Does “Open Strategy” improve employees’ knowledge of strategy? A quantitative study

Abstract

Purpose

Recent research has highlighted limited explicit knowledge of a company’s strategy on the part of its employees. The concept of Open Strategy has emerged as a promising approach to address and enhance knowledge and understanding of an organization’s strategy across all hierarchical levels. However, empirical investigations of the relationship between the degree of openness in a strategy process and employees’ strategy knowledge remain scarce. This study aims to fill this gap.

Design/methodology/approach

We conducted an online survey of individuals from various organizations, measuring the degree of openness of their strategy process and using regression analysis to determine the impact on strategy knowledge among the respondents. We operationalized strategy knowledge using two concepts. The first concept encompassed general knowledge of the employer’s strategy, mission, and vision. The second concept measured strategy knowledge in a more concrete manner by assessing factors such as the company’s markets, how it positions itself and its economic logic.

Findings

Our findings indicate that regardless of the level of hierarchy, the degree of openness has a strong positive effect on strategy knowledge. However, this effect is smaller when specific aspects of strategy knowledge are assessed compared to a general understanding of strategy. Our results highlight the potential of Open Strategy as an effective approach to enhancing employees’ knowledge of the employer’s strategy.

Originality/value

Our research demonstrates that the degree of openness in strategy processes significantly enhances strategy knowledge, thereby laying the groundwork for effective strategy implementation. The results highlight the importance of cultivating a culture of transparency, participation and inclusion of employees as well as ongoing communication to effectively integrate strategy into organizational practices. We offer practical implications for managers striving to optimize their strategic management processes.