This study evaluates the relevance of contingency under ontological and modal logical aspects for strategic corporate management. To emphasize the relevance of this approach, current conditions in economy, society and science are described in a context which leads to the problem statement. The meaning, purpose and structure of strategic corporate management is shown to provide an overview of the key elements that are relevant for this study. In this context, the contingency approach is differentiated from the well-known situational approach (contingency approach), that was developed in the 60s of the 20th century by British and American scientists.
The more general meaning of contingency is analyzed under ontological aspects by using the essential core of Richard Rorty's theoretical approach on contingency which leads to the most relevant factors: luck and serendipity. The theoretical and fundamental significance of this evidence for strategic corporate management is subsequently shown by two empirical examples. This practical view provides the contextual relevance and shows why the approach and statement of this study can be considered as the most relevant for the first major success and economic breakthrough of the chosen examples: Facebook Inc. and Google Inc. A conclusion finally recommends awareness to consider contingency in strategic findings under the premises of strategic foresight.
Table of Contents
1. Introduction and Problem Statement
2. Approach and Objectives
3. Strategic Corporate Management and the Theory of Contingency
3.1. The Nature of Strategic Management
3.2. Contingency and Strategy
4. Empirical Examples
4.1. Facebook
4.2. Google
5. Conclusion
Research Objectives and Themes
This study evaluates the relevance of contingency, specifically focusing on the roles of luck and serendipity, within the field of strategic corporate management. It aims to challenge deterministic management theories by analyzing the early, highly contingent stages of successful enterprises to demonstrate that initial breakthroughs are often driven by accidental circumstances rather than purely calculated strategies.
- Theoretical analysis of contingency vs. situational approaches
- Critique of deterministic models in strategic management
- Examination of Richard Rorty’s ontological perspective on truth
- Case study analysis of the early development of Facebook Inc.
- Case study analysis of the genesis of Google Inc.
Excerpt from the Book
4.1. Facebook
It all began in October 2003, when Mark Zuckerberg, a sophomore at that time, developed a site with the name Facemash. On this site, he posted pictures of coeds from nine dormitory houses from the campus of the university where he studied (Focus 2010). It was a page with a public rating system for the look of young women. The pictures, which Zuckerberg got, were stolen by hacking Harvard's computer networks and copying campus ID photographs (Ballard 2012, p. 29). The site can be recognized as a sensation at that time with hundreds of users and thousands of hits. The entire concept of this first site - considerably different from Facebook.com nowadays known - was probably reasoned by the fact that
Chapter Summary
1. Introduction and Problem Statement: This chapter introduces the paradox of causality in business success, arguing that while literature often relies on deterministic frameworks, the actual role of luck and serendipity in strategic outcomes is frequently underestimated.
2. Approach and Objectives: The chapter defines the research goal, which is to analyze the relevance of contingency under ontological aspects for strategic corporate management, using the early developmental stages of Facebook and Google as primary empirical examples.
3. Strategic Corporate Management and the Theory of Contingency: This section elaborates on the nature of strategic management and the origins of the contingency approach, questioning the traditional reliance on rigid models to simplify complex business environments.
4. Empirical Examples: This chapter applies the contingency theory to the early histories of Facebook and Google, illustrating how accidental events and unplanned circumstances played a decisive role in their initial economic breakthroughs.
5. Conclusion: The concluding chapter synthesizes the findings, asserting that contingency must be accepted as a factor in early-stage company development and recommending that strategic foresight should account for these unpredictable, random variables.
Keywords
Contingency, Strategic Management, Luck, Serendipity, Facebook, Google, Determinism, Business Strategy, Entrepreneurship, Complexity, Ontology, Strategic Foresight, Randomness, Corporate Success, New Economy
Frequently Asked Questions
What is the core focus of this work?
The work focuses on the role of contingency—specifically luck and serendipity—in the strategic management of corporations, challenging the view that success is purely a result of deterministic planning.
What are the primary themes discussed?
The central themes include the critique of traditional strategic models, the philosophical basis of contingency theory, and the empirical analysis of why major tech companies succeeded in their early stages.
What is the primary research objective?
The objective is to evaluate the relevance of contingency under ontological and modal logical aspects to prove that unforeseen factors are crucial components of initial corporate success.
Which scientific methods are employed?
The study utilizes a literature-based analysis of established management theories and a qualitative, empirical review of the early development phases of Facebook and Google.
What is covered in the main body?
The main body covers the definition of strategic management, the differentiation between situational and contingency approaches, and a detailed look at the accidental breakthroughs of Facebook and Google.
Which keywords characterize this study?
Key terms include Contingency, Strategic Management, Luck, Serendipity, Determinism, and Strategic Foresight.
How does the author define the role of luck in business?
The author argues that luck, or serendipity, is an often overlooked factor in successful ventures, especially in early stages where established structures and processes are still absent.
Why are Facebook and Google used as examples?
They are chosen because they serve as modern symbols of immense success, yet their origins reveal that their initial growth was deeply tied to contingent circumstances rather than purely strategic design.
What conclusion does the author reach regarding strategic management?
The author concludes that managers should develop an awareness of contingency and "weak signals" in their market environment, as reality remains inherently uncertain and cannot be fully captured by static models.
- Quote paper
- Heiko Schmolke (Author), 2015, Contingency of Strategic Corporate Management, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/469317
