492 22 An institutional view of process strategy in the public sector* P. Devereaux Jennings, Paul A. Zandbergen and Martin L. Martens Scholarly strategy process research goes on, perhaps more than ever, suggest- ing that there is something fundamental and deeply interesting and profound about how strategies are made, where they originate, and how the process of strategy-making impacts the performance of organizations. (Szulanski, Porac et al., 2005: xv) In their 2005 compilation, The Strategy Process, Szulanski, Porac and Doz summarized the development of the process strategy ield. They main- tained that the ield, though highly fragmented, has been held together by research choices around four theoretical issues: 1) the meaning of process, 2) the type of study, 3) the primary level of analysis, and 4) the locus of action. Past process strategy researchers emphasized emergence as process and detailed emergence via in-depth, intra-organizational case studies of strategic decision making, often at the top management team level. Current strategy researchers have chosen to view the strategy process as a more complex phenomenon, best studied at multiple levels of analysis with comparative cases or longitudinal analysis to capture a shifting locus of action. This chapter is part of this newer strain of process strategy research. Strategy is conceptualized as being multidimensional, involving hot and cold issues as well as aligned and unaligned interests. The strategy process is also studied from multiple levels of analysis and via overtime qualitative (historical) and quantitative analysis in order to capture the shifting locus of action. However, unlike much strategy process research, our work is devoted to theorizing and testing concepts about process strategy in the public sector. In the wake of Enron, Parmalat, Lehman Brothers and the broader economic shocks experienced by the inancial system, there has been a call by practitioners and strategists alike for more attention to strategy in the public sector (Collins, 2001; Dobbin and Baum, 2000; Economist, 2009). The public sector refers to the domain occupied by gov- ernmental, non-governmental, and not-for-proit organizations (Vago, 1994). The public sector also includes activities of private organizations that are formally regulated by a governmental organization (Landy and M2462 - MAZZOLA PRINT.indd 492 29/09/2010 13:36