Open strategy: role of organizational democracy

Purpose A core premise of the paper is that participative, democratic organizational forms have a direct effect on openness. A key proposition is that organizational forms that promote inclusion, transparency and shared decision-making more broadly as part of their structure and culture would enhance greater openness. However, democratic forms are not a panacea when it comes to openness, there are inherent paradoxes, leading to inevitable tradeoffs that democratic organizations must manage. Design/methodology/approach The theoretical framework in the study explores the interaction between open strategy making and organizational democracy. This paper reviews the literature on open strategy and organizational democracy and presents propositions linking openness and elements of democratic organizations. Findings Open strategy requires a level of inclusion and transparency not typically associated with hierarchical organizations. This paper proposed that an organizational context where there are institutionalized processes that promote both transparency and inclusiveness, shared decision-making and a supportive organizational culture would promote openness. At the same time, these organizations need to manage key paradoxes associated with organizational democracy to benefit from its positive effect on openness. The idea is not that hierarchies cannot be open; they may simply need to be more creative and work harder at providing the scaffolding for participation. Originality/value This paper discusses the link between open strategy and organizational democracy. The research sheds light on how organizational forms, specifically structure affects openness, as well as the limits to structure and openness.