This article builds on punctuated equilibrium theory to offer a process model of organizational adaptation centered on top executives. It shows that during an adaptation crisis, individuals and coalitions within the top management group play a game to solve the strategic dilemma between keeping the current path and changing it. They strategize and confront their own responses to the signal of drift based on its deciphering and on their strategic interests. The solution to the dilemma, path reinforcement or transformation, depends on the winner of the top management game. Overall, this article contributes to strategic leadership by opening the executive suite’s black box, unraveling the dynamics of the top management group interactions during an adaptation crisis, and offering new directions for the field.
