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49 No. 3, pp. 269-93. Rao, H. and Drazin, R. (2002), “Overcoming resource constraints on product innovation by recruiting talent from rivals: a study of the mutual fund industry, 1986-1994”, Academy of Management Journal, Vol. 45 No. 3, pp. 491-507. Shenkar, O. and Yuchtman-Yaar, E. (1997), “Reputation, image, prestige, and goodwill: an interdisciplinary approach to organizational standing”, Human Relations, Vol. 50 No. 11, pp. 1361-81. A. (1974), Market Signaling, Harvard University Press, Cambridge, MA.
Given the high level of uncertainty and rate of change, the heavy dependence on people in creating value, we propose that the key role for strategy is providing a common vision of what the organization is to achieve, and a purpose or fundamental reason for being. It 321 should also provide managers with a shared context for decision-making and to guide the behaviours of all employees. A frequent theme in the strategic management literature during the 1990s was the challenge to manage the balance between stability and flexibility (Lindgren, 2002).
This requires a common language and code of conduct within the team. A completely new team that has never sailed together before is unlikely to be as successful in responding in a rapid and coherent way as a team with long experience of sailing together that has established a common value system and patterns of communication and action. This metaphor of the yacht pitting itself against the elements as well as competitors may be a more appropriate metaphor for the present knowledge-intensive company, living with uncertainty rather than adopting a militaristic perspective.