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Strategy as Activity System: A Review and Conceptualization
Conference paper

Strategy as Activity System: A Review and Conceptualization

Daniel Albert
Academy of Management Annual Meeting Proceedings, v 2014(1), p11900
Jan 2014

Abstract

Scholars have used the notion of activity systems to study and illustrate several phenomena in strategic management, such as competitive advantage, adaptation, and evolution over time. However, prior literature does not agree on a consistent definition or methodological approach of studying activity systems. Hence, in this article I review and analyze the existing literature to identify three constituting elements and their relation with interdependency and interactions. (1) Core-elements define a firm’s higher-order strategic themes, which are carried out by a set of (2) activities, which constitute economic processes of value creation. (3) Policies determine the rules interdependent activities are required to follow to coordinate the value creation in the activity system. The three elements represent different levels of an activity system and determine its overall interdependency design. Integrating the elements and their respective roles they play in an activity system helps to shed light on firms’ sources of competitive advantage, ability to adapt to changes in the environment, and evolution over time. The central insights from this review and conceptualization are translated into baseline propositions and future research directions.

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