In this paper it is argued that, to explain why whole groups of once-successful firms in a particular nation or region fail to react appropriately to new competitive conditions, we need to take a closer look at the people who devise and implement corporate strategies. That is to say, we need to analyze corporate strategists as social agents in a particular time and place, and try to understand what aspects of their social being might tend systematically to produce inappropriate corporate strategies. The argument centers on questions of power and identity and on how these shape knowledge and the ability to act. In this way an explanation of the origins and the power of the managerial commitments that shape strategic decisions is sought.
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