Acceptance and Use of Strategic Processes in Developing Countries

Abstract

Problem statement: The concept of strategy has become a major process in for-profit and not-for-profit organizations. These organizations have used the process to understand issues which they cannot control but have a significant impact on their success and use their limited resources and competencies to improve their competitive positions. The process was used in developed economies and primarily by businesses with large scale operations. The purpose of this study is to extend the previous findings by examining the nature and practice of strategic planning in a different environmental context, that of the developing transitional economy of Turkey. Approach: The literature review was conducted to explore the usage of strategic processes in developing countries. The research which includes 71 companies was also conducted. Our research sample was drawn from the Istanbul Chamber of Industry database which listed the top 500 manufacturing firms. The frequency distribution analyses were conducted to the data. Results: Our results clearly showed that the managerial skills and competitive processes used by the domestic organizations are evolving and will create significant competitive challenges for the new entrants into these transitory environments. The foreign owned firms adopt a broader and deeper repertoire of tools and techniques of strategic planning than do local firms. Conclusion: Even though the findings showed a significant increase in the importance and use of strategic tools and processes in Turkey, a transitional economy, they also showed that there are continuing major differences in the use of these same tools and processes between competing firms from a transitional economy Vs a developed economy. By identifying and documenting the levels of strategic process and the types of strategic tools employed by the companies in differing stages of transitory economies, we can develop a roadmap and incorporate this knowledge to educate and prepare the managerial talents in these economies.