Many things about the behavior of a social system refer to the interaction rather than the individuality of its members. Each social system manifests certain characteristics that it may retain even if all its individual members are replaced. – Ervin Lazlo
The global economy is a system and as such organizational strategic choices need to be approached systemically. Today, global organizations are incorporating systems thinking into their strategic framework to supplant short-termism, fostering sustainable culture needed to address the multiplicity of risks toward successful strategy execution. Globalization strategies represent a firm’s product and service specialization, resources, and core capabilities of which their interactions are dependent on the organizational structure – a relational based performance. Notably, people make up the organizational structure and those people have common guiding principles, attitudes, and beliefs that must fit a specific strategy for it to succeed. Sustainable culture seeks to build the necessary relationship between the firm and stakeholders that encompasses financial performance, social inclusion, and environmental stewardship to ensure strategic fit. Without a viable and dynamic culture, a social system is doomed. Thus, by understanding the characteristics of interaction and behavior of social systems, we appreciate the role of implicit cultural codes and their impact on the process of strategy formulation.