The power of alignment: Conceptualizing strategy-identity alignment in Dutch energy companies

Academic Abstract

The Dutch energy transition creates significant challenges for energy companies in the Netherlands because they need to reevaluate their strategies (what they do) and identities (who they are). They are required to explore new and sustainable sources of energy, as well as efficiently exploiting old sources of energy. The energy transition also prompts a reevaluation of what defines an energy company. When strategy and identity are not aligned, strategic renewal and organizational change are deemed to fail. To better understand the alignment between strategy and identity and its consequences for Dutch energy companies, this chapter develops a theoretical framework based on the extent to which organizations engage in entrepreneurial or conservative strategies and maintain innovative or traditional identities. The strategy-identity matrix identifies four distinct forms of strategy-identity alignment: illusionists, custodians, pioneers, and reformists. By using this framework to classify the strategy-identity alignment of Dutch energy companies, this chapter shows that organizations can align or misalign their strategies and identities in different ways. We discuss the implications of the strategy-identity matrix for theory, practice, and the Dutch energy transition.

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