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Article
Publication date: 12 September 2016

Ignacio Tamayo-Torres, Leopoldo J. Gutiérrez-Gutiérrez, Francisco Javier Llorens-Montes and Francisco J. Martínez-López

The purpose of this paper is to analyze the roles played by organizational learning (OL) and innovation in organizations immersed in the processes of adaptation and strategic fit

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Abstract

Purpose

The purpose of this paper is to analyze the roles played by organizational learning (OL) and innovation in organizations immersed in the processes of adaptation and strategic fit in dynamic and turbulent environments. The authors analyze whether OL and innovation act as sources of strategic fit, and whether strategic fit positively affects performance.

Design/methodology/approach

The authors use data from a survey of a representative sample of 204 respondents from European firms active in high-technology sectors (response rate: 10.42 percent) and structural equation modeling (using the EQS 6.1 program) to undertake a transversal study.

Findings

The model confirms that OL and the capacity to innovate positively influence managers’ decisions to adapt their organizations to changes in dynamic environments. The achievement of strategic fit, in turn, improves organizational performance. The authors propose considering the innovation climate as a facilitator of new product and process development, although the innovation climate is not a direct antecedent of fit.

Research limitations/implications

This study is limited by the fact that the analysis is cross-sectional and by the fact that all measures used are based on managers’ perceptions.

Practical implications

Managers should create and support an entrepreneurial culture that stresses continuous learning. They should also foster programs aimed at developing abilities, and promote the development of capabilities that facilitate acceptance of organizational change. Investments in building certain capabilities, such as OL and the capacity to innovate, are strategically justified, especially in turbulent environments.

Originality/value

This study is one of the first to investigate the complex interactions among OL, innovation, strategic fit, and performance. The results improve our understanding of the links between strategic fit and performance.

Details

Industrial Management & Data Systems, vol. 116 no. 8
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 6 November 2017

Van Thac Dang and Chin-Shien Lin

This study aims at investigating the effect of an overall fit among strategy, environmental factors and organizational resources on firm performance, and the moderating role of…

Abstract

Purpose

This study aims at investigating the effect of an overall fit among strategy, environmental factors and organizational resources on firm performance, and the moderating role of industry on this relationship.

Design/methodology/approach

This paper uses hierarchical linear modeling to analyze the nested data structure from the financial and electronics companies in Taiwan’s stock market from 2011 to 2012.

Findings

The empirical results indicate that overall strategic fit is positively related to firm performance, and this relationship varies across financial industry and electronics industry.

Originality/value

This study provides important implications for both academic researchers and practitioners. From a theoretical aspect, this study integrates two research streams of strategic fit (external fit and internal fit) into an overall model of strategic fit, and has explored the moderating role of industry on the relationship between strategic fit and firm performance. In addition, this study has also used hierarchical linear modeling method to test the hypotheses, which has not been used in the previous strategic fit literature. From a practical aspect, the empirical results have derived implications for managers as to understand the effects of overall strategic fit on performance in different industry, which may be helpful for making decisions in specific industry context.

Details

Chinese Management Studies, vol. 11 no. 4
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 14 June 2011

Chang‐yen Tsai and Chengli Tien

The purpose of this paper is to explore the relationship between the strategic fit of supply chains and the formulation of future strategies.

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Abstract

Purpose

The purpose of this paper is to explore the relationship between the strategic fit of supply chains and the formulation of future strategies.

Design/methodology/approach

This study focuses on Taiwanese investments in China and offers models based mainly on the transaction cost theory and the eclectic theory using data surveyed from 1,100 Taiwanese companies in China's Pearl River Delta (PRD) and the Yangtze River Delta (YRD).

Findings

Strategic fit from the perspective of the degree of vertical integration and the degree to which a Taiwanese firm fits in the local supply chain can affect the propensity for strategic change. That is, strategic fits in internalization strategy for vertical integration and in localization strategy for fit in the local supply chain are related to how a firm formulates its future strategies. Industrial factors between technological sectors and non‐technological sectors, and geographical factors between the YRD and the PRD further reveal different levels of significance in the strategic fit‐change relationship.

Originality/value

The paper fills some gaps. First, the study described in the paper examines strategic fit from the supply chain perspective to fill the knowledge gap regarding the significance of strategic fit in a supply chain and its impact on strategic change. To deal with the multi‐dimensionality of strategic fit, this study attributes to evidence of multiple perspectives. Second, the study extends the industrial effect and the geographic effect on the strategic fit‐change relationship. Third, the evidence‐based findings provide academia, business practitioners and government agencies with evidence regarding foreign direct investment strategies from supply chain perspectives.

Details

Chinese Management Studies, vol. 5 no. 2
Type: Research Article
ISSN: 1750-614X

Keywords

Open Access
Article
Publication date: 31 August 2017

Apithamsoonthorn Sompong and Suthiwartnarueput Kamonchanok

Outsourcing is recognized as one of the critical factors for efficient execution of pharmaceutical supply chain management (PSCM), and many pharmaceutical companies engage in…

Abstract

Outsourcing is recognized as one of the critical factors for efficient execution of pharmaceutical supply chain management (PSCM), and many pharmaceutical companies engage in international outsourcing of services (IOS) to survive in global highly competitive business. Since the key success factors for both domestic & international alliances are partnership characteristics and strategic fit management, but there is no empirical research on this issue in Thai pharmaceutical partnership offshore outsourcing. Therefore, this survey of Thai and foreign companies, both contract providers (CPs) and contract manufacturers (CMs), seeks to indicate significant relationships among both outsourcing strategic fit and partnership types, including outsourcing performance outcome. This research is two-fold. First, the partnership types (Type I, II, & III), the strategic fit types (low fit, moderate fit, and good fit), and their correlations are analyzed. And second, their outsourcing performance (company revenues and growth rates) are presented. The results showed that the most of the Thai pharmaceutical outsourcing manufacturing are classified as the partnership Type II, as well as the moderate strategic fit, and strongly support the relationship between the two models. Both of the companies’ revenue and growth rate could predict the companies’ performances outcome for each of partnership and strategic fit types. However, it is not necessary that the most integrative type of partnership, Type III, will be always the best, because it depends also on the strategic fit between each pair of partners as well.

Details

Journal of International Logistics and Trade, vol. 15 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 4 August 2022

Anup Kumar, Santosh Kumar Shrivastav and Subhajit Bhattacharyya

This study proposes a methodology based on data source triangulation to measure the “strategic fit” for the automotive supply chain.

Abstract

Purpose

This study proposes a methodology based on data source triangulation to measure the “strategic fit” for the automotive supply chain.

Design/methodology/approach

At first, the authors measured the responsiveness of the Indian automobile supply chain, encompassing the top ten major automobile manufacturers, using both sentiment and conjoint analysis. Second, the authors used data envelopment analysis to identify the frontiers of their supply chain. The authors also measured the supply chain's efficiency, using the balance sheet. Further, the authors analyzed the “strategic fit” zone and discussed the results.

Findings

The results indicate that both the proposed methods yield similar outcomes in terms of strategic fitment.

Practical implications

The study outcomes facilitate measuring the strategic fit, thereby leveraging the resources available to align. The methodology proposed is both easy to use and practice. The methodology eases time and costs by eliminating hiring agencies to appraise the strategic fit. This valuable method to measure strategic fit can be considered feedback for strategic actions. This methodology could also be incorporated possibly as an operative measurement and control tool.

Originality/value

Data triangulation meaningfully enhances the accuracy and reliability of the analyses of strategic fit. Data triangulation leads to actionable insights relevant to top managers and strategic positioning of top managers within a supply chain.

Details

International Journal of Productivity and Performance Management, vol. 72 no. 10
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 13 February 2023

Leyla Boy Akdag and Özge Tayfur Ekmekci

This study explores the effect of the strategic fit (tight-fit, minimal-fit and non-fit) between business strategies and human resource (HR) practices on perceived organizational…

Abstract

Purpose

This study explores the effect of the strategic fit (tight-fit, minimal-fit and non-fit) between business strategies and human resource (HR) practices on perceived organizational performance (POP). It also investigates the moderating role of firm size on strategic fit–performance linkage.

Design/methodology/approach

The data were gathered via an online survey from HR managers of companies listed in “Fortune-500 Turkey, ISO-Top and Second-Top 500”. The form was distributed to 669 organizations, and 102 of them responded. The data were analyzed using one-way ANOVA and moderation analysis.

Findings

No statistically significant difference was found in organizational performance according to different strategic fit categories. The moderating effect of firm size was not significant. Yet, tight-fit and minimal-fit appear to be linked to higher organizational performance. The results reveal that business strategies aligned with HR practices could have a favorable impact on organizational performance.

Originality/value

The study differs from previous studies in terms of methodology, the conceptualization of strategic fit categories, the nature of the sample and non-Western origin.

Details

International Journal of Manpower, vol. 44 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 March 2001

Prescott C. Ensign

This paper focuses on the concept of fit as a topic of research. The concept of fit has been viewed as an internal consistency among key strategic decisions or the alignment…

Abstract

This paper focuses on the concept of fit as a topic of research. The concept of fit has been viewed as an internal consistency among key strategic decisions or the alignment between strategic choices and critical contingencies with the environment (external), organization (internal), or both (external and internal). A number of research perspectives or approaches related to fit are presented.Research design problems are discussed: definition of terms, theoretical issues, and empirical issues. Emphasis is on how key variables or dimensions of fit are defined and measured in research.

A six-celled matrix is proposed as a conceptual scheme to distinguish different perspectives of fit and to portray congruence relationships more accurately. The matrix includes three common dimensions: strategy, organization, and environment. The matrix also suggests two levels of strategy—corporate or business—and three domains of fit—external, internal, or integrated. These suggest different research perspectives for the study of fit. Examples from the literature are provided to illustrate and support this conceptual scheme. Finally, implications for management and furtherstudy are outlined.

Details

International Journal of Organization Theory & Behavior, vol. 4 no. 3/4
Type: Research Article
ISSN: 1093-4537

Article
Publication date: 1 May 2008

Bruce A. Heiman, Weining Li, George Chan and Salvador D. Aceves

We explore the effects of three categories of fit on US‐China joint‐venture performance using four performance measures. Many studies prescribe strong fit across multiple…

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Abstract

We explore the effects of three categories of fit on US‐China joint‐venture performance using four performance measures. Many studies prescribe strong fit across multiple categories as necessary for high performance, but little rigorous analysis supports this. Three important threads of existing “fit” research resonate in the literature: strategic, cultural and organizational fit. We analyze an original survey dataset of over 80 US‐China JVs, and test for effects of fit‐categories using two measures for each thread. Additionally, multiple control factors give a compelling look at a complete model of fit’s effects on JV performance. Objective congruence (strategic fit) among JV partner‐firms, impacts two performance‐measures. Efficacy of managerial communications (cultural fit) also matters, as does harmony regarding hiring decisions (organizational fit). Our findings are a step forward empirically, and partly resolve persistent questions about partner‐fit in JVs and performance.

Details

Journal of Asia Business Studies, vol. 2 no. 2
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 23 August 2011

Alex Hill and Richard Cuthbertson

The purpose of this paper is to investigate the relationship between internal strategic fit and business performance, propose six classifications of internal fit using the …

3006

Abstract

Purpose

The purpose of this paper is to investigate the relationship between internal strategic fit and business performance, propose six classifications of internal fit using the “strategic map” managerial framework and identify how firms should best move from one classification to another and the impact that these changes will have on business performance.

Design/methodology/approach

Empirical research was conducted in 12 service organisations. Based on these findings, two fit‐performance relationships were identified and the “fitness map” framework was developed showing six classifications of fit.

Findings

The alignment of operations strategy within an organisation is significantly and positively related to market share, whereas, the alignment of the service delivery system is significantly and positively related to return on sales. However, neither the alignment of the operations strategy nor the service delivery system appears to have a relationship with return on investment. Six classifications of internal strategic fit emerged: poorly aligned organisations are either “understanding processes” or “understanding markets”, medium‐fit companies are “managing processes” or “developing service offerings” and well‐aligned firms are “leveraging services and process capabilities” or “leveraging markets and design capabilities”.

Practical implications

The fit‐performance relationships show how changes in the alignment of operations strategy and delivery system impact business performance differently. Using this knowledge, practitioners can use the “strategic map” framework to identify their classification of fit and understand how it has been created, benchmark their level of fit against other businesses, understand how to move from one level of fit to another and how these decisions will impact business performance.

Originality/value

The paper's findings start to address the gap in the literature on internal strategic fit within service organisations and meet the need for more management tools to help businesses develop strategies, understand the level of fit they create and how they can impact business performance.

Details

International Journal of Operations & Production Management, vol. 31 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 31 May 2011

Gunjan Soni and Rambabu Kodali

This paper aims to explore the state of strategic fit between “competitive strategy” (CS) and “supply chain strategy” (SCS) in the Indian manufacturing industry by investigating

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Abstract

Purpose

This paper aims to explore the state of strategic fit between “competitive strategy” (CS) and “supply chain strategy” (SCS) in the Indian manufacturing industry by investigating the mediating role of supply chain strategy between competitive strategy and performance of company/supply chain.

Design/methodology/approach

This aim is accomplished by using a survey questionnaire that was answered by 185 respondents from various sectors of Indian manufacturing industry. These sectors included automobile, electrical and electronics, process, machinery, textile, food, aviation and footwear sectors. The state of strategic fit is explored based on research framework of “matrix of strategic fit”.

Findings

The major findings revealed existence of a causal relationship between CS and SCS with CS as independent variable and SCS as dependent variable. It was also found that choice of CS and SCS affects business and supply chain performance. The other finding was establishment of the existence of strategic fit in Indian manufacturing industry, which was explained by analyzing the interaction effect between CS and SCS. It was also found that a major hurdle in implementing SCM practices in Indian manufacturing industry is “overcoming traditional practices”.

Originality/value

Indian manufacturing industry is growing by leaps and bounds, but to date there is no study that has explored the mediation effect of supply chain strategy between competitive strategy and performance in India. This paper provides a research framework to study and assess these dimensions of strategy on “matrix of strategic fit”.

Details

Measuring Business Excellence, vol. 15 no. 2
Type: Research Article
ISSN: 1368-3047

Keywords

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