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Article
Publication date: 21 August 2019

Qinglan Chen and Tor Eriksson

The purpose of this paper is to empirically examine the mediating role of decentralization in the relationship between a firm’s strategy and its performance in the context of an…

Abstract

Purpose

The purpose of this paper is to empirically examine the mediating role of decentralization in the relationship between a firm’s strategy and its performance in the context of an advanced economy where the chief corporate strategy is differentiation.

Design/methodology/approach

The study uses data collected by an online survey targeting a stratified sample of 1,238 private firms operating in Denmark. The empirical analysis was carried out by estimating a structural equation model.

Findings

The key finding was that a decentralized organization (DO) can act as a mediator between a firm’s differentiation strategy and its performance. A multi-group analysis revealed that the mediating impact of decentralizing was affected by contingency factors such as firm size, strategic clarity, degrees of business environment risk and industry competition. Thus, a DO can be said to play a more important role in larger firms, in firms with less strategic clarity, and in companies with multiple plants.

Research limitations/implications

Although the study offers empirical evidence from a relatively large and representative sample of firms, the specificity of the context should be noted. In particular, firms in Denmark, while facing strong competition, do not compete with low costs. Clearly, studies of the mediating role of decentralization in low-cost strategy environments would be an important next step.

Practical implications

Several implications of the findings for organizational design and creation of beneficial conditions for strategy implementations are discussed.

Originality/value

The novel contribution of the study lies in the focus on decentralization as a mediator in the strategy–performance relationship. While previous research has shown that strategy is related to decentralization, and that decentralization is associated with higher performance, an empirical analysis of the relationship between the factors in the strategy-decentralization-performance path had not previously been undertaken.

Details

Journal of Organizational Change Management, vol. 32 no. 4
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 1 May 1998

E. Mark Hanson

Educational decentralization is a popular reform theme of governments around the world, but with motives, strategies and outcomes as different as the countries themselves. For…

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Abstract

Educational decentralization is a popular reform theme of governments around the world, but with motives, strategies and outcomes as different as the countries themselves. For researchers and policy makers alike, there is a growing need to synthesize the positive and negative aspects of these national strategies and experiences. The objective of this paper is to identify and explain the key issues and forces that play major roles in shaping organization and management strategies of educational decentralization. Examples from five Hispanic nations that have initiated decentralization reforms will be utilized to illustrate the major points: Colombia, Venezuela, Argentina, Nicaragua and Spain. The paper is organized around a series of questions that tap core decentralization issues, such as national and regional goals, planning, political stress, resource distribution, infrastructure development, and job stability. The paper concludes with a conceptual model of the decentralization process and a series of “lessons learned” from the five nations.

Details

Journal of Educational Administration, vol. 36 no. 2
Type: Research Article
ISSN: 0957-8234

Keywords

Article
Publication date: 14 May 2018

Elona Guga

An attempt will be made to shed light on the course and pattern of the decentralization process by analyzing the historical development of local government and the…

Abstract

Purpose

An attempt will be made to shed light on the course and pattern of the decentralization process by analyzing the historical development of local government and the territorial-administrative reform of 2015-2020 in Albania and the factors that have been shaping it. The scope is to understand the impact of the reform elements on the subnational governments and in general their overall impact on the government. The purpose of this paper is to fill the gap in the existing literature for Albania and at offering some insights on the administrative-territorial reform. Furthermore, it will contribute to the current debate on fiscal decentralization in South Eastern European (SEE) countries and the public management model implemented after the last reforms.

Design/methodology/approach

The first section analyzes the historical development of local government reforms from the 1990s to today and will help to identify if there is instrumentalism advocacy. The second section explains the determinants of the local government’s fiscal autonomy in Albania of the period from 2003 to 2016. Three indicators are used as proxies for fiscal decentralization: the proportion of subnational expenditure over national expenditure, of total subnational revenues over total revenues of central government and the indicator of own subnational revenues over total revenues of the central government. The data from the budget and the revised budgets are then compared.

Findings

Despite Albania’s commitment to decentralize its government functions, there is still work to do. The territorial and administrative reform has not generated the expected results. Almost 90 percent of the revenues still come from the central government’s unconditional transfers. Therefore, the Albanian Government should build capacities and skills, and train the employees of each level of government that currently benefit from international assistance.

Research limitations/implications

The analysis represents a single case study on the territorial-administrative reform in Albania. Its implementation started in 2015 and it is probably too early to discuss outcomes. However, it might be useful to analyze the first results after a two-and-a-half-year period of implementation of reforms. Despite contributing to the existing gap in the literature, additional research will be necessary to better understand the decentralization process not only in Albania, but in all SEE countries.

Practical implications

It is necessary to first understand the lack of initial output, as well as the various challenges faced, in order to take the corrective measures on time.

Originality/value

This paper discusses in detail the reform adopted and the progress made by the Albanian local government units. The reform attempts to develop better relationships between the central and local governments and hence improve their service delivery, transparency and accountability. This paper is the first one that is attempting to analyze the initial output of the territorial-administrative reform of 2015-2020.

Details

International Journal of Public Sector Management, vol. 31 no. 4
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 1 February 1990

Claes Tunälv

Major decisions in manufacturing have often been treated as amanagement task. Investments and changes in manufacturing have becomemore complex in the last few decades. This…

Abstract

Major decisions in manufacturing have often been treated as a management task. Investments and changes in manufacturing have become more complex in the last few decades. This implies that more functions and individuals have to be involved in the decision‐making processes. The final decision, when investments are made in manufacturing, is either the result of many decisions influenced by the individuals, or on the basis of advice from individuals who have no formal power to make decisions. To ensure that the decisions made are strategically connected, manufacturing strategies and goals have to be broken down to, and understood by, the functions and levels that influence the decisions. A study of 125 manufacturing units in Sweden shows that companies with a manufacturing strategy break down goals and strategies to lower levels than companies without a manufacturing strategy. The companies having a manufacturing strategy also plan manufacturing on longer terms, are more active in future plans and are less concerned about short‐term goals when they invest in manufacturing technology.

Details

International Journal of Operations & Production Management, vol. 10 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 19 June 2009

Yossef Ben‐Meir

The suggested utility of decentralized development in Iraq and the Palestinian occupied territories is meant to provide policymakers new alternatives to managing and resolving…

Abstract

Purpose

The suggested utility of decentralized development in Iraq and the Palestinian occupied territories is meant to provide policymakers new alternatives to managing and resolving these conflicts. This paper aims to address this issue.

Design/methodology/approach

The overall paradigm of decentralization is presented and how participatory development relates within it is described. As the conditions in Iraq and Palestine are then discussed, cited qualities and results of decentralized participatory development are shown to directly address the fundamental issues that perpetuate these conflicts.

Findings

The paper finds that decentralization to local communities of development planning and management reinforces national sovereignty when national governments actively support its implementation. The productive partnerships among government, civil organizations and private groups that can result from decentralization – both vertically and horizontally along administrative tiers – strengthen both local community and national autonomy.

Practical implications

The decentralization strategy presented – participatory development – has been shown in cases around the world to also generate vital economic, social, and environmental benefits in a more expeditious and at a lower cost than typical development assistance programs. These outcomes, among others, are what is needed to help resolve conflicts in Iraq and between the Israelis and Palestinians – conflicts rooted in matters of sovereignty, development and reconciliation. In Iraq, decentralization of development will give the national government legitimacy, the Iraqis ownership of their own reconstruction, and the opportunity to incorporate reconciliation as part of the process. In the Palestinian occupied territories, decentralized development will bring immediate relief and build socio‐economic self‐reliance in a way that restructures their economy to be less dependent on Israel and help reduce tensions and violence.

Originality/value

There are important theoretical and applied values of this analysis. By explaining how different ideological perspectives (socialism, neo‐liberalism, alternative development and others) relate to the various organizational arrangements of decentralization, a detailed description of the decentralization paradigm is provided. Then by presenting participatory development as a strategy of decentralization and showing how it can be implemented in Iraq and Palestine, it is shown to be a practical tool with outcomes that correspond fittingly to the fundamental requirements for resolving these destabilizing conflicts. The analysis contributes to both the theoretical and applied knowledge of decentralization.

Details

International Journal of Sociology and Social Policy, vol. 29 no. 5/6
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 1 August 2003

Ka‐ho Mok

Globalization and the evolution of a knowledge‐based economy have caused dramatic changes to the character and functions of education in most countries around the world. In order…

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Abstract

Globalization and the evolution of a knowledge‐based economy have caused dramatic changes to the character and functions of education in most countries around the world. In order to enhance the overall competitiveness of individual nation‐states in the global market environment, comprehensive education reforms have been launched in different parts of the globe to strengthen manpower training. Realizing the fact that there is only one resource in Singapore – human capital – the Singapore government therefore has tried to maximize the potential of its citizens in the further advancement of its economic modernization. In order to make its citizens more creative and innovative, the Singapore government openly acknowledges the importance of allowing more autonomy for schools in charting their own courses of development. By introducing a policy of decentralization, the Singapore government hopes that schools could have more autonomy and flexibility to develop their strengths and thereby individual schools can evolve with their own unique features. One way to promote quality education is the introduction of the “school excellence model” (SEM) to engage schools in self‐improvement and self‐assessment exercises. This paper sets out in this policy context to examine and study the newly proposed SEM, with particular reference to examining and studying the philosophy and principles, major features and detailed procedures of this quality assurance model. More specifically, this paper will also analyze this model in light of the global trends of educational decentralization and marketization, reflecting upon the changing role of the Singapore government in educational governance.

Details

Journal of Educational Administration, vol. 41 no. 4
Type: Research Article
ISSN: 0957-8234

Keywords

Article
Publication date: 22 November 2011

Maurice Gosselin

The purpose of this paper is to examine the association between strategy, structure and environmental uncertainty, and the design and the use of performance measurements systems…

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Abstract

Purpose

The purpose of this paper is to examine the association between strategy, structure and environmental uncertainty, and the design and the use of performance measurements systems. The paper provides empirical evidence on the contextual factors associated with the use of financial and non‐financial measures, process and outcome measures and the deployment of innovative performance measurement systems in manufacturing business units.

Design/methodology/approach

A questionnaire was sent to a random sample of 200 Canadian manufacturing organizations. Respondents were asked to indicate to which extent they use different measures. They also had to mention if they had adopted an innovative performance measurement approach such as the balanced scorecard. The questionnaire also included questions to classify organizations as prospectors, defenders or analyzers and to measure the levels of decentralization and perceived environmental uncertainty.

Findings

The results show that there is a significant association between strategy, organizational structure and environmental uncertainty and the use of non‐financial and process measures. They also indicate that there is an association between strategy and environmental uncertainty and the deployment of innovative performance measurement systems.

Practical implications

Since the 1990s, performance measurement has become an important issue for both academics and practitioners. The professional literature has suggested that managers should design innovative performance measurement systems such as balanced scorecards that include financial and non‐financial measures and also process and outcome measures. This paper provides a better understanding of the factors that affect the implementation of innovative performance measurement systems.

Originality/value

The paper presents one of the few studies that provide a better understanding of the contingent factors that influence the design and the use of innovative performance measurement systems.

Details

Journal of Applied Accounting Research, vol. 12 no. 3
Type: Research Article
ISSN: 0967-5426

Keywords

Book part
Publication date: 8 November 2004

Kuno Schedler, Lawrence R. Jones and Riccardo Mussari

This book is organized into five sections. The first four sections are devoted to investigation of the seven different strategies to achieve public management reform delineated in…

Abstract

This book is organized into five sections. The first four sections are devoted to investigation of the seven different strategies to achieve public management reform delineated in this book. The seven strategies are: (1) increased accountability; (2) decentralization and delegation of authority and responsibility for decision making and management; (3) application of information technology to improve management and responsiveness of governments to citizens; (4) developing and improving management control systems in the public sector; (5) measures to reduce corruption in government, business and society; (6) development and use of performance indicators in public organizations; and (7) integration of performance measurement and management in public organizations. The chapters in each of the five sections address the need for and application of strategy, impediments to implementation, and use cases to support their analysis and conclusions.

Details

Strategies for Public Management Reform
Type: Book
ISBN: 978-1-84950-218-4

Book part
Publication date: 17 July 2006

Edward F. Bodine

In the early 1980s, institutional and development researchers began to question why schools in different countries around the world increasingly appeared alike in formal design…

Abstract

In the early 1980s, institutional and development researchers began to question why schools in different countries around the world increasingly appeared alike in formal design, organization, and function. Boli, Ramirez, and Meyer (1985) offered a seminal neo-institutional argument that schools around the world are increasingly drawn up by the global sweep of modernization. A prerequisite for any country wishing to engage with and compete in the modern world, the authors argued, is establishing a system of mass schooling based on a set of core institutional standards and values that originated in the west but have since expanded around the globe. These standards and values require that schools be universally accessible and socially progressive, capably of equally and equitably integrating a citizenry – regardless of racial, ethnic, and gender-related distinctions – into the nation-state. The world model of education described by these theorists provides not so much an organizational blueprint for building modern school systems as a cultural schema for defining the national polity and forging a modern society through education. What makes schools everywhere look and act the same, they claim, is the utter invariability of this schema.[T]he striking thing about modern mass education is that everywhere in the world the same interpretative scheme underlies the observed reality. Even in the most remote peasant villages, administrators, teachers, pupils, and parents invoke these institutional rules and struggle to construct schools that conform to them. (p. 147)

Details

The Impact of Comparative Education Research on Institutional Theory
Type: Book
ISBN: 978-0-76231-308-2

Article
Publication date: 1 July 2005

Maurice Gosselin

The recent performance measurement literature suggests that organizations should put more emphasis on non‐financial measures in their performance measurement systems, that…

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Abstract

Purpose

The recent performance measurement literature suggests that organizations should put more emphasis on non‐financial measures in their performance measurement systems, that organizations must use new performance measurement approaches such as the balanced scorecard and that measures should be aligned with contextual factors such as strategy and organizational structure. The purpose of this paper is to assess the extent to which organizations are following these prescriptions.

Design/methodology/approach

A survey of a sample of Canadian manufacturing firms was conducted. In the questionnaire, organizations had to indicate the extent to which they use 73 performance measures. They also had to respond to questions about determinants such as strategy, organizational structure and environmental uncertainty. More than 100 organizations responded to the survey. The response rate was 50.5 percent.

Findings

The results show that manufacturing firms continue to use financial performance measures. Despite the recommendations from experts and academics, the proportion of firms that implement a balanced scorecard or integrated performance measurement systems is low. Furthermore, organizations that use these approaches are not employing more extensively non‐financial measures than those which are applying traditional performance measurement approaches. This research project also shows that there are some significant relationships between the types of measures and contextual factors like strategy, decentralization and environmental uncertainty. This research finally demonstrates clearly that there is a need to develop a theory that explains how firms can use their performance measurement system to enhance their performance.

Originality/value

This paper provides information on performance measures used by organizations and their association with organizational determinants.

Details

International Journal of Productivity and Performance Management, vol. 54 no. 5/6
Type: Research Article
ISSN: 1741-0401

Keywords

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