Abstract
Normative business policy literature assumes a rational-analytical response of organizations to environmental changes. Through a case study of an organization that faced structural changes in its environment and viewing it through cognitive and sociological perspectives in addition to the rational perspective, certain fundamental barriers to strategic changes are identified. These are: prevalence of strong and dominant values in the organization, inability to see threats from the environment when they go against the prevalent beliefs of the key members, the past history, and the social system of the organization. How managers can overcome or minimize the effect of these barriers so that they can make quicker and better strategic responses is also discussed.
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