEuropean Management Journal
Volume35
Issue number3
Early online date4 Nov 2016
DOIs
Publication statusPublished - Jun 2017

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Keywords

  • corporate strategy
  • multi-business corporations
  • autonomous initiatives
  • cross business strategic initiatives

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