Keywords: information, knowledge, strategy, paradigm, dominant logic, culture
Assume the ostrich position: how companies ignore information
The ability of companies to respond to external influence is at the heart of strategy. Indeed, the speed and nature of responses may well be a determinant of success. Why is it then that companies continue with strategies that are clearly not working and the available evidence for change is ignored? It is only by understanding the prevailing culture and its effect on strategic thinking that the response of firms to the environment can be understood. In particular, the influence of culture as a paradigm or dominant logic on strategy is investigated by analysing a company that, despite available evidence, continued its strategy until taken over. The conclusion is that information needs to become knowledge to effect change and that knowledge is information that has become culturally accepted in the organisation.