Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

The Strategic Process in Large Ecuadorian Enterprises: A Case Study
Nájera, Santiago
CENTRUM GBS
D’Alessio, Fernando
CENTRUM GBS
Santiago Najera, Universidad Catolica del Ecuador, Quito/Pichincha/Ecuador/EC17013, 593-9875948
ABSTRACT
This study focused on large companies in Ecuador,
describing different aspects and responsibilities for the
strategic process within the companies studied. The
results show that the strategic process is not generalizable
among these companies; however, there are certain
similar characteristics that allow for a generic model.
This research also contributes to the literature regarding
strategy formation showing that, in the case of Ecuador,
strategies are typically formed in upper management.
That is in marked contrasts with the proposition that the
process begins with middle managers, as other authors
maintain. In the present investigation, the case method of
study was used.
Background of the Problem
The implementation of strategy as a way to control
market forces and shape a competitive environment
began to emerge in the second half of the nineteenth
century [1]. The invisible hand described by Adam Smith
(1776) was gradually shifting to the visible hand of
managers [3]. However, in the vast majority of cases, the
research underlying these papers was conducted in
developed countries; their reality and particular
characteristics differ markedly from those of developing
countries and emerging economies. However, in Latin
America, published strategy research is scarce, so there is
limited information about it.
Research Questions
The main research question is: How strategies are
generated and implement at the Ecuadorian companies?
It is important to determinate too: (a) how strategies are
generated within companies; (b) there is a general rule or
methodology within the companies; (c) people in charge
of generate strategies; (d) who approves strategies; (e)
how objectives and strategies are communicate to the rest
of the organization; and (f) how strategies are
implemented within companies.
Conceptual Framework
In most cases, strategic management can be defining as a
formal process that comes from senior management and
it is implemented by the middle management.
Nevertheless, some author suggest that this process
comes from middle management to be approved by
senior managers [4]. Also, other authors suggest that the
strategic process is a political process between different
agents inside the company [5].
Assumptions
This research assumes that success in the Ecuadorian
companies is the result of a correct formulation and
implementation of strategies within the company. It is
assumed that the strategic processes beginning with
concrete strategy formulation follow by their
implementation, the research seeks to understand how
this successful action are done and the key actions for the
success of these actions, at the same we seek to
understand the type of process followed during the
formulation and implementation of those strategies.
Limitations & Boundaries
For this research are planted the following limitations: (a)
no statistical generalizations; (b) field research and data
collection was done through in-depth interviews; (c) the
way in which the strategic management in made on
Ecuadorian Companies are defined by the informants; (d)
is not possible to confirm one hundred percent the truth
of the answers of the respondents.
The boundaries of this research are: (a) the study is
conducted in Ecuadorian companies filed in this country,
and the results are only valid for Ecuador; and (b) the
study analyzed only companies with at least four years of
existence. The study was conducted primarily in Quito
and Guayaquil, as these cities account for over 80% of
national trade [6] Additionally, the study does not
consider state-owned enterprises due to changes in their
strategies because of political changes.
Research Design
The purpose of the research is to describe how managers
of the Ecuadorian companies applies the concepts of
strategic management decisions. The research focuses on
how strategic decisions are taken at Ecuadorian
companies, and why the decisions are done in such
manner. The study is qualitative on nature by applying a
multiple case study research, a method that allows to
reconstruct events and experiences in which the
researcher cannot otherwise take part, and answer why
and how it happened [7][8].
Data Collection and Results
The investigation was conducted applying the case study
research method, comparing different cases in search of
similarities and differences among them, hence each case
it is an instrument of the global study [9]. After studying
21 companies the data was saturated showing that the
strategic process is a formal process that come from the
senior management and is execute by middle manager.
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