A review of the strategy formation process: Empirical evidence from the IT sector in Serbia

In this paper, we survey, classify and synthesize different theoretical concepts and empirical studies that examine the nature of the strategy formation process. The paper starts by providing multiple points of view on the notion of strategy. It continues by explaining the possible sources of strategy formation. Furthermore, the elaborated insight on the nature of strategy formation process is given. In order to confirm the presented theoretical background, the case study of two IT companies is presented in the end of the paper. Some of the conclusions are that strategy can start its formation anywhere within an organization, but the main craftsmen are the members of senior management team. Strategies are forming along the emergent-to-planned continuum and the part on the continuum on which the strategy-making will take place depends on a variety of factors. Finally, two companies presented in the case study confirm the presented theoretical framework of strategy-making.