Emerging strategies in a network context: The Volvo case

Abstract

Recent management theories introduce a distinction between strategy as intended and strategy as realized. This point is discussed here with reference to the development of the production system of the Swedish automobile manufacturer Volvo. The observed difference between intended and realized strategy is explained in terms of networks. Firms are linked together in networks, and the interactions between them provide opportunities while also limiting the available scope. The “official story” of the Volvo company is compared with a description of the way in which the realized strategy evolved. Particular attention is paid to the description of the competitiveness of the company as it accords with the network approach, which is the present focus of interest.