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Reversing the Spirituality Lenses:
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Level of Analysis |
Selected Topics Related to Strategy |
Selected Scripture References Reflective of the Level |
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Individual |
CEO characteristics and firm performance Executive Selection and Compensation Knowledge Management |
Creation (Genesis 1,6) Joshua’s succession of Moses (Numbers 27:12-23; Deut. 31:1-8) Selection of King Saul (I Samuel 9-10) Solomon’s succession of David (I Kings 1-2) Jesus’ calling and training of the disciples (Matt. 4:18-22; 9:9-11; 10:1-41; Mark 1:14-20; Luke 6:12-16) Saul’s conversion (Acts 9:1-31) |
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Groups of Individuals |
Ownership Concentration Top Management Teams Boards of Directors Strategic Leadership Resources |
Jethro’s counsel to Moses (Exodus 18) Jesus’ focus on Peter, James, and John (Mark 9:2-12; John 21:15-25) The Apostles (Acts 1:12-26; 15:1-41) Spiritual Gifts (I Cor. 12) Slaves and Masters (Eph. 6:5-9; Col. 3:22-4:1) |
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Firm: Business Unit |
Generic Strategies Cooperative Strategies Capabilities Organizational Structure Strategic Planning |
The Tower of Babel (Genesis 11:1-9) Construction of the temple and Solomon’s palace (I Kings 6-8; II Chronicles 2-7) Rebuilding the temple and temple wall (Ezra 3-6; Nehemiah 1-6) Jesus, John the Baptist, and their disciples (Matt. 11:1-15; Luke 1:39-45; John 1:19-28) The sending out of seventy-two (Luke 10:1-24) Development of the early church (Acts 2:42-47; 6:1-7) |
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Firm: Corporate Level |
Diversification Mergers and Acquisitions Cooperative Strategies Core Competencies M-Form Organizational Structure Strategic Planning |
Parable of the shrewd manager (Luke 16:1-14) Ministry broadened to include Gentiles (Acts 15:1-35) Exhortations to various churches (Revelation 2-3) |
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Industry |
Competitive Dynamics and Interfirm Rivalry Strategic Groups Five Forces Model Environmental Analysis |
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Country |
International Strategy International Diversification |
Egypt and Israel (Exodus 4 – 14) Israel and the Philistines (I and II Samuel) |
Another challenge common to strategy, spirituality and religion in general is the role that unobservables may play in explaining the phenomena (Fornaciari & Dean, 2000; Godfrey & Hill, 1995). This problem has gained increasing attention in the field of strategy largely due to the increasing attention given to the resource-based view (RBV) of the firm (Barney, 1991), and accentuated by the emerging role that knowledge-based advantages play in the development of this view (Grant, 1996b; Nonaka, 1994). Resource and knowledge-based perspectives have contended that competitive advantage is gained by combining tangible resources with intangible or tacit resources (Polanyi, 1962) in such a manner that produces capabilities that are valuable, rare, inimitable, and non-substitutable (Barney, 1991, 1995; Grant, 1991). Therefore, there is both an observed (superior performance, presence of certain resources) and an unobserved dimension (capability development process, application of individual knowledge, etc.) of the phenomena. While this view has been criticized for using tautologous definitions and imprecise construct validity (Priem & Butler, 2000; Williamson, 1999), recent work suggests that these concerns can be addressed. Some of these suggestions from this recent work include examining the common use of dynamic capabilities among firms and examining idiosyncratic details of the building and application of those capabilities to determine possible sources of competitive advantage (Cockburn, Henderson, & Stern, 2000; Eisenhardt & Martin, 2000).
Reliance upon unobservables is also a tenet of Christian scripture. Biblical characters and believers are exhorted to exercise faith when pursuing a course of action while external circumstances do not necessarily warrant such confidence (Numbers 13:26-33, 2 Cor. 5:1-10). Like resource and knowledge-based perspectives, this faith combines an observable activity (human behaviors and/or application of physical resources) with an unobservable element (angelic or divine intervention), with the key difference being the possible attribution to the source of the unobservable activity (Polanyi, 1962). Since this observable-unobservable combination seen in strategy theory is comparable to that in Christianity, it does raise a key question. With the concerns already present about the inability of strategy researchers to measure tacit knowledge (Godfrey & Hill, 1995; Williamson, 1999), is it prudent for the field to rely even more on unobservables by developing their discipline based on a spiritual tradition so highly dependent upon them?
This concern is mitigated by the fact that strategy by its nature is concerned with the future of the organization (Rumelt et al., 1994). The concepts of trying to create sustainable competitive advantage (Barney, 1997), responses to competitive actions (Chen, 1996; Ferrier et al., 1999; Mosakowski & Earley, 2000), and strategic change (MacIntosh & MacLean, 1999; Zajac, Kraatz, & Bresser, 2000) are all driven by the possible attainment of some desired future state, or vision, for an organization. And while organizations may desire certain future conditions, they can’t say with complete confidence that present actions will produce them. So in essence, by pursuing actions in an attempt to secure a positive future, organizations are demonstrating faith through acting upon their strategies much like the Christian does, it is only the objects of that faith that may be different (Neal et al., 1999). Therefore, while the reliance upon unobservables may be uncomfortable for some, it does not by itself rule out the possibility of observing and critiquing strategy from a Christian perspective.
In the next section of this paper, I suggest some possible ways that strategy may be observed and critiqued from a Christian perspective. These ideas include the possibility that the firm may not always be the most appropriate level of analysis, the use of theories that incorporate multiple levels of analysis to examine phenomena, and the consideration of fields that intersect strategy that also have a spiritual dimension.
One of the current issues that simultaneously makes strategy research both more challenging and more interesting is the impact of the blurring of traditional organizational boundaries (Lewis, 2000; Lowendahl & Revang, 1998). This impacts the field of strategy by bringing into question whether the firm should continue to be the focal level of analysis (Rumelt et al., 1994). For instance, having the firm serve as the focal level of analysis has impeded consideration that resources and capabilities necessary for advantage could be derived from outside the firm since networks can serve as a base for a much wider diversity of knowledge (Dyer & Singh, 1998; Gulati, 1999; Gulati, Nohria, & Zaheer, 2000). This blurring of organizational boundaries is making it increasingly difficult to define a firm and establish organizational identity (Albert, Ashforth, & Dutton, 2000; Gioia, Schultz, & Corley, 2000). As a result, the idea of what constitutes the firm is increasingly reliant upon the perspective of various stakeholders (Pratt & Foreman, 2000; Scott & Lane, 2000). Since external stakeholders are increasingly driving the definition of organizational identity, levels of analysis below the firm level may now be considered as the firm, or at least as a representation of it (Pratt & Foreman, 2000).
In the context of the concern over levels of analysis discussed earlier in this paper, this re-conceptualization of organizational identity allows for the relatively rich base of normative characteristics of individual and group behavior provided by scripture to be incorporated into analysis at the firm level. Scripture addresses issues related to strategy such as conduct at the individual and group levels (Eph. 4:25-32; Acts 15) superior-subordinate relationships (Col. 3:22-4:1), interpersonal communication/conflict resolution (Proverbs, Acts 15; Muehlhoff, 2000), conduct based beyond self-interest (Phil 2:5-8), conduct that reflects positively upon God (I Cor 10:31, I Thess. 4: 11-12), striving for continuous improvement (Gal. 6; Phil 3:7-16 – addresses the concerns of the satisficing principle of learning (Winter, 2000)), encourages diversity (Acts 10: 27-28; 34-35; Col. 3:9-11), acknowledgement and valuing of differing individual talents and gifts (I Cor. 12; Rom. 12:3-7; Eph. 4:11-13), and leadership selection and succession (Numbers 27:12-23; Deut. 31:1-8; I Samuel 9-10; I Kings 1-2). Another implication of this reasoning is that scriptural perspectives can also be considered in the field of strategy by examining lower level of analysis components of higher level of analysis topics, such as individual and group behavior in alliances and networks (Gulati et al, 2000; Kale, Singh, & Perlmutter, 2000; Tsai & Ghoshal, 1998) or senior management behavior in mergers and acquisitions (Datta, Narayanan, & Pinches, 1992; Hitt, Hoskisson, & Ireland, 1990; Johnson, Hoskisson, & Hitt, 1993). Therefore, while scripture may not directly speak to all levels of organizational analysis, there are ample areas within these levels of analysis that can be considered scripturally.
This reconceptualization of the universally appropriate level of analysis would likely carry at least one benefit from a spiritual perspective. While not absolutely required (Rumelt et al., 1994) the focus on the firm has tended to concentrate the traditional domain of strategy on for-profit organizations since measures of competitive advantage tend to be more defined and explanations for performance-based differences between firms has long held interest of strategy researchers (Dyer & Singh, 1998). However, these characteristics are not usually associated with the organizational embodiments of the Christian faith, churches and parachurch organizations. While competition between churches for members and other resources may exist, an environment of co-opetition (Afuah, 2000) may better describe relationships between churches given that they operate from common scriptural commands as to their role within society (Matt. 28:18-20; I Cor. 11; Eph. 4: 1-16). Moving to other focal points such as senior leadership teams, networks of churches, or a combination of these two points would allow for the consideration that resources and capabilities necessary for advantage could be derived from outside the firm. Therefore, since networks serve as a base for a much wider diversity of knowledge (Dyer & Singh, 1998; Dyer & Nobeoka, 2000; Guillen, 2000; Gulati, 1999; Gulati et al, 2000; Human & Provan, 1997), they may be a more appropriate research focal point since they would allow churches to simultaneously pursue both their individual and collective objectives.
Another way that scriptural level of analysis concerns could be addressed is by considering theoretical perspectives that encompass multiple levels of analysis. In the field of strategy the perspective that best captures this characteristic is the RBV (Barney, 1991; Grant, 1991). Traditional resource-based theory holds that all firms are idiosyncratic and are comprised of somewhat ‘sticky’ bundles of resources, with resource heterogeneity and inimitability leading to inter-firm performance differences (Amit & Schoemaker, 1993; Barney, 1991; Conner, 1991; Penrose, 1959; Szulanski, 1996). Successful firms are able to arrange and combine their resources in ways that create unique value-adding capabilities. This added value often translates into competitive advantage and, therefore, abnormal returns (Amit & Shoemaker, 1993; Grant, 1991, 1996a; Peteraf, 1993).
Resource-based theorists have argued that resources are "bundled" from an individual level up to the organization level (Conner & Prahalad, 1996; Grant, 1996a; 1996b). At the individual level of analysis, resources consist of the skills and primarily the knowledge of the individuals within the organization. Knowledge-based theory contends that firms are a collection of tacit and explicit knowledge. Tacit knowledge is knowledge that cannot be explicated fully even by an expert and can only be transferred from one person to another through a long process of apprenticeship (Polanyi, 1966). Explicit knowledge, on the other hand, is knowledge that is relatively easy to articulate and communicate (Nelson & Winter, 1982; Nonaka, 1994). Whereas tacit knowledge is firm or person specific, explicit knowledge is relatively easy to transfer between individuals and organizations. Explicit knowledge resides in a firm’s policies, operating procedures, and technical documents (Nelson & Winter, 1982). These individuals and their knowledge are then combined with tangible resources to form integrative knowledge and capabilities (Brush & Artz, 1999; Miller & Shamsie, 1996; Teece, Pisano, & Shuen, 1997) at the sub-firm or groups of individuals level of analysis. If these capabilities meet the criteria of being valuable, rare, costly-to-imitate, and nonsubstitutable (Barney, 1995), then the capability becomes an organizational level core competence (Lei, Hitt, & Bettis, 1996; Prahalad & Hamel, 1990).
When reversing the spirituality lenses, it becomes evident that several aspects of resource-based theory are highly consistent with Christian scripture. In fact, Polanyi’s (1962) seminal work on personal knowledge likened the pursuit and development of tacit knowledge to Christian themes such as miracles (p.284), personal calling (p. 322), the process of the fall and redemption (p. 324) and to a Christian worshipping God (pp. 198-99, 405). The resource- and knowledge-based views’ emphasis on the value of individual knowledge, collective knowledge (routines), resource hetereogeneity, and intangible resources (particularly in turbulent external environments (Miller & Shamsie, 1996) reflect a strong emphasis on the value of people in an organization. This value and emphasis upon the uniqueness of individuals is emphasized in scripture by the exalted position of people in general (Genesis 1; Psalm 8), God’s handiwork in creating the uniqueness of each person (Psalm 139; Matt. 10:29-31), that personal transformation begins internally and manifests itself externally (Matt 15:10-20; 23:25-28), and the knowledge with which God has entrusted to believers (Eph. 1, 1 Cor. 2:10-16). In addition, the idea of bundling and organizing resources implies the need for people involved in these processes to have some sense of trust and community if these efforts are to result in the development of capabilities (Barney & Hansen, 1994; Daniels et al., 2000; Dyck & Schroeder, 1999; Gulati, 1995a: 1995b; Helfat & Raubitschek, 2000; Kogut & Zander, 1996; Leonard & Sensiper, 1998; Nonaka, 1994; Polanyi, 1962; Tsai, 2000; Tsai & Ghoshal, 1998). Scripture provides several prescriptions for orderly living in community with others in organizational contexts (Nehemiah; Acts 15; I Cor. 14; Eph. 4:1-16). Some of these prescriptions include coordination of activity (Nehemiah 3; I Cor 14:26-39), the positioning of people in the organization according to their skills and abilities (Eph. 4:11-16), and development of a sense of community within the organization (Acts 2: 42-47).
The consistency of the underlying assumptions of resource-based theory with scripture raises some interesting implications for evaluating other perspectives of competitive advantage from a scriptural perspective. For instance, resource-based theory is often compared with either transactions-based (Combs & Ketchen, 1999; Conner & Prahalad, 1996; Williamson, 1999) or industry structure-based (McGahan & Porter, 1997; Peteraf & Shanley, 1997) perspectives and the result has prompted calls for further research that integrates these perspectives (Combs & Ketchen, 1999; Gulati et al., 2000; Henderson & Mitchell, 1997; McEvily & Zaheer, 1999). From the Christian perspective, these attempts at integration and/or convergence suggest that these other perspectives should be examined on the basis of their consistency with Christian scripture, either directly or from inference based on the elements of levels of analysis embedded into them which are addressed directly by scripture.
Another way strategy could be examined from a Christian perspective is by examining the intersection of the field with other research literatures that focus more on the levels of analysis directly addressed by scripture or whose characteristics are highly consistent with scriptural principles. One example is the burgeoning literature on entrepreneurship. Strategy and entrepreneurship are increasingly intersecting in their domains in areas such as innovation, organizational networks, top management teams, and growth and change (Hitt & Ireland, 2000). Entrepreneurship’s focus on issues such as new venture initiation (Gartner, 1985; Shaver & Scott, 1991; Vanderwerf, 1993) corporate entrepreneurship (Barringer & Bluedorn, 1999; Zahra, 1996), entrepreneurial behavior (Covin & Slevin, 1991; Lyon, Lumpkin, & Dess, 2000; Miller, 1983) and the management of growth (Hambrick & Crozier, 1985; Fombrun & Wally, 1989; Galunic & Rodan, 1998) provide areas that could also be considered from a Christian perspective.
Whether examined in the context of new ventures or as corporate venturing, the concept of entrepreneurship has historically been driven by the ideas of creation and/or renewal (Penrose, 1959; Kirzner, 1973; Schumpeter, 1934). The themes of personal and societal creation and renewal also are mentioned throughout scripture (Genesis 1, 6; Nehemiah; Ezra; Luke 6: 12-16; Acts 2; 2 Cor. 5:11-6:2; Rev. 21). This suggests that the idea of continuous organizational renewal fueled by the embrace of paradox and pluralistic perspectives as advocated in recent works (Eisenhardt, 2000) may well be consistent with scripture. These perspectives suggest that organizations need to have a plurality of knowledge in content and forms rather than focusing on a single stream because diversity in these areas will yield multiple perspectives on the road to long-term competitive advantage (Glynn et al., 2000; Leonard-Barton, 1992; Miller & Chen, 1996). Therefore, simultaneous exploration and exploitation for all organizations may be a necessary condition of long-term competitive advantage and survival (March, 1991; Tushman & O’Reilly, 1996).
This paper has attempted to open the door for the discussion of spirituality within the field of strategy, with particular emphasis on the Christian faith tradition. As a result, there are numerous future directions that this discussion can take. I will identify some of these directions below with suggestion for the topic of spirituality in general and for Christianity in particular.
In terms of the domain of the topic of spirituality, this dialogue needs to be encouraged to include a broader view. This broadening could be done by examining the field of strategy from both other religious perspectives (ConsultingSpirit, 2000; Marcic, 2000) and non-religiously oriented perspectives of spirituality (Harlos, 2000; Schmidt-Wilk, Heaton, & Steingard, 2000). This view can also be broadened to include input from other disciplines such as philosophy, theology, and the physical sciences (Wilber, 2000). If for no other reason than to ensure that thinking on the field of strategy will not be conducted exclusively through the lens of economics (Rumelt et al., 1994), broadening this dialogue serves a useful purpose.
While broadening the dialogue is a useful next step, there is also value in deepening thought toward further development of a "Christian" perspective of theory in strategy. Since this paper has identified some ways in which Christian thought might be used, just what might a Christian theory of strategy look like? There are a number of questions that can be addressed from this line of inquiry. For instance, does the primary unique characteristic of Christianity, the contention that a relationship with God is based upon grace due to the substitutionary death of Christ rather than the deeds of the individual (Eph. 2:1-10; Gal. 3:10-14; Rom. 5), have any unique implications for how we view strategy? If not, then the effort to integrate spirituality into strategy becomes much more generalizable, and the relationship between spirituality and strategy could be examined in a more generic sense (Barnett et al., 2000; Mitroff & Denton, 1999). However, if this uniqueness does make a difference, then a full-fledged equivalent of a comparative religions course could be waged in strategy research, where the tenets of a variety of faiths would need to be operationalized so that comparisons could be conducted to determine which, if any, faith perspectives are most associated with competitive advantage and organizational performance.
There are also a number of questions that can be addressed within the present domain of strategy. Is strategy from a Christian perspective purely resource and knowledge-based, or do other variables such as opportunism or industry forces need to be included? If so, how should they be addressed? Since resource-based theory appears to have many consistencies with scripture, how might it be used to explain variations in performance between churches or parachurch organizations? Is it possible to develop a Christian perspective on interfirm rivalry? Does a Christian perspective result in different conclusions on rationale for diversification or acquisition decisions? How does a Christian view go beyond other views on corporate social responsibility?
Lastly, are there more effective ways to manage the problem that "unobservables" bring to strategy research (Godfrey & Hill, 1995)? Consideration of these questions will almost certainly encourage the use of combined quantitative and qualitative research methodologies that have recently been called for by strategy researchers (Hitt, Gimeno, & Hoskisson, 1998; Hoskisson, Hitt, Wan, & Yiu, 1999). Overall, these questions suggest that there is an abundant field of research for those interested in pursuing these topics.
This paper has considered the possibility that spirituality might be a valuable perspective to be considered in strategy research. After addressing two initial concerns, lack of direct coverage in all levels of analysis and a reliance upon unobservables, I then identified some areas where the Christian faith tradition may share commonalities with various streams of strategy research. The idea of examining strategy from a spiritual perspective is a new one, but there is certainly rationale for it from historical works that are driving recent research in the field (Polanyi, 1962).
The paper certainly suggests that consideration of spirituality would be a welcome addition to strategic management research. If just looking at one perspective of spirituality, as I did in this paper, could generate so much potential inquiry, just imagine the research opportunities that would result from considering multiple perspectives of spirituality. A broader, richer conceptualization of strategy would be the likely result.
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