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1 – 10 of over 199000This study aims to investigate the way in which small retailer performance is influenced by strategy at different levels. It also aims to propose that business level strategy is…
Abstract
Purpose
This study aims to investigate the way in which small retailer performance is influenced by strategy at different levels. It also aims to propose that business level strategy is more important to success than functional level strategy in small retail firms, as this is what enables them to distinguish their business from competitors and effectively set about competing in their markets.
Design/methodology/approach
Data were collected from a mail survey of 305 independent retailers in the UK. Multivariate statistical methods were used to develop appropriate variables and explore the relationships between level of strategy and performance.
Findings
The results indicate that business level strategy variables have a significant influence on performance whereas functional levels do not when their combined effects are analysed using hierarchical regression modelling.
Research limitations/implications
The caveats normally associated with survey methods apply, as do those related to the use of cross‐sectional, self‐report, and managerial perceptions data. Implications for retail strategy theory and small retailers' performance are addressed.
Practical implications
The importance of business level strategy generally and its specific elements are considered with a view to providing guidance to management decision makers and policy advisors.
Originality/value
Reliable measures for retail strategy variables are developed in the paper. The research distinguishes the performance effects of retail business strategy from retail functional strategy and supports the view that business strategy decisions are superior in their market significance over operational retail mix decisions.
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The purpose of this paper is to research the nature of supply chain strategy (SCS). It represents one stage of an on‐going research initiative aimed at providing a framework for…
Abstract
Purpose
The purpose of this paper is to research the nature of supply chain strategy (SCS). It represents one stage of an on‐going research initiative aimed at providing a framework for systematic understanding of the linkages between corporate strategy (CS) making and supply chain management (SCM).
Design/methodology/approach
The paper explored the theory and literature related to strategic management and SCM. Four generic levels of strategy were linked to SCM, and synthesized into an explanatory SCS‐framework. Propositions for future research were presented based on the framework.
Findings
The paper shows that most of the literature on SCS relates to the functional level. Largely undiscovered are the links between corporate and business unit strategies with supply chain strategies and capabilities, especially on the network level (NL).
Practical implications
A fit between CS and SCM positively impacts the performance of a firm. The framework developed can be used by managers to assist in thinking through possibilities to link supply chain capabilities with the CS making processes.
Originality/value
By distinguishing between functional, business, corporate, and NLs, the paper provides a framework for future research to enhance knowledge related to supply chain strategies and capabilities.
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Rodney McAdam, Shirley-Ann Hazlett and Brendan Galbraith
Market deregulation in the utilities sector has led to increased competition and rising customer expectations in both established and new markets. This, in turn, has forced…
Abstract
Purpose
Market deregulation in the utilities sector has led to increased competition and rising customer expectations in both established and new markets. This, in turn, has forced organisations such as electricity and telecoms to make rapid, enterprise-wide changes on an increasingly frequent basis which in turn has led to problems with alignment. Misalignment can occur at many levels and can result in misused resources, loss of competitiveness, excessive cycle times, higher costs and loss of agility. The purpose of this paper is twofold. Given the lack of overarching theory, the paper begins by borrowing from contingency, dynamic capability and organisational learning constructs, to explore the role that performance measurement models can bring to improve the alignment between business strategy and functional strategy (level 1 alignment). Second, the paper analyses the role of performance measurement models in developing functional practices aligned with supply chain management (SCM) strategies (level 2 alignment).
Design/methodology/approach
The study adopts an exploratory theory-building approach using four case studies. These are used as key supply chains in both established and new business areas within two longitudinal university-industry research partnerships (each of three years duration). Data from repeat interviews (n=42), focus groups (n=10), documentation and observations is analysed and forms the basis for the development of a conceptual framework and a set of related propositions. The data analysis followed Radnor and Boaden's (2004) method for analysing interpretive research.
Findings
The findings show the role and impact of performance measurement models and methods on alignment at two levels, i.e. level 1 alignment – between business strategy and functional (SCM) strategy, and level 2 alignment – between the functional strategy (SCM) and SCM routines and practices.
Originality/value
To date, there are few studies which explore the development of theory and practice in relation to the role and impact of performance measurement models and methods in improving organisational alignment. This exploratory theory building study makes a contribution to this gap through the development of the conceptual framework and propositions.
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The ideas expressed in this work are based on those put intopractice at the Okuma Corporation of Japan, one of the world′s leadingmachine tool manufacturers. In common with many…
Abstract
The ideas expressed in this work are based on those put into practice at the Okuma Corporation of Japan, one of the world′s leading machine tool manufacturers. In common with many other large organizations, Okuma Corporation has to meet the new challenges posed by globalization, keener domestic and international competition, shorter business cycles and an increasingly volatile environment. Intelligent corporate strategy (ICS), as practised at Okuma, is a unified theory of strategic corporate management based on five levels of win‐win relationships for profit/market share, namely: ,1. Loyalty from customers (value for money) – right focus., 2. Commitment from workers (meeting hierarchy of needs) – right attitude., 3. Co‐operation from suppliers (expanding and reliable business) – right connections., 4. Co‐operation from distributors (expanding and reliable business) – right channels., 5. Respect from competitors (setting standards for business excellence) – right strategies. The aim is to create values for all stakeholders. This holistic people‐oriented approach recognizes that, although the world is increasingly driven by high technology, it continues to be influenced and managed by people (customers, workers, suppliers, distributors, competitors). The philosophical core of ICS is action learning and teamwork based on principle‐centred relationships of sincerity, trust and integrity. In the real world, these are the roots of success in relationships and in the bottom‐line results of business. ICS is, in essence, relationship management for synergy. It is based on the premiss that domestic and international commerce is a positive sum game: in the long run everyone wins. Finally, ICS is a paradigm for manufacturing companies coping with change and uncertainty in their search for profit/market share. Time‐honoured values give definition to corporate character; circumstances change, values remain. Poor business operations generally result from human frailty. ICS is predicated on the belief that the quality of human relationships determines the bottom‐line results. ICS attempts to make manifest and explicit the intangible psychological factors for value‐added partnerships. ICS is a dynamic, living, and heuristic‐learning model. There is intelligence in the corporate strategy because it applies commonsense, wisdom, creative systems thinking and synergy to ensure longevity in its corporate life for sustainable competitive advantage.
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The purpose of this paper is to examine the social bottom line in subsistence markets or base of the pyramid. This examination aims to suggest that social strategies for the…
Abstract
Purpose
The purpose of this paper is to examine the social bottom line in subsistence markets or base of the pyramid. This examination aims to suggest that social strategies for the second bottom line should be focused at the community level in measurement, assessment and impact.
Design/methodology/approach
A discussion of the double bottom line is presented. Social strategies are then discussed in terms of impact assessment at the community level and an impact assessment framework is developed reflective of the subsistence marketplace perspective. Implications are discussed in terms of poverty alleviation in subsistence markets and business
Findings
This examination suggests social strategies for the second bottom line should be focused at the community level in measurement, assessment and impact. Focusing social strategies at the community level reframes the role of firms and promotes a business in service of the community approach. Assessing impact at the community level creates a long‐term sustainable focus to business in subsistence markets. This perspective is a more holistic view that incorporates the social, economic and environmental ecology of the community from a multi‐generational perspective that requires entrepreneurs to commit their life's work to developing and servicing the community they live in. Using “And beyond Africa” as a case example of the community‐level social strategy the theory and practice are integrated and the conceptual ideas can be understood as a holistic reflection of the community. Further, examining how social strategies at the community level are understood in terms of the individual and humanity level creates greater awareness of the importance of a social strategy at the community‐level. Suggesting that a social strategy focused on the community level can make the largest impact on all three levels (individual, community and humanity). By considering more than customer impact, a social strategy can look at a business's impact on the community and better understand its impact on humanity. This conclusion changes the role of the entrepreneur and business to be in the service of the community.
Originality/value
This paper develops a community‐level social strategy view to the double‐bottom line in subsistence markets or base of the pyramid.
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Pouya Seifzadeh and W. Glenn Rowe
Corporate controls are mechanisms that corporations use to ensure that the processes and/or outcomes of their business units meet corporate expectations. Challenges in measurement…
Abstract
Purpose
Corporate controls are mechanisms that corporations use to ensure that the processes and/or outcomes of their business units meet corporate expectations. Challenges in measurement of corporate controls have led many researchers to operationalize them as part of the more ambiguous corporate effects construct, instead of addressing them separately. The purpose of this paper is to examine the significance of “fit” between corporate control mechanisms and business unit strategy in performance of business units.
Design/methodology/approach
The authors use ordinary least squares regression analysis on data collected between 2010 and 2012 from surveys from managers of 142 Iranian corporations and 1,822 of their subsidiaries. The authors also use financial and market data collected by an IDRO division and accessed through partnership in a joint project.
Findings
The authors found that while the fit between business unit strategy and corporate controls has a significant effect on business unit financial performance, it does not have a similar effect on market performance. The findings demonstrate that when business unit managers perceive that they are subject to a balance of strategic and financial controls with a slightly greater emphasis on strategic controls, then business units have higher financial and market performance, although the difference in financial performance is not significant.
Research limitations/implications
The authors find that the misfit between corporate controls and business strategies in such cases could negatively affect the performance of the business unit. However, this research also contributes to a better understanding of the importance of strategic controls to the successful performance of business units. The findings show that while the fit between controls and strategy is most critical for achieving financial performance in business units that pursue product leadership, strategic controls play a more prominent role than financial controls in achieving higher financial or market share performance for all business units.
Practical implications
The findings of the propositions in this research would discourage corporations with tight financial control from engaging in acquisition of businesses considered to be product leaders in their relative product markets.
Originality/value
Past research focusing on the fit between corporate-level factors and business-level factors and their role on business performance are largely limited to conceptual work. The limited empirical studies completed in the past generally reduce control mechanisms to lack or absence of autonomy. This shortcoming has been mainly due to difficulties in measurement of control mechanisms. The empirical study overcomes these barriers and in doing so, reveals surprising findings related to the effectiveness of different control mechanisms.
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Anu H. Bask, Markku Tinnilä and Mervi Rajahonka
In recent decades, supply chains have diverged and new types of services and operators have emerged in the logistics sector. The purpose of this paper is to focus on analyzing…
Abstract
Purpose
In recent decades, supply chains have diverged and new types of services and operators have emerged in the logistics sector. The purpose of this paper is to focus on analyzing service strategies and service‐related business models, as well as their modular business processes in logistic services. The aims are to describe these three levels and to match strategic service positioning with business models and modular business processes. Different types of services are analyzed and the analyses are conducted on both the industry and corporate levels.
Design/methodology/approach
The theoretical focus of the paper illustrates frameworks for service strategy, service positioning, business models, and business processes. The corporate level approach aims to describe the efficiency and quality of services and their processes, while the industry level approach focuses on service strategies in an industry and on the organization of business, i.e. business models. A case study is used to illustrate the strategic level divergence in logistic services and to match this with the business model framework and the business process approach.
Findings
The findings show that a match exists between service strategy, business models, and operational level business processes. Standardization, service productization and modularization of services, and also service production structures are useful tools for efficient service production and output.
Originality/value
Companies are currently examining new roles in supply chains and the logistics market. For management, the frameworks presented facilitate analysis of the different options available for the firm in terms of strategic positioning, structural business model portfolio, and modular business processes. Based on the theoretical frameworks, it is possible to evaluate past developments and also predict the future of services.
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M.K. Nandakumar, Abby Ghobadian and Nicholas O'Regan
This study aims to examine the moderating effects of external environment and organisational structure in the relationship between business‐level strategy and organisational…
Abstract
Purpose
This study aims to examine the moderating effects of external environment and organisational structure in the relationship between business‐level strategy and organisational performance.
Design/methodology/approach
The focus of the study is on manufacturing firms in the UK belonging to the electrical and mechanical engineering sectors, and respondents were CEOs. Both objective and subjective measures were used to assess performance. Non‐response bias was assessed statistically and appropriate measures taken to minimise the impact of common method variance (CMV).
Findings
The results indicate that environmental dynamism and hostility act as moderators in the relationship between business‐level strategy and relative competitive performance. In low‐hostility environments a cost‐leadership strategy and in high‐hostility environments a differentiation strategy lead to better performance compared with competitors. In highly dynamic environments a cost‐leadership strategy and in low dynamism environments a differentiation strategy are more helpful in improving financial performance. Organisational structure moderates the relationship of both the strategic types with ROS. However, in the case of ROA, the moderating effect of structure was found only in its relationship with cost‐leadership strategy. A mechanistic structure is helpful in improving the financial performance of organisations adopting either a cost‐leadership or a differentiation strategy.
Originality/value
Unlike many other empirical studies, the study makes an important contribution to the literature by examining the moderating effects of both environment and structure on the relationship between business‐level strategy and performance in a detailed manner, using moderated regression analysis.
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This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network…
Abstract
This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network approach (see, e.g., Axelsson & Easton, 1992; Håkansson & Snehota, 1995a). The study describes how adaptations initiate, how they progress, and what the outcomes of these adaptations are. Furthermore, the framework takes into account how adaptations spread in triadic relationship settings. The empirical context is corporate travel management, which is a chain of activities where an industrial enterprise, and its preferred travel agency and service supplier partners combine their resources. The scientific philosophy, on which the knowledge creation is based, is realist ontology. Epistemologically, the study relies on constructionist processes and interpretation. Case studies with in-depth interviews are the main source of data.
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