A recent study reveals the value of failed strategies in the development of enterprises and industries

A recent study shows that also failed strategies can launch significant strategic changes. The microhistorical research article authored by Juha-Antti Lamberg, Eero Vaara, Pasi Nevalainen and Henrikki Tikkanen examines two cases of the Nokia Corporation in the 1970s and 1980s, in which the planned strategic moves never materialised, but the anticipation and preparations involved led to new strategic directions.

From threats into opportunities

In the first case, Nokia thwarted the Finnish government’s plan to establish a new state-owned electronics company, transforming the threat into an opportunity that eventually led Nokia to undergo an intense transformation from a conglomerate to an electronics company.

In the second case, failed cooperation with the Swedish car manufacturer Volvo led to the establishment of a new research and development center which later became a major centre for the development of digital mobile technology and was thus an important asset in Nokia’s rise to a world-leading mobile phone manufacturer in the 1990s.

“These cases have earlier been ignored in Nokia’s history because they did not lead to the intended outcomes,” says Assistant Professor Pasi Nevalainen from the Department of History and Ethnology, University of Jyväskylä. “The state-owned electronics corporation didn’t come true, and Nokia didn’t ally with Volvo either.”

Strategic failures as catalysts for strategic reformation

The study demonstrates that strategic failures are not just past mistakes, but they can work as catalysts for new innovations and strategic reformation.

“Each new plan and development project opens a chance for internal fight for power within the organisation,” says Professor Juha-Antti Lamberg from the Jyväskylä University School of Business and Economics. “This is when expectations, the choices made by political coalitions and fortuitous developments lay the groundwork for strategy emergence, the development of unforeseen trends that are actually beyond anyone’s control.”

Drawing on rich archival data, the microhistorical approach revealed that feelings, expectations and the mobilisation of networks can change an organisation’s direction, regardless of whether the process is successful or not.

“The findings challenge the traditional view of strategic decision-making and emphasise the potential of failures for strategic learning and change,” says Professor Eero Vaara from the University of Oxford.

Significant strategy research from Finland

The recent study is a significant scientific breakthrough and commentary that presents strategy research in a more realistic and less deterministic light than earlier mainstream approaches.

“Based on professional experience, for organisations that create something new, it is inevitable to take obvious sidetracks that are recognisable afterwards from outside the organisation,” says Acting Head Of R&D Tomi Nokelainen from Framery Ltd. “Our study of these bypaths shows that, when used appropriately or by chance, they can create competencies or structures that open up significant opportunities later on. The study reinforces this experience in a fascinating and indisputable way.”

“It is encouraging that significant strategy research is being pursued in Finland,” says Nokelainen. “This research challenges the mainstream, taking it towards a more nuanced, realistic and practical direction.”

Numerous books and articles have been written about Nokia’s success in the 1990s, and in recent years also about failures.

“The article of renowned Finnish researchers in the prestigious Administrative Science Quarterly brings a major contribution to this discussion,” says Professor Mika Pantzar from the University of Helsinki. “The article offers a novel microhistorical interpretation on the surprising and unintentional nature of strategic success. In recent years, Finnish scholars have embraced theoretically substantiated and empirically ambitious business history research. The fact that this article has been published in one of the world’s most distinguished scientific journals is indicative of this development.”

The study was funded by the Research Council of Finland and Marcus Wallenberg’s Foundation for Research in Business Administration. Publishing it after more than a decade-long research work is a great milestone even for experienced researchers.

“This is the best project I have ever been involved in,” says Professor Henrikki Tikkanen from the Aalto University School of Business.

The article was published in the most prestigious scientific publication of organisational studies, Administrative Science Quarterly, which accepts annually only 16 articles out of thousands of candidates.

Authors of the study:

Professor Juha-Antti Lamberg, Jyväskylä University School of Business and Economics, juha-antti.lamberg@jyu.fi, 050 577 1698
Professor Eero Vaara, University of Oxford, eero.vaara@sbs.ox.ac.uk
Assistant Professor Pasi Nevalainen, University of Jyväskylä, Department of History and Ethnology, pasi.a.nevalainen@jyu.fi
Professor Henrikki Tikkanen, Aalto University School of Business, henrikki.tikkanen@aalto.fi

Publication data:

Lamberg, J. A., Vaara, E., Nevalainen, P., & Tikkanen, H. (2025). Near-Histories and Strategy Emergence: A Microhistorical Perspective. Administrative Science Quarterly, 00018392251355283.
Link to publication: https://doi.org/10.1177/00018392251355283