The role of organizational identity on strategic management applications

Abstract

The new millennium started with evident hints that strategic management is one of the most required skills for business success. Previous research has shown that as a competitive advantage factor, organizational identity affects strategic thinking, planning, decisions and actions. Based on the past research, at the core of this chapter lies the idea that organizational identity can act as a detector for identifying strategic issues and can be an influential factor in developing strategies in response to change. Moreover, a strong organizational identity is a valuable organizational capability that can create competitive advantage through its urge to adapt to changes. Conversely, a loose identity is weak in detecting changes or threats directed to the organization. Thereby, the chapter focuses on the interaction between identity and strategy when organizations face challenges in the turbulent business environment.