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1 – 10 of over 134000The 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…
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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Mishari Alnahedh and Abdullatif Alrashdan
This paper aims to integrate insights from the behavioral theory of the firm and the dynamic capabilities perspective to explain how the historical and social attainment…
Abstract
Purpose
This paper aims to integrate insights from the behavioral theory of the firm and the dynamic capabilities perspective to explain how the historical and social attainment discrepancies motivate firms to change. Specifically, this paper proposes that a negative historical attainment discrepancy encourages the firm to engage in strategic change to solve its performance problems. In contrast, this paper advanced that a positive social attainment discrepancy motivates strategic change as a mechanism to bolster the firm’s position within the industry. Further, this paper integrated the moderating effects of industry dynamism and industry munificence.
Design/methodology/approach
This paper tests hypotheses using panel data on 2,435 US public firms over the years from 1996 to 2018. This paper uses a fixed-effects regression model to empirically test these hypotheses.
Findings
This paper finds empirical support for the effects of both the negative historical attainment discrepancy and the positive social attainment discrepancy on the firm’s tendency to engage in strategic change. As for the hypothesized moderating effects, this paper finds that industry munificence accentuated the effects of both attainment discrepancies on the firm’s tendency to engage in strategic change. However, the results do not support the hypothesized moderating effect of industry dynamism on either of these attainment discrepancies.
Originality/value
This paper contributes to the research on the separate effects of historical and social comparisons within the context of strategic change. Further, the paper bolsters our understanding of how performance feedback increases the firm’s tendency to change. Finally, the paper integrates theoretical views from the behavioral theory of the firm and the dynamic capabilities perspective on how socially high-performing firms may build and sustain their competitive advantage through organizational change.
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This paper seeks to explore the effect of performance duration (rather than intensity) on the subsequent initiation of strategic change by firms. Specifically, the effect of…
Abstract
Purpose
This paper seeks to explore the effect of performance duration (rather than intensity) on the subsequent initiation of strategic change by firms. Specifically, the effect of outperformance and underperformance duration on strategic change, as well as the moderating effect of environmental dynamism, is studied.
Design/methodology/approach
Using a fixed-effects model, analyzing a sample of 34,907 firm-year observations from 1980 to 2018 across 112 industries mostly supported proposed hypotheses.
Findings
Results revealed a U-shaped relationship between outperformance duration and strategic change and an inverted U-shaped relationship between underperformance duration and strategic change. The moderation role of environmental dynamism was only partially supported.
Originality/value
This study examines a new dimension of performance feedback, namely duration, rather than the widely used intensity of performance feedback, to enhance our understanding of the behavioral theory of the firm.
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Sérgio A.F. Pereira, João J. Ferreira, Hussain Gulzar Rammal and Marta Peris-Ortiz
The health sector is increasingly dynamic and complex, in which (strategic) change has become a constant in the sector's adaptation to different challenges. This study aims to…
Abstract
Purpose
The health sector is increasingly dynamic and complex, in which (strategic) change has become a constant in the sector's adaptation to different challenges. This study aims to meet the need to understand which trends in the literature on strategic change in the health sector and which elements comprise it.
Design/methodology/approach
To advance research in this area, the authors systematically review 285 articles collected from the Scopus database. The authors conducted a bibliometric analysis using the VOSviewer software by applying the bibliographic matching method to understand how these articles were grouped and thus characterise the literature trends.
Findings
Through a systematic literature review (SLR), this study analyses the various lenses of literature on strategic change in the context of the health sector, classifying and conceptually mapping existing research into four thematic groups: key factors in strategic change, theories and models underlying strategic change, decentralisation in strategic change and the challenges to strategic change in this millennium.
Research limitations/implications
The trends in the literature on strategic change in the health sector explore strategic change from different perspectives. Key features in strategic change suffered reciprocal influence from the theories/models of strategic change and decentralisation of health care so that the health sector could define strategies to respond to the challenges it faced.
Originality/value
The health sector has been in great prominence worldwide, specifically due to the recent events that have occurred on a planetary scale. Therefore, a systematic review is essential to help understand the strategic changes that have occurred in the health sector and their impact. The authors did not find any SLR that focuses on global strategic changes in the health sector, so this study will fill this gap, systematising the main topics on strategic change in the health sector. The authors also suggest an integrative research framework and a future research agenda.
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Xiaoyu Yang, Longzhu Dong and Abraham Nahm
This study aims to examine how business executives' political connections are associated with government subsidies and strategic change, and how they, in turn, influence firm…
Abstract
Purpose
This study aims to examine how business executives' political connections are associated with government subsidies and strategic change, and how they, in turn, influence firm performance, measured by return on assets (ROA) and market share.
Design/methodology/approach
Hypotheses were tested using the large firm-level dataset provided by the National Bureau of Statistics (NBS) of China for the period 2003–2013. This is one of the most comprehensive datasets of Chinese manufacturing companies and includes 321,722 firms on average per year, which spans over 37 industries.
Findings
The authors found that political connections, measured by senior executives' membership in the National People's Congress of China (NPC), were positively associated with government subsidies but were not associated with strategic change. Also, government subsidies, as the underlying mechanism, mediated the relationships between NPC membership and firm performance but strategic change did not.
Research limitations/implications
By examining the possible mediators between corporate political strategies and firm performance, the authors confirmed the thought that the impact of political connections on firm performance is a complex phenomenon and goes beyond a simple direct effect. However, future research could explore other mediators in this relationship.
Originality/value
While the direct relationship between political connections and firm performance has been examined in management literature, the results are mixed. For the first time, the authors addressed the gap and opened the “black box” – the underlying mechanisms of this relationship. This study's findings contribute to the literature on corporate political activity, strategic change, and their influences on firm performance.
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Ignacio Tamayo-Torres, Leopoldo J. Gutiérrez-Gutiérrez, Francisco Javier Llorens-Montes and Francisco J. Martínez-López
The purpose of this paper is to analyze the roles played by organizational learning (OL) and innovation in organizations immersed in the processes of adaptation and strategic fit…
Abstract
Purpose
The purpose of this paper is to analyze the roles played by organizational learning (OL) and innovation in organizations immersed in the processes of adaptation and strategic fit in dynamic and turbulent environments. The authors analyze whether OL and innovation act as sources of strategic fit, and whether strategic fit positively affects performance.
Design/methodology/approach
The authors use data from a survey of a representative sample of 204 respondents from European firms active in high-technology sectors (response rate: 10.42 percent) and structural equation modeling (using the EQS 6.1 program) to undertake a transversal study.
Findings
The model confirms that OL and the capacity to innovate positively influence managers’ decisions to adapt their organizations to changes in dynamic environments. The achievement of strategic fit, in turn, improves organizational performance. The authors propose considering the innovation climate as a facilitator of new product and process development, although the innovation climate is not a direct antecedent of fit.
Research limitations/implications
This study is limited by the fact that the analysis is cross-sectional and by the fact that all measures used are based on managers’ perceptions.
Practical implications
Managers should create and support an entrepreneurial culture that stresses continuous learning. They should also foster programs aimed at developing abilities, and promote the development of capabilities that facilitate acceptance of organizational change. Investments in building certain capabilities, such as OL and the capacity to innovate, are strategically justified, especially in turbulent environments.
Originality/value
This study is one of the first to investigate the complex interactions among OL, innovation, strategic fit, and performance. The results improve our understanding of the links between strategic fit and performance.
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The purpose of this paper is to provide a theoretical account of how firms make choices between dynamic capability-based and ad hoc problem-solving approaches toward strategic…
Abstract
Purpose
The purpose of this paper is to provide a theoretical account of how firms make choices between dynamic capability-based and ad hoc problem-solving approaches toward strategic change.
Design/methodology/approach
A model has been developed to answer the questions of how and under what conditions firms develop appropriate approaches to handle strategic change.
Findings
Drawing upon structural inertia theory (SIT) and the resource-based view (RBV), the model predicts that firms, regardless of their age and size, are more likely to adopt an ad hoc problem-solving approach to handle change in both highly dynamic and low-dynamic environments. However, in moderately dynamic environments, a dynamic capability-based approach may be more appropriate, depending on which theoretical logic (SIT or RBV) the decision is made.
Originality/value
The paper builds on the useful distinction made by Winter (2003) in terms of the ways to handle organizational change and extends the recent research on temporary vs sustainable competitive advantages to investigate how firms tackle strategic change within the contexts of both environmental dynamism and organizational attributes.
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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.
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.
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The purpose of this paper is to investigate how executives can rapidly gain employee acceptance for strategic change through reciprocal sensegiving. The author draw on a…
Abstract
Purpose
The purpose of this paper is to investigate how executives can rapidly gain employee acceptance for strategic change through reciprocal sensegiving. The author draw on a processual case study of a transformational European merger to study this question, highlighting the properties of reciprocity in making sense of urgent strategic change, then developing them through the lens of a gift exchange.
Design/methodology/approach
The author draws on several qualitative methods to study sensegiving and sensemaking processes in Alpha and Beta from 2011 to 2014: insider-outsider team meetings at the beginning, mid-way and at the end of the merger integration process, ethnographic field notes during a four-month research internship, one focus group meeting with Alpha and Beta managers after the announcement of the redistribution of managerial positions, interviews with a carefully selected sample of top and middle managers, participant observation in key sensegiving meetings with top managers and “custodians,” triangulation with secondary data from the database Factiva, and finally follow-up insider corroboration of the findings by the research intern who took up a management position at Alpha in 2014.
Findings
Likening executive and employee sensegiving to a gift-giving and gift-returning exchange, the author elucidates how executives induce employees to quickly “give in” to strategic change imperatives. the author single out the key third party role of custodians of reciprocity in the mechanism, using the metaphor of the Trojan horse to illustrate its executive use and point to the underexplored darker side of prosocial sensegiving dynamics.
Research limitations/implications
Further research should clarify the long-term advantages and disadvantages of the mechanism. The Trojan horse mechanism possibly sacrifices long-term reciprocity for short-term purposes. Following the example of executives in this case study, use of the Trojan horse mechanism should be followed by attention to socio-political balance concerns, including new procedures that clarify the link between value creation aims and employees’ collective contribution. Without such a cohesion-building exercise, employees’ feelings of procedural injustice may build up, resulting in negative reciprocity in subsequent change projects.
Practical implications
The work indicates that a leader’s visionary credentials are not the main source of her norm-shaping power in a project of urgent strategic change. Visionary credentials are welcomed by the dominant group of employees as long as they are framed as a symbolic management exercise that will not substantially impact socio-political balance. Substantively, employees make sense of the justice of urgent strategic change primarily through the lens of custodians and their “power from the past.”
Social implications
All in all, executives should use the Trojan horse mechanism sparingly, in contexts of urgent strategic change and institutionalized employee behavior. Working with sources and voices of resistance from lower levels of management is more likely to yield symbiotic integration benefits.
Originality/value
Applied to the problem of rapid strategic change in a non-crisis context, the Trojan horse mechanism is a solution to the question: how can executives avoid lengthy socio-political confrontations and quickly induce employee ownership of painful strategic changes?
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Chaiporn Vithessonthi and Amonrat Thoumrungroje
The primary purpose of this research is to review and discuss the potential associations among strategic change, organisational learning, and firm performance, and to propose a…
Abstract
Purpose
The primary purpose of this research is to review and discuss the potential associations among strategic change, organisational learning, and firm performance, and to propose a conceptual model to investigate such relationships.
Design/methodology/approach
The literature on the strategic change‐performance relationship was explored with the emphasis on elaborating the effects of frequency of strategic change on firm performance. In addition, a moderating role of organisational learning on such a relationship is introduced.
Findings
From the literature review, it is proposed that the relationship between strategic change and firm performance is an inverted U‐shape. Extremely frequent and infrequent strategic changes are deemed to be detrimental to firm performance. However, the research reveals that the strategic change‐performance relationship may alter due to the moderation of organisational learning.
Research limitations/implications
Given the conceptual nature of this paper, a review of relevant literature and a conceptual model are presented with suggestions for future empirical study. This paper also extends the strategic change‐performance research by advocating an inverted U‐shape relationship as one plausible explanation for inconsistent findings found in past literature.
Practical implications
Managers should try to understand their organisations and implement an appropriate level of strategic change in order to maximise the firm's overall performance. In addition, a significant role of organisational learning in supporting firms to manoeuvre in today's increasingly dynamic and competitive environment is highlighted to managers.
Originality/value
This paper attempts to explain: why firms might attain different levels of performance provided that they undergo various degrees of strategic change (in terms of frequency); and what factors contribute to the variations in organisational performance among firms that have undertaken the same number of strategic changes during a given period of time.
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