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1 – 10 of over 124000The purpose of this paper is to examine the nature of change readiness and resolve as a principal feature of strategic teams. Change leadership and management in the…
Abstract
Purpose
The purpose of this paper is to examine the nature of change readiness and resolve as a principal feature of strategic teams. Change leadership and management in the context of strategy, talent and culture provide the organization with the capacity for navigating change at the process, category and business levels. This paper provides a practical look at the cultivation of strategic teams as agents for making change strategy happen.
Design/methodology/approach
The authors have examined a series of variables that inform the strategic agenda, talent blocks and beams, and the cultural agenda for organizations large and small. They have built a general framework for mapping and engaging what serves as a strong mind-set of change readiness and resolve, along with specific team-building elements for learning and development.
Findings
Strategic teams that are part of the structure and culture of the organization serve as development grounds for change competence and capacity at the group and individual levels. Further, because there are several types of strategic teams with diverse roles and functions, the change readiness and resolve mechanics are subject to experimentation and adaptation. This results in a strong mind-set for change leadership and management and the ability to deploy effectively across a range of situations, needs and challenges.
Originality/value
This work offers a practical set of views on change and adaptive capacity, and the development pathways that afford an organization the ongoing preparation of individuals and groups for changes in process and policy, programs and categories and business models through the most demanding transformation journeys.
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Shinhye Ahn, Cecile K. Cho and Theresa S. Cho
This study investigates how a firm's regulatory focus (i.e. promotion and prevention foci) affects growth- and efficiency-oriented strategic change, highlighting the role…
Abstract
Purpose
This study investigates how a firm's regulatory focus (i.e. promotion and prevention foci) affects growth- and efficiency-oriented strategic change, highlighting the role of organizational-level regulatory focus as a cognitive frame within which to interpret performance feedback and its subsequent effects on strategic decisions.
Design/methodology/approach
The authors collected longitudinal data on 98 S&P 500 manufacturing firms for a seven-year period. The panel data, which includes texts from the firms' 10-K filings, were then analyzed using a feasible generalized least squares (FGLS) regression estimator to test the authors’ hypotheses.
Findings
A firm's strategic change orientation is affected by its regulatory focus and performance feedback: a promotion focus increases the magnitude of growth-oriented strategic change, while a prevention focus favors efficiency-oriented strategic change. Furthermore, both foci moderate the effect of performance feedback on the strategic change orientation: under negative performance feedback, a promotion (prevention) focus increases (decreases) the magnitude of growth-oriented strategic change relative to that of efficiency-oriented change. The findings provide robust evidence that regulatory focus can influence how organizations learn from feedback and formulate strategic change.
Research limitations/implications
The authors’ examination of regulatory focus and organizational learning process relied on large manufacturing firms in the USA. However, learning process could be quite different in small and/or young firms. Future work should expand to a wider range of organizational types, such as nascent entrepreneurial ventures. In addition, the authors’ measurement of regulatory focus using corporate text has inherent weakness and could be supplemented with alternative research methods, such as surveys, interviews or experiments. All in all, however, the findings of this study offer a novel behavioral perspective while demonstrating that a regulatory focus is an important antecedent of organizational learning.
Practical implications
This study highlights the importance of motivational characteristics of the top managers in the process of organizational learning from performance feedback. Furthermore, recruitment of a new top manager should be aligned with the organizational context, values and goals. In addition, corporate governance systems such as managerial compensation schemes need to be carefully designed so as to maximize organizational resilience, especially in the context of performance downturn or environmental change. Establishing a constructive organizational culture so that strategic decisions are not overly swayed by the performance outcomes would also be crucial to the organizational learning process.
Social implications
This study highlights the importance of understanding the motivational orientations of top managers in organizational learning. In terms of managerial compensation, for instance, an optimal incentive system should reflect the desired performance output by encouraging managerial behavior that corresponds to its objective. Furthermore, motivational orientation of new recruits should be considered in the context of the composition of the top management team members in order to achieve “optimal fit.” In addition, this study suggests that top executives' regulatory focus can be a key factor for organizations in balancing goals of different value orientations.
Originality/value
The findings of this study demonstrated that a firm-level regulatory focus has a significant effect on organizational learning and strategic change following performance feedback. The authors hope this study provides an impetus for future discussions on the microcognitive mechanisms of organizational learning by exploring the relations between organizations' regulatory foci, performance feedback and strategic change orientations.
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This study aims to examine how senior foreign executives in a top management team catalyse strategic change in firms that originated from emerging markets (EMs). It…
Abstract
Purpose
This study aims to examine how senior foreign executives in a top management team catalyse strategic change in firms that originated from emerging markets (EMs). It further examines the moderating effects of organisational size and uncertainty avoidance (UA) on the positive relationship between senior foreign manager and strategic change in an organisation.
Design/methodology/approach
The panel data econometrics and multilevel analyses were adopted to run the model. The author tests hypotheses on 263 emerging market firms (EMFs), originating from nine EMs.
Findings
Empirical results reveal that senior foreign managers are active agents who can promote and implement strategic change in an organisation. They possess a different set of values, knowledge and experiences that can trigger strategic change. In addition, firm size and UA weaken the relationship between senior foreign manager ratio and strategic change of a firm..
Practical implications
This study indicates that recruiting committees of EMFs should consider hiring senior foreign managers to foster a higher degree of strategic change. Nevertheless, firm size and UA may impose implementation difficulties for senior, foreign managers. As a result, the focal firm should be flexible and open to change.
Originality/value
This study aims to contribute to strategic change and top management team internationalisation literature by promoting the role of senior foreign managers and national culture on strategic change.
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Bert Flier, Frans A.J. van den Bosch, Henk W. Volberda and Charles Baden-Fuller
How do large well-established firms renew themselves in an increasing turbulent environment? Is there a generic pattern of change or is each change journey rather…
Abstract
How do large well-established firms renew themselves in an increasing turbulent environment? Is there a generic pattern of change or is each change journey rather idiosyncratic? We posed five questions about the nature of renewal patterns. First, how do firms combine external versus internal initiatives in a trajectory of strategic renewal? Second, how does the balance of competence building and competence leveraging evolve in a trajectory of strategic renewal? Third, what are the sequences of action in a strategic renewal process? Fourth, do firms differ regarding speed of their renewal processes? Finally, do different strategic renewal trajectories give rise to different or similar outcomes? Using a simple framework and new metrics we described and analyzed the strategic renewal journeys of the five largest financial service firms in the Netherlands during the period 1990–1997. We found equifinality in viable trajectories of strategic renewal. In four out of five firms, they result in similar outcomes due to mimetic behavior. Nonetheless, one firm showed deviant strategic behavior.
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.
Owing to the inconclusive results of prior studies on the strategic change–firm performance relationship, this paper extends the marketing strategy literature by…
Abstract
Purpose
Owing to the inconclusive results of prior studies on the strategic change–firm performance relationship, this paper extends the marketing strategy literature by postulating an “inverted U-shaped” relationship and the moderating roles of “organizational learning” (OGL) and “strategic flexibility” (STF).
Methodology/approach
A self-administered survey was employed to collect data from different strategic business units of 550 firms operating in Thailand. The data collection yielded a response rate of 17.27%. Confirmatory factor analysis was used to validate the scales, and path analysis was employed to test the hypotheses in this study.
Findings
Although no significant curvilinear relationship was found, the directions of the path coefficients are consistent with the hypothesis. Both OGL and STF serve as significant moderators in the marketing strategic change (MSC)–business performance relationships. While STF strengthens the relationship, the generative OGL tends to weaken it.
Practical implications
Managers need to understand the type of learning that fits different types of strategic changes in order to enhance business performance. Generative OGL may seem harmful for changes that are less proactive. Furthermore, firms should incorporate flexibility in managing political, economic, and financial risks in their strategies by emphasizing investments and cost sharing, flexible human capital allocation, and spontaneous and impromptu actions.
Originality/value
This study extends international marketing strategy literature by empirically testing the hypotheses in an emerging Asian economy. The research proposes a nonlinear relationship between MSC and business performance as well as introduces the moderating roles of OGL and STF.
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In this paper we extend established concepts of product and process architectures to propose a concept of organization architecture that defines the essential features of…
Abstract
In this paper we extend established concepts of product and process architectures to propose a concept of organization architecture that defines the essential features of the system design of an organization needed to achieve an effective strategic alignment of an organization with its competitive and/or cooperative environment. Adopting a work process view of organization, we draw on concepts of product and process architectures to elaborate fundamental elements in the design of an organization architecture. We suggest that organization architectures may be designed to support four basic types of change in organization resources, capabilities, and coordination, which we characterize as convergence, reconfiguration, absorptive integration, and architectural transformation. We also suggest the kinds of strategic flexibilities that an organization must have to create and implement each type of organization architecture. We identify four basic types of strategic environments and consider the kinds of changes in resources, capabilities, and coordination that need to be designed into an organization's architecture to maintain effective strategic alignment with its type of environment. We then propose a typology that identifies four basic ways in which organizational architectures may be effectively aligned with strategic environments. Extending the reasoning underlying the proposed alignments of organization architectures with strategic environments, we propose a strategic principle of architectural isomorphism, which holds that maintaining effective strategic alignment of an organization with its environment requires achieving isomorphism across a firm's product, process, and organization architectures. We conclude by considering some implications of the analyses undertaken here for competence theory, general and mid-range strategy theory, and organization theory.
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Alain Guiette and Koen Vandenbempt
This paper seeks to develop a mid-range theory of how change recipient sensemaking processes affect the realization of strategic flexibility during simultaneous change in…
Abstract
Purpose
This paper seeks to develop a mid-range theory of how change recipient sensemaking processes affect the realization of strategic flexibility during simultaneous change in professional service firms.
Methodology/approach
The research presented is based on an exploratory embedded case study adopting a qualitative interpretive methodology, conducted at a professional service organization. A sensemaking lens was adopted in order to study organizational change processes. Data was collected through semi-structured open-ended in-depth interviews, and analyzed using first and second order analysis, inspired by the methodology used by Corley and Gioia (2004).
Findings
We identified four determinants of change recipient sensemaking: professional identification, dominant organizational discourse, equivocality of expectations, and cross-understanding between thought worlds. Case findings indicate that cognitive and affective dimensions of change recipient sensemaking are strongly interwoven in their effect on realizing strategic flexibility.
Research implications
We contribute to the competence-based strategic management literature by introducing the concept of change recipient sensemaking in understanding the realization of strategic flexibility; by identifying four major determinants in a context of simultaneous change in a professional service organization; and by highlighting the interwoven and mutually reinforcing cognitive and affective dimensions of professional’s process of constructing meaning.
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Although strategic changes and management control systems are relevant, there is the need for an evolution in the tools of performance measurement, analysis and control to…
Abstract
Although strategic changes and management control systems are relevant, there is the need for an evolution in the tools of performance measurement, analysis and control to understand the ability of the firms, at first, to face environmental variability and, then, to achieve objectives through the strategic change management. This study was dedicated to the issue of what measures are relevant during the strategic change process. It also proposes a multidimensional control system for strategic changes. The framework is based on: the literature review and analysis about strategic change, change management and performance measurement; a two-stage empirical research. Overall, the proposed control system can help firms in managing strategic changes.
Dyadic multi-dimensionality informs the variation that exists within and between network ties and suggests that ties are not all the same and not all equally strategic…
Abstract
Dyadic multi-dimensionality informs the variation that exists within and between network ties and suggests that ties are not all the same and not all equally strategic. This chapter presents a model of dyadic evolution grounded in dyadic multi-dimensionality and framed within actor-level, dyadic-level, endogenous, and exogenous contexts. These contexts generate both strategic catalysts that motivate network action and bounded agency that may constrain such network action. Assuming the need to navigate within bounded agency, the model highlights three strategic processes that demonstrate how dyadic multi-dimensionality underlies the evolution of strategic network ties.