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1 – 10 of 311Philippe Chereau and Pierre-Xavier Meschi
The purpose of this paper is to highlight different strategy–business model (BM) alignments using Miles and Snow’s strategic framework and analyze the performance implications of…
Abstract
Purpose
The purpose of this paper is to highlight different strategy–business model (BM) alignments using Miles and Snow’s strategic framework and analyze the performance implications of these different alignments.
Design/methodology/approach
The paper develops a composite conceptual model combining Miles and Snow’s strategy typology with Demil and Lecocq’s BM framework to explore the performance implications of strategy–BM fit. This model is empirically examined using a sample of 156 French small- and medium-sized enterprises (SMEs) in the manufacturing sector.
Findings
The results first highlight a limited set of BM configurations across strategic profiles, confirming that a BM reflects a firm’s strategy as a means of realizing strategic choices. Second, they reveal that deviating from ideal strategy–BM alignments negatively affects performance. Finally, they shed light on the dynamics of Miles and Snow’s typology, from intended to implemented strategy.
Research limitations/implications
The intrinsic characteristics of surveyed SMEs led to the hybridization of empirically derived profiles, which allowed to partially associate them with theoretically predicted configurations of BMs.
Practical implications
The paper suggests the patterns of predictive strategy–BM alignment that allow managers and entrepreneurs to monitor the dynamic consistency between strategic choices and their implementation.
Originality/value
Do you need a strategy if you have a BM? Adopting a fit and performance perspective, this paper addresses this question and complements other studies emphasizing the need to connect strategies and BMs.
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Wahyu Apriyantopo, Atik Aprianingsih and Mandra Lazuardi Kitri
State-owned enterprises’ (SOEs) goals are perceived as two-sided blades, providing goods or services to the public on one side and escalating the government’s wealth on the other…
Abstract
Purpose
State-owned enterprises’ (SOEs) goals are perceived as two-sided blades, providing goods or services to the public on one side and escalating the government’s wealth on the other side. Treating the SOEs, government encounters the problem of injection strategy or privatize them. At the same time, managers have the option to formulate the SOEs strategy to boost performance. By using Miles and Snow’s typology strategy and the above factors, this paper investigates those impacts on Indonesia’s SOEs’ performance. This study aims to propose strategic typology as the main predictor with other variables such as the size, ownership structure, market competitiveness and capital subsidy on SOEs.
Design/methodology/approach
The study uses archived SOEs’ financial data from 2014 to 2018 to predict the financial performance using ordinal logistic regression analysis. The additional factors, such as firm size, ownership structure, market concentration and capital subsidy, are incorporated.
Findings
The result demonstrates that SOEs strategic typology, market concentration, size, ownership structure and capital subsidy significantly affect Indonesia’s SOEs’ performance.
Originality/value
To the best of the authors’ knowledge, this paper is the first elaborating government policies for SOEs, such as capital subsidy and state ownership, on the perspective of Miles and Snow’s strategy-performance relationship. Correspondingly, the paper contributes to examine the Indonesian characteristic SOE type with the performance. No single study has previously explored this relationship in the context of SOE in Indonesia.
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Oussama Ammar and Philippe Chereau
This paper aims to identify the differentiated paths followed by firms to innovate in business models, among four different strategic postures and also to determine the innovation…
Abstract
Purpose
This paper aims to identify the differentiated paths followed by firms to innovate in business models, among four different strategic postures and also to determine the innovation interactions between business model components, among strategic postures. The authors intend to highlight the differentiated patterns of business model innovation (BMI) in each strategic posture and provide guidance to small and medium enterprises (SMEs) managers regarding the suitable alignments of business model components when they innovate in their business model.
Design/methodology/approach
The research model developed and tested in this work uses a composite model that borrows from the logic of Miles and Snow’s cycle of adaptive strategic choices as well as Demil and Lecocq’s perspective of permanent change within and between components of a business model. The authors’ model is designed first to encompass the differentiated patterns characterizing the relationships between the strategic posture of defender, prospector and analyzer profiles and the related innovation attributes of their business model components. The study was conducted with independent French manufacturing SMEs ranging from 10 to 250 employees in size and having revenues below €50m (European Commission, 2007). The analysed sample includes 169 firms from 14 sectors representative of French manufacturing SMEs.
Findings
Results confirm the differentiated propensity to adopt specific BMI behaviours among strategic postures. The authors also highlight the differentiated interactions between and within BMI components. These results suggest that SMEs tend to leverage specific BMI components related to their entrepreneurial, engineering and administrative choices. Thus, firms tend to evolve in a posture-specific, path-dependent dynamic consistency in which BMI attributes interact towards a limited set of alternatives, thus anchoring the new business model into strategic choices. It has been shown that the predictability of strategy–BMI alignment is contingent on the level of fit between empirically derived strategic profile attributes and Miles and Snow’s ideal profile attributes.
Research limitations/implications
This paper investigates strategy–BMI alignments without addressing such alignments from the standpoint of firm performance. Still, performance from a BMI perspective lies in the ability of the firm to sustain the dynamic consistency of its business model components by identifying the effects of change in interactions between and within components on overall BM performance. Further studies should explore dynamic consistency as a means for firms to generate and maintain performance by innovating in their business model when facing specific contingencies. The conceptual framework designed for the present research seems appropriate for conducting such an investigation on the performance implications of strategy–BMI fit.
Practical implications
This research offers insights regarding manufacturing SMEs seeking guidance when changing business strategy. Indeed, by combining Miles and Snow’s configurational framework of strategic postures with Demil and Lecocq’s RCOV BM framework, the authors provide insights that can bridge the gap between intended strategy and realized strategy. The authors suggest that when realizing new strategic choices, SMEs should favour behaviours of BMI that are likely to fit the new intended strategic posture. Accordingly, the authors introduce a set of field-based BMI alignments specific to firms’ strategic posture to support the strategic management of innovation in SMEs.
Originality/value
By unravelling the alignments between strategic posture and business model innovation, this work contributes to enlightening the dynamics of Miles and Snow’s adaptive cycle. Indeed, viewing Miles and Snow’s typology from the configurational perspective of BMI provides a clearer picture of the adaptive cycle through which BMI reflects the path-dependent process of the formation of the firm’s strategic posture through the transformation of its business model.
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Chinho Lin, Yu-Wen Chiu, Wen-Chieh Chen and Shu-Fang Ting
The aim of this article is to construct a performance evaluation framework that can be employed in companies to enhance their business operations and strengthen their financial…
Abstract
Purpose
The aim of this article is to construct a performance evaluation framework that can be employed in companies to enhance their business operations and strengthen their financial advantage in the current environment. To validate the approach, a case example has been included to assess the practicality and validity of this approach when applied in a real environment.
Design/methodology/approach
This study focuses on an important part of the strategic planning process: internal scrutiny and environmental (external) scanning, in which an evaluation of company performance is divided into two stages by using network DEA and the cross-efficiency approach. In addition, this article employs Miles and Snow's typology for classifying the strategies used by companies.
Findings
The analytical results show that the proposed framework can be useful for companies seeking to evaluate which strategies may be the most appropriate, based on Miles and Snow's typology, to effectively reallocate limited resources.
Research limitations/implications
The evaluation in this study only uses financial data and does not take other nonfinancial indicators into consideration.
Originality/value
This research provides value by classifying each company included in the study in terms of its capability and financial efficiency according to Miles and Snow's system of strategy classification. Second, an internal and external performance measuring framework is constructed. Finally, some propositions for top management are provided by analyzing the financial advantages of using a performance evaluation framework that can help top management make decisions more objectively.
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Vicente Roca‐Puig and Juan Carlos Bou‐Llusar
Miles and Snow’s (1978) model posits that organizational performance is dependent upon the degree of consistency (fit) that managers establish between organizational and…
Abstract
Miles and Snow’s (1978) model posits that organizational performance is dependent upon the degree of consistency (fit) that managers establish between organizational and environmental elements. However, different interpretations of the concept of fit coexist in the literature. We argue that in this model, consistency can be defined as a pattern of “equivalent covariance”, which is operatively created through the use of confirmatory factor analysis. The form of fit as covariance leads to the view of “configuration as quality”, in that the basic subject is the study of the interrelationships among organizational and environmental elements. The concept of fit as covariance is decidedly different from the traditional concept of fit as difference, which regards configuration as a typology or taxonomy. The covariance perspective of configurational theory is underused; for this reason, we apply this analytical perspective to a sample of 229 companies. The empirical results confirm that consistency positively influences organizational performance.
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This paper aims to characterize the French public hospitals (FPHs) according to their strategic behaviour. Until recently, FPHs used to ignore strategic issues, for their mission…
Abstract
Purpose
This paper aims to characterize the French public hospitals (FPHs) according to their strategic behaviour. Until recently, FPHs used to ignore strategic issues, for their mission was clearly defined by regulating authorities and their activities were quasi‐automatically funded by the latter. This situation fundamentally changed as the environment of all “health care providers” became more demanding: FPHs have now to engage in a strategic process. The paper seeks to focus on the content of FPHs' strategies, and compare our results with standard findings of the strategic management literature, notably the strategic behaviour typologies established by Miles and Snow and Zaleznik and Kets de Vries.
Design/methodology/approach
A three‐stage empirical approach is conducted, mixing qualitative and quantitative methods. The measurement stage, based on a questionnaire survey realized with the support of a professional union, gathered the answers of 276 FPHs' decision‐makers, representing 51 per cent of the target population. This stage allows the formation of classes among these respondents, according to the environmental, organisational, and strategic features they describe.
Findings
The results are globally consistent with Miles and Snow's and Zaleznik and Kets de Vries' typologies. This is noteworthy since they were obtained in a different context and with different methodological approaches.
Research limitations/implications
This article tackles the issue of the universality of the strategic process.
Practical implications
Finally, implications for policy makers and hospitals' managers are drawn from the study.
Originality/value
What mostly differentiates the paper' results from the standard typologies is that FPHs can be separated according to the alliances criterion.
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Nikolaos Sakellarios, Abel Duarte Alonso, Oanh Thi Kim Vu, Seamus O'Brien, Seng Kok and Santiago Velasquez
The purpose of this study is to examine various key aspects associated with entrepreneurs’ behaviour following a long-term crisis. Specifically, the study compares the perceptions…
Abstract
Purpose
The purpose of this study is to examine various key aspects associated with entrepreneurs’ behaviour following a long-term crisis. Specifically, the study compares the perceptions of female and male entrepreneurs operating in Cyprus and Greece concerning success factors and firm performance in the aftermath of the global financial crisis. Conceptually, the study considers the organisational adaptation literature (Miles and Snow’s typology).
Design/methodology/approach
The views of female and male micro and small firm owners-managers operating in Greece and Cyprus, a total of 406, were gathered through a questionnaire. To analyse the quantitative data, independent samples t-test and exploratory factor analysis were applied.
Findings
Participants’ responses reveal similar levels of perceived importance between genders regarding adaptive measures and strategies to confront a long-term crisis, as well as perceived firm performance. Nevertheless, exploratory factor analysis highlights differences in how male/female entrepreneurs perceive actions that, as in the case of financial management, can safeguard the immediate outlook of the firm.
Originality/value
While scholarly discourses on gender and entrepreneurship abound, important knowledge gaps still exist, for instance, in entrepreneurs’ problem-solving strategies adopted by female and male entrepreneurs following crises. In addressing this scholarly gap cross-culturally, that is, drawing on cross-national data (Cyprus and Greece); the present study makes an important contribution. Empirically, the study ascertains similar entrepreneurial behavioural characteristics between female-male entrepreneurs. Theoretically, the study validates Miles and Snow’s typology and develops a theoretical framework linking the typology and dimensions emerging from the empirical findings.
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Fernando J. Garrigós‐Simón and Daniel Palacios Marqués
Our paper contrasts and validates the relevance of Miles and Snow (1978) and Robinson and Pearce (1988) strategic models, and their causal relationships with performance. The…
Abstract
Our paper contrasts and validates the relevance of Miles and Snow (1978) and Robinson and Pearce (1988) strategic models, and their causal relationships with performance. The empirical study was carried out on a sample of 189 enterprises from the Spanish hospitality sector. The results confirm the relevance of both models, and the importance of the different strategies as a source to explain performance. The analysis uses structural equation models and variance analysis (ANOVA) methodologies.
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Larry P. Pleshko, Richard A. Heiens and Plamen Peev
The purpose of this paper is to take a contingency theory approach to examine how performance is affected by the relationships between the Miles & Snow strategic groupings and a…
Abstract
Purpose
The purpose of this paper is to take a contingency theory approach to examine how performance is affected by the relationships between the Miles & Snow strategic groupings and a variety of marketing strategy concepts, including a firm's service focus, service growth, market coverage, marketing initiative, market growth, Porter strategy, and market orientation.
Design/methodology/approach
Data for the study were gathered from a statewide survey among 125 chief executives of credit unions belonging to the Florida Credit Union League (FCUL). ROA figures were derived from government-mandated accounting reports in the state of Florida. ANOVA and correlation analysis were employed to analyze data.
Findings
This study shows that firms that match an aggressive Miles and Snow profile with a more aggressive approach to seven other strategy dimensions often enjoy higher market share relative to credit unions characterized by a different alignment of the various aspects of marketing strategy. The results also suggest that achieving such a fit is not relevant to maximizing a firm's ROA.
Research limitations/implications
The research sample was biased toward medium to larger firms that may possess strategic resources superior to those of the smaller firms in the industry. Also, credit unions may tend to have somewhat less aggressive profit objectives compared to other institutions in the banking industry.
Practical implications
The findings outline to financial services executives the benefits of considering all dimensions of corporate strategy simultaneously, rather than one at a time.
Originality/value
The paper illustrates how aligning certain aspects of marketing strategy can boost particular performance indicators and provides insight as to what the most appropriate alignments are depending on the circumstances.
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Care Elwood Williams and Eliza C.Y. Tse
Proposes primarily to test empirically Smith′s entrepreneurialtypology and Miles and Snow′s typology of strategy in the restaurantsector, and then to establish whether or not…
Abstract
Proposes primarily to test empirically Smith′s entrepreneurial typology and Miles and Snow′s typology of strategy in the restaurant sector, and then to establish whether or not there is a relationship between type of entrepreneur and type of strategy. Evidence suggests that Smith′s two entrepreneurial types may not be mutually exclusive and that a third group of entrepreneurs exists combining characteristics from both Smith′s craftsmen and opportunistic types. Finds support for Miles and Snow′s four generic strategies of defender, prospector, analyser and reactor. Through the use of discriminant analysis, it was possible to demonstrate a relationship between type of entrepreneur and type of strategy.
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