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Open Access
Article
Publication date: 3 October 2022

Goran Vlasic

As family and nonfamily businesses differ in how they do business, the focus of this manuscript is on understanding how strategy-level models can be misinterpreted if…

Abstract

Purpose

As family and nonfamily businesses differ in how they do business, the focus of this manuscript is on understanding how strategy-level models can be misinterpreted if family involvement is not considered. Thus, in this manuscript, the focus is on understanding the extent to which strategic orientations (market orientation and technology orientation, which reflect strategic approach), strategic performance metric focus (financial-based, optimization-based and market-based, which reflect strategy evaluations) and strategic audacity (which reflects boldness in envisioning and delivering strategic outcomes) play a role in driving firm performance – in family businesses vs nonfamily businesses. Understanding how these drivers impact performance differently in family vs nonfamily businesses enables companies to better direct their strategic efforts.

Design/methodology/approach

After presenting theoretical concepts, authors use regression analysis on a sample of companies in a developing European Union (EU) country (n = 282) to evaluate the impact of strategic orientation, strategic performance metric focus and strategic audacity on firm performance separately in three samples: the full sample (consisting of both family and nonfamily-owned firms), sample of family businesses and the sample of nonfamily businesses.

Findings

The role of strategic orientation, strategic audacity and focal goals in driving firm performance differs depending on the company type (family vs nonfamily). In the case of nonfamily businesses, strategic audacity and technology orientation with the focus on efficiencies and markets are driving firm performance. In the case of family businesses, both market and technology orientation are important drivers of performance; the focus on financial and market indicators of performance is positively impacting performance, while the focus on efficiency indicators is diminishing the performance of family businesses. Thus, results show that of the performance drivers for family businesses, some are insignificant (strategic audacity), while some even have a negative impact (focus on optimization-based measures of performance) on family businesses' performance. Moreover, results show that some of the drivers of performance in case of family businesses (market orientation and focus on financial-based measures of performance) are not drivers of outstanding performance in the case of nonfamily businesses.

Practical implications

Best practices differ for family vs nonfamily businesses. In case of family businesses, comparing them to nonfamily businesses, market orientation and the focus on financial-based measures of performance have a greater impact on firm performance, while, at the same time, family businesses should refrain focusing on pursuing optimization-based measures of performance as such pursuit drives down their performance. Understanding the drivers of performance specific to family businesses will enable such firms to better navigate contexts characterized by ambiguity and uncertainty.

Originality/value

The manuscript evaluates how models, generally researched in the overall firm metrics, differ between family businesses and nonfamily businesses, thus delivering new insights into the important marketing concepts.

Details

Journal of Family Business Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2043-6238

Keywords

Book part
Publication date: 23 December 2005

Jerayr Haleblian and Nandini Rajagopalan

In our framework, we examine the influence of both reactive and proactive cognitive variables on strategic change. Reactive sources that impact strategic change are…

Abstract

In our framework, we examine the influence of both reactive and proactive cognitive variables on strategic change. Reactive sources that impact strategic change are perceptions and attributions – cognitions that determine the “what” and the “why” of performance. Perceptions are first-order cognitions that assess what is the performance feedback: positive or negative? After performance feedback is perceived, attributions are second-order cognitions that attempt to establish why the performance is positive or negative.

Details

Strategy Process
Type: Book
ISBN: 978-1-84950-340-2

Book part
Publication date: 25 October 2017

Ron Sanchez, Jeremy Galbreath and Gavin Nicholson

In this paper we develop a model for researching the influence that a board of directors can have on improving an organization’s sustainability performance. Our model…

Abstract

In this paper we develop a model for researching the influence that a board of directors can have on improving an organization’s sustainability performance. Our model explores sources of cognitive flexibility of boards needed to recognize and respond to the need for improved sustainability performance. We first define concepts of sustainability, sustainability competence, and sustainability performance. We then analyze two forms of board capital (a board’s human capital and its social capital) and three aspects of a board’s information processing (its patterns of information search, discussion and debate, and information absorption) that we suggest affect a board’s cognitive flexibility and thereby influence whether a board decides to adopt sustainability performance goals. Our model also suggests that an organization’s strategic flexibility – as represented by its current endowments of resource flexibilities and coordination flexibilities – will moderate the relationship between a board’s decision to adopt sustainability performance goals and an organization’s subsequent achievement of those goals. We also suggest that our model is generally relevant to any research seeking to predict the influence of boards on strategic change in many forms, not just to research focused on sustainability issues.

Details

Mid-Range Management Theory: Competence Perspectives on Modularity and Dynamic Capabilities
Type: Book
ISBN: 978-1-78714-404-0

Keywords

Open Access
Article
Publication date: 5 July 2022

Zafer Adiguzel and Fatma Sonmez Cakir

The aim of this study is to evaluate the relationship between innovative climate, strategic orientation, work motivation, business performance and job performance.

Abstract

Purpose

The aim of this study is to evaluate the relationship between innovative climate, strategic orientation, work motivation, business performance and job performance.

Design/methodology/approach

Within the scope of the research, a survey was conducted with 400 engineers working in organizations operating within companies producing spare parts for automobile companies. IBM SPSS 25, IBM SPSS AMOS and LISREL programs were gradually used, and the data obtained were evaluated and analyzed.

Findings

The importance of strategic orientation and work motivation for organizations can be seen in the analysis results in terms of their positive effects.

Practical implications

In the production sector, where innovation and competition activities take place, not only strategic decisions but also motivation for employees must be realized within the organizational culture in order for the organizations to be successful. Strategic orientation is effective in achieving innovation and creation to the extent that employees are motivated.

Originality/value

In terms of successful performance, it is very important to manage companies with the right strategic understanding and to involve the employees. In order to realize the innovation climate and to be successful in performance criteria, motivation is considered a key factor, in particular for the automobile sector. Automobile companies are now turning to electric vehicle production using new generation technologies. However, they also attach importance to the use of smart technologies in cars. For this reason, the effects of strategic orientation and work motivation on performance and innovation are investigated in companies producing automobile spare parts.

Details

European Journal of Management Studies, vol. 27 no. 2
Type: Research Article
ISSN: 2183-4172

Keywords

Article
Publication date: 3 January 2022

Nii Amoo, George Lodorfos and Nehal Mahtab

The purpose of this paper is to provide a review of literatures and previous studies on the relationship between strategic planning and performance and propose conceptual…

Abstract

Purpose

The purpose of this paper is to provide a review of literatures and previous studies on the relationship between strategic planning and performance and propose conceptual designs and hypotheses using multidimensional constructs to advance the understanding of this relationship, contribute to existing debates in the extant literature and make recommendations.

Design/methodology/approach

A semi-systematic literature and previous studies (studied by various groups of researchers within diverse disciplines) review approach has been used in this paper to contribute to the debate on whether strategic planning affects performance and how. Using more recent knowledge about the strategic planning concept, the semi-systematic review looked at how research within strategic planning has progressed over the past five decades and its relationship with performance.

Findings

In the past, the strategic planning performance relationship has been treated as a black box and this paper proposes that the conceptualisation of a number of constructs and the inclusion of strategy implementation will help converting the black box into a white box. To strengthen support for the debate regarding the relationship between strategic planning and performance this paper proposes a further conceptual/operational design, mathematical expressions and hypotheses to be tested empirically in further studies. The proposal provides a conceptualisation of the major constructs (strategy development; strategy implementation; and performance), and the use of strategy implementation as a mediator and/or as a moderator in the planning performance relationship.

Research limitations/implications

This study is limited due to fact that the findings have not been tested empirically, it is not a cross-sectional and/or a longitudinal research and only a limited number of dimensions of strategy development and strategy implementation have been used. In addition, the approach used is a semi-systematic review followed by quantitative thinking, which, in turn, typically assumes the relevance of and a warrant mainly from a positivist epistemology.

Originality/value

The proposed design developed in this paper ensures that core issues in planning performance relationships research are addressed. Furthermore, the inclusion of strategy implementation in planning performance relationship studies means that the whole chain of activities in the strategy process is being considered, drawing a complete and comprehensive conclusion on how strategic planning affects an organisation’s performance. In addition, by separating strategy implementation and by not combining it with formulation/formation activities will theoretically and analytically help to evaluate the importance or role of each stage of the strategy process. Moreover, the conceptualisation and operationalisation of the key concepts as multidimensional constructs contribute to past research gaps. Finally, this paper provides some clarity to many contradictory findings concerning the strategic planning and performance relationship.

Details

International Journal of Organizational Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 21 December 2021

Justyna Światowiec-Szczepańska and Beata Stępień

The purpose of this study is to investigate the links between a company’s position in a corporate network with its financial performance and strategic risk in the context…

Abstract

Purpose

The purpose of this study is to investigate the links between a company’s position in a corporate network with its financial performance and strategic risk in the context of the largest Central European stock market.

Design/methodology/approach

This study integrates the theory of social network analysis (SNA) with corporate governance theory with a special focus on resource dependence theory. Using the framework of network social analysis, the authors use network measures of social capital and embeddedness.

Findings

The results of studying companies listed on the Polish stock exchange indicate that a company’s corporate network position has a significant negative impact on strategic risk while having no influence on its financial performance. The research also highlights the importance of a firm’s corporate governance model for both performance and strategic risk.

Research limitations/implications

The data collected, and SNA measures used made it possible to conduct a cross-sectional study. Compared to longitudinal studies, this type of study has a couple of disadvantages addressed in the paper. In the future, the dependencies observed in this study should be tested using longer-term data.

Originality/value

To the best of the author’s knowledge, this is the first paper integrating the corporate personal and capital networks to test risk and performance dependencies in the context of Poland’s corporate governance model. The findings and conclusions can also be applied to analyzing Central and Eastern Europe stock markets.

Details

Corporate Governance: The International Journal of Business in Society, vol. 22 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 7 June 2021

Melek Akın Ateş and Huriye Memiş

This paper aims to empirically examine the moderating role of strategic purchasing on the relationship between supply base complexity (SBC) and purchasing performance.

Abstract

Purpose

This paper aims to empirically examine the moderating role of strategic purchasing on the relationship between supply base complexity (SBC) and purchasing performance.

Design/methodology/approach

Survey data were collected from 209 firms listed in the Capital Top 500 Firms of Turkey. Measurement properties were assessed via confirmatory factor analysis, and the conceptual model was tested via hierarchical regression analysis. A supplementary analysis based on 14 semi-structured interviews was conducted to provide further insights on the survey findings.

Findings

Regarding structural SBC, the results suggest that horizontal complexity and supplier interaction improve purchasing performance, but only in firms with high strategic purchasing. By contrast, spatial complexity reduces purchasing performance in firms with high strategic purchasing, while supplier differentiation does not have any effect. Regarding dynamic SBC, the results show that both delivery complexity and supplier instability reduce purchasing performance when firms have low strategic purchasing. Interviews further suggest that firms with high strategic purchasing leverage the positive effects and mitigate the negative effects of SBC by having a long-term focus, considering multiple performance criteria and adopting advanced purchasing practices.

Practical implications

In contrast to what is widely posited in the existing literature, the nuanced findings of this study reveal that complexity is not always detrimental. The results suggest that practitioners should aim for high levels of strategic purchasing to suppress the negative effects of SBC while leveraging its benefits.

Originality/value

By investigating the contingency role of strategic purchasing, this study provides novel insights into the under-investigated issue of how to best “manage” SBC.

Details

International Journal of Operations & Production Management, vol. 41 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 9 July 2021

Henry F.L. Chung and Mia Hsiao-Wen Ho

This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic) performance

Abstract

Purpose

This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic) performance. This study further explores the roles of exploitative and exploratory organizational learning in the relationships between international competitive strategies and export performances. To fill research gaps, this study intends to provide guidance on how varied exploitative/exploratory organizational learning and cost leadership/differentiation strategy combinations would affect export performance. The outcomes of this study provide a new match and mis-match conceptualization to extant international competitive strategy and organizational learning literature.

Design/methodology/approach

This study selected New Zealand (NZ) exporting as the research setting because exporting plays such a vital role in NZ’s economy and NZ exporting firms have long been highly competitive in international markets (e.g. meat and dairy exporters), with the primary data collected through surveys conducted in 2010 and 2013. This study adopted a three-year lagged performance approach.

Findings

Cost leadership strategy has a positive effect on market share performance. This effect is enhanced by exploitative learning but dampened by exploratory learning. Cost leadership also has a positive effect on strategic performance, which is not affected by exploitative and exploratory learning. Differentiation strategy bears no relation to market share and strategic performance, even allowing for exploitative and exploratory learning. Collectively, the contingent role of organizational learning in the international competitive strategies and export performance framework is far more comprehensive than was expected.

Research limitations/implications

This study reveals that a match between cost leadership strategy and exploitative learning may result in a superior market share. The configuration of differentiation strategy and exploitative learning and the integration of cost leadership strategy and exploratory learning are suggested as mis-matches, as these combinations would not lead to any significant and positive market share and strategic performance. Unexpectedly, the co-alliance of differentiation strategy and explorative learning is not suggested as a match, as it does not result in a superior market share and strategic performance. This latter outcome suggests that the differentiation strategy-export performance link may be stimulated by other moderating factors (e.g. business managerial ties).

Practical implications

While choosing an appropriate international competitive strategy, managers may use cost leadership over differentiation strategy to achieve successful export performance in both the market share and strategic perspectives. Export managers focusing on cost leadership strategy may further implement exploitative learning instead of explorative learning, when market share is vital. Meanwhile, they may note that explorative learning may not have a moderating effect on enhancing strategic performance through cost leadership. These points signify that exploitation of existing knowledge may be more effective than exploration of new knowledge for market share expansion when cost leadership strategy is devoted to exporting activities. Differentiation strategy, however, does not influence market share and strategic performance in exporting, even with an alignment of exploitative/exploratory learning. Managers are urged to pay attention to the mis-match of differentiation strategy and organizational learning when market share and strategic performance are the priorities in export performance evaluation.

Originality/value

This study contributes to the organizational learning literature by providing a new match and mis-match conceptualization relating to international competitive strategy and export performance. The new framework provides directions on when firms should use organizational learning to enhance their competitive strategies (a match scenario) and when they should not use it (a mis-match scenario). This study broadens the existing research that has mainly focused on alignment combinations such as organizational learning-internationalization strategy and organizational learning-social network.

Article
Publication date: 11 November 2014

Daniel Kipkirong Tarus and Federico Aime

– The purpose of this study is to examine the effect of boards’ demographic diversity on firms’ strategic change and the interaction effect of firm performance.

2767

Abstract

Purpose

The purpose of this study is to examine the effect of boards’ demographic diversity on firms’ strategic change and the interaction effect of firm performance.

Design/methodology/approach

This paper used secondary data derived from publicly listed firms in Kenya during 2002-2010 and analyzed the data using fixed effects regression model to test the effect of board demographic and strategic change, while moderated regression analysis was used to test the moderating effect of firm performance.

Findings

The results partially supported board demographic diversity–strategic change hypothesis. In particular, results indicate that age diversity produces less strategic change, while functional diversity is associated with greater levels of strategic change. The moderated regression results do not support our general logic that high firm performance enhances board demographic diversity–strategic change relationship. In effect, the results reveal that at high level of firm performance, board demographic diversity produces less strategic change.

Originality/value

Despite few studies that have examined board demographic diversity and firm performance, this paper introduces strategic change as an outcome variable. This paper also explores the moderating role of firm performance in board demographic diversity–strategic change relationship, and finally, the study uses Kenyan dataset which in itself is unique because most governance and strategy research uses data from developed countries.

Details

Management Research Review, vol. 37 no. 12
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 29 May 2018

Mohammad Akhtar and Sushil Sushil

Business performance management describes the processes, methodologies, metrics and systems needed to measure and manage the performance of an enterprise. Traditional…

3608

Abstract

Purpose

Business performance management describes the processes, methodologies, metrics and systems needed to measure and manage the performance of an enterprise. Traditional performance management systems were based on financial and productivity measures but the alternate measures proposed in last more 25 years have strategic focus and incorporate variety of performance measures such as efficiency, effectiveness, productivity, quality, customer satisfaction, innovation and employee satisfaction in addition to financial. Globalization and modernization have created a business environment uncertain with associated risks which has necessitated the incorporation of various types of flexibilities such as strategic, technical, operational, information system (IS), etc. Critical success factors and implementation issues also need to be incorporated to succeed. The purpose of this paper is to present the strategic performance management system (SPMS) designed, incorporating flexibility and implementation issues, and its effectiveness empirically validated from Indian oil industry.

Design/methodology/approach

Based on literature review and gaps identified, a proposed model of enterprise performance management system incorporating flexibility, critical success factors and implementation issues was developed. Macro- and micro-level factors impacting the effectiveness of the model were identified, and hypotheses were developed and tested empirically from the survey study of Indian oil industry.

Findings

The finding met, by and large, most of the research objectives. In total, 7 macro- and 11 micro-level factors came out from the study. The strategy planning, strategy implementation, strategic flexibility (SF), SPMS design, information system flexibility (IF) flexibility, implementation issues and critical success factors, and performance feedback and learning are the macro-level factors impacting the SPMS effectiveness in measuring and managing performance of an enterprise. The SPMS implementation issues have proved to be major driver of effectiveness.

Research limitations/implications

The research like many such researches had limited resources, data availability and bias of respondents. However, the model was statistically validated for its reliability and hypothesis testing. The research has added to literature on SPMS as integrated model incorporated SF, information flexibility and critical success factors. However, the effect of other types of flexibilities such as organizational, operational, HR, marketing, etc., and other stakeholders should also be studied in future research to broaden the findings.

Practical implications

The validated SPMS has practical implications for academics and researchers. Strategic and IF, and critical success factors have been incorporated in the integrated model to take care of business uncertainties so that it is strategically aligned and facilitate in effective SPMS use and implementation.

Social implications

Though it has no direct social implication but, if adopted for social projects and not-for-profit organizations, it will have social benefits of efficient and effectiveness delivery of social projects and initiatives.

Originality/value

This is an original work carried out by the authors. The validated model along with interpretation is presented.

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