Strategic adaptation as a partially rational process

Limits to the action of strategic adaptation derive essentially from the temporal and dimensional complexity of the system of the firm. Consequently, a ‘temporal/organizational area decision-making matrix’ has been developed and decisions classified accordingly. Problem-solving approaches adopted in facing complexity and uncertainty appear to be based mainly on the criterion of simplification and on that which ensues of decomposition. Measures currently applied in the process of simplification are examined, including utilization of models. Extra-rational or even irrational elements intervene in the process of strategic adaptation, caused primarily by complexity and by the social-heuristic nature of planning. Basic areas in which extra-rational elements (such as personal opinions, imagination and intuition) play an essential role are singled out and appropriate organizational mechanisms are identified which could assist in attaining the maximum synergic effect from the combined application of rational and extra-rational contributions to planning.