Open Strategy: A Modern Approach to Strategy Formulation – Theory and Practice
Purpose: This article aims to review and synthesize world research related to Open Strategy, a contemporary concept of inclusive and transparent strategy formulation, selection and implementation. The trend of openness, with its hallmarks of transparent access to information and the demand for stakeholder inclusion, has become a global social expectation in almost all dimensions of life, including strategy development. At the same time, the need to reconcile effectively multiple stakeholders’ interests and still be able to build coherent strategy remains the field of focus for scientists and business practitioners. Open Strategy may help to solve this dilemma and become an efficient framework for building coalition of interests among multiple stakeholders. Design/Methodology/Approach: This study employs a systematic literature review (SLR) with bibliometric analysis to identify genesis and key characteristics of OS concept. Comprehensive analysis of most relevant articles from top rated journals has been applied to understand scientific achievements of this research stream and implications of OS concept to strategy practice. Findings: The analysis reveals Open Strategy brings fundamental changes to strategy process and is the opposite of the classic strategy development. Its attributes alter from "confidential" and "exclusive for top management" to "transparent" and "inclusive". In the research we raise two questions: RQ1 What are the genesis and characteristics of OS?and RQ2 What are the changes OS concept is bringing to the process of strategy formulation and selection?We respond to the first question with systematic literature review (SLR) of OS research published between 2007 and November 2024, identifying key contributors (researchers and research centres) and key attributes of the concept established. We leverage bibliometric analysis of key words clusters to identify key themes and connections. Based on this we elaborate on the concept, analyse seminal works and identify connected research streams. They are centered around open innovation, transparency, inclusion, strategy as practice and recently collaborative governance. Practical Implications: Inclusion of stakeholders and transparency of information form major expectations towards company governance in the modern economy. As the review presents, openness in strategy process can bring many benefits but carries certain risks at the same time. Executives need to build their understanding of Open Strategy to balance openness and closure depending on the business situation. Originality/Value: This study provides the comprehensive analysis of Open Strategy, its characteristics and practical implications.