Carlos F. Gomes, Mohammad Najjar and Mahmoud M. Yasin
As service organizations move toward the open system strategic customer orientation, they need to ensure consistency among competitive methods, performance measures and strategies…
Abstract
Purpose
As service organizations move toward the open system strategic customer orientation, they need to ensure consistency among competitive methods, performance measures and strategies utilized. This paper aims to examine the relationships among these important facets of today’s service organizations. The study at hand examines the relationship among competitive methods, implicit strategy and performance measures used by Portuguese service organizations.
Design/methodology/approach
This research uses a survey-based methodology. Factor analysis, cluster analysis and regression analysis procedures are used to analyze the collected data from Portuguese service organizations.
Findings
Based on the results of this study, it appears that some of the studied service organizations are steadily moving toward the open system mode of strategy, competitive methods and performance measurement. However, the majority of the service organizations examined appeared to be in a state of strategic confusion, as they appear to lack the consistency among competitive methods, performance measures and desired strategic orientations.
Research limitations/implications
The sample used in this study is specific in nature, as it includes only Portuguese service organizations. Therefore, the results of this study should be interpreted with caution. Future research in other cultural service settings is recommended. Such research should emphasize the exploration of theoretical frameworks, which tend to practically integrate competitive methods, performance measures and strategic orientation.
Practical implications
This study has direct practical implications for service managers, as they attempt to integrate their organizational systems. As such, the research in this study paves the way toward the practical integration and consistency among competitive methods, performance measures and strategic orientations needed to enhance the customer orientation. In this context, such integration and consistency are essential to enhance the strategic competitiveness of today’s service organizations operating in a dynamic marketplace.
Originality/value
This research combines bodies of knowledge dealing with competitive methods, performance measures and their impact on strategic orientations. The conceptual framework offered in this research attempts to facilitate the understanding for consistent practice pertaining to the competitiveness of the open system service organization in a dynamic environment. Such consistency is essential to the competitiveness of the organization in a dynamic environment.
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Jamil Anwar and SAF Hasnu
Firms face the paradox of adapting change and remaining stable to control uncertainty simultaneously to maintain their competitive position because both aspects are essential for…
Abstract
Purpose
Firms face the paradox of adapting change and remaining stable to control uncertainty simultaneously to maintain their competitive position because both aspects are essential for the firm’s effectiveness. This has raised a debate in the contemporary literature that whether firms should remain consistent or adapt flexibility in their strategic choice to produce better performance? The supporters of both the arguments provide substantial evidence in their favor. The purpose of this paper is to investigate the strategy-performance relationship in this context along with contingent effect of firm size and industry.
Design/methodology/approach
Empirical analysis using seven years financial data of 307 joint stock firms from 12 industries is done by applying Miles and Snow strategic typology. Scoring method is used to classify the strategic orientation of the firms. Univariate and multivariate regression models are applied to investigate the influence of strategy, firm size, and industry on firm performance both individually and collectively.
Findings
The results show that most of the firms in Pakistan are consistent in their strategic stance (43 percent) followed by flexible (40 percent) and reactors (17 percent). The mean differences in the performance of consistent, flexible, and reactor strategies show that both consistent and flexible strategies performed equally well and outperformed the reactors. However, there is significant variation in the performance of the strategic types due to the variation in firm size and industries whereas the contingent effect of firm size, industry, and strategy is statistically insignificant.
Originality/value
The methodology used for the identification of transition of strategic stance of the firms over time to know the consistent, flexible, and reacting behavior of the firms from archived data is the important contribution to the literature. The methodology can be replicated in longitudinal studies for identification of strategic groups in typological research.
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Jose Celso Contador, Walter Cardoso Satyro, Jose Luiz Contador and Mauro de Mesquita Spinola
The purpose of this paper is to identify, characterize, classify and conceptualize different perspectives on strategic alignment still in use, propose a taxonomy and definitions…
Abstract
Purpose
The purpose of this paper is to identify, characterize, classify and conceptualize different perspectives on strategic alignment still in use, propose a taxonomy and definitions that allow understanding the various coexisting concepts, as well as investigate the implications of strategic alignment for data-driven sustainable performance of firms and supply chains.
Design/methodology/approach
Bibliographic review was used.
Findings
The taxonomy proposes two classes of strategic alignment: (1) Align – more rigorous types of alignment: structure alignment, strategic congruence and strategy alignment; (2) Fit – less rigorous types of alignment: contingency strategic adjustment, strategic coalignment and strategic consistency. Companies are accumulating large amounts of data, which relevance varies widely. The strategic alignment can define criteria to select only the data that have strategic value, which restricts the amount of data to be analyzed. Each of the six types of strategic alignment is appropriate for a given situation in companies and/or supply chains.
Research limitations/implications
The limitations stem from the exclusive use of the taxonomy of strategic alignment, without considering the most diverse perspectives of strategy.
Practical implications
Decision makers will be able to identify more objectively which classes of data should be explored in each situation.
Social implications
Theoretical implications – The taxonomy proposal and the definition of each of the strategic alignment perspectives solve generalized misunderstandings resulting from the lack of a clear delimitation between the perspectives and the conceptual divergence between authors, who use them as equivalent or synonymous.
Originality/value
From 1961 to 2019, no paper was found proposing taxonomy, typology, systematization, ranking, distribution or classification of strategic alignment. The strategic alignment can define criteria to select, within the large amount of data accumulated by the company, only those that have strategic value, what restricts the quantity of data to be analyzed and facilitates the decision of the leaders.
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The purpose of this paper is to examine the synergy between strategic resources and operational tool orchestration for organization development.
Abstract
Purpose
The purpose of this paper is to examine the synergy between strategic resources and operational tool orchestration for organization development.
Design/methodology/approach
The article has a progressive empirical multiple-level research design. With a cross-sectional analysis, this investigation confirms the organization development can be related to strategic resources and a complex interplay of factors. Along with this method, our study enables rich empirical conceptualization and helps with extending theory.
Findings
The results indicate that in operational tool orchestration, the higher the synergy in the factors of production, the greater the strategic development, competitive positioning and sustainability of the organization. In sum, according to these results, the synergy between operational tool orchestration and the factors of productivity could have a significant effect on organizational objectives achievement.
Originality/value
This research provides researchers with an empirical base stating that organization development can be related to strategic resources in an operational context. The article also provides a new contribution to the existing literature in management development by confirming the significance of vital resources and functional tool orchestration in organization optimization and will be referenced by other authors in the future.
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Firms report varied levels of success in relation to using alliances to aid in new product development (NPD). This study aims to investigate internal processes that might…
Abstract
Purpose
Firms report varied levels of success in relation to using alliances to aid in new product development (NPD). This study aims to investigate internal processes that might influence the experience of alliance success. Specifically, this study investigates the role of mediating and moderating mechanisms underlying the alliance orientation (AO)–new product success relationship, while also investigating the impact of the level and consistency of AO. The primary goal is to understand the importance of a firm’s maintaining a consistent focus upon alliance scanning, coordination and learning.
Design/methodology/approach
A survey was conducted to collect data from 141 Taiwanese electronics companies. The proposed model and hypotheses were tested using path analysis in analysis of moment structures.
Findings
AO improves the success of new products indirectly through the enhancement of product program innovativeness and NPD decision-making flexibility. The positive effect of AO on product program innovativeness and NPD decision-making flexibility is heightened when a firm consistently carries out a series of alliance management activities, including alliance scanning, coordination and learning. Market turbulence and the intensity of competition differentially affect the association between product program innovativeness and NPD decision-making flexibility and new product success.
Research limitations/implications
The measures were self-reported and may result in the threat of common method bias. While this study focused upon protecting against and assessing this bias, collecting data from multiple sources would have helped to eliminate the bias. Further, the sample consisted of Taiwanese electronics firms. This makes it difficult to generalize this study’s findings to other industrial contexts.
Practical implications
While AO may be viewed as a dynamic capability, product program innovativeness and NPD decision-making flexibility represent competitive advantage in NPD program and process, respectively. Managers should not focus only on competitive advantage in NPD while overlooking the development of dynamic capabilities, as this study’s results demonstrate that both elements must work in tandem. AO is relevant at higher levels of the organizational hierarchy, while product program innovativeness and decision-making flexibility are operational, demanding cross-functional coordination and involvement within a firm. Senior executives ought to not only confirm the appropriate provision of their resources to activities and actions associated with product program innovativeness and decision-making flexibility in NPD but also continually monitor and assess whether the inputs of AO lead to desirable competitive advantage in the context of NPD.
Originality/value
This study sheds light on the underlying mechanism through which AO improves new product success. This research proposes two different aspects of AO, level and consistency, and empirically identifies their interactive effect in the context of NPD. The findings offer specific guidelines for the assessment and implementation of AO to improve new product success. Consistency, especially, has not been investigated in relation to alliance-generated new product success.
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Philippe 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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Raffaella Cagliano and Gianluca Spina
The study of internal and external consistency of manufacturing choices is a central theme in the literature of manufacturing strategy. However, most empirical studies lack…
Abstract
The study of internal and external consistency of manufacturing choices is a central theme in the literature of manufacturing strategy. However, most empirical studies lack dynamic perspective in facing this problem. This paper explores on an empirical, longitudinal basis the role of strategic priorities and past experience in driving the selection of manufacturing improvement programmes. A completely aligned selection is expected when the choice of the improvement programme is coherent with both the change in manufacturing priorities and the past experience of the programme implementation. Partially aligned and misaligned choices derive from the coherence with only one or none of the two driving factors. Different patterns of selection have been detected that depend both on the programme and on company‐specific factors. Starting from the level of strategic alignment of company’s choices, guidelines are provided in order to manage effectively the process of manufacturing strategy formulation.
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Avinash Malshe and Michael T. Krush
The purpose of this study is to understand one portion of the sales ecological system. This paper focuses on the mesolevel or intra-organizational system that includes the sales…
Abstract
Purpose
The purpose of this study is to understand one portion of the sales ecological system. This paper focuses on the mesolevel or intra-organizational system that includes the sales and marketing functions. This paper examines distinct tensions at three levels of the firm’s hierarchy and the mechanisms used to manage the tensions.
Design/methodology/approach
The authors use a qualitative data collection. A discovery-oriented process is used to understand the interconnections that exist among marketing-sales dyads at three organizational levels across several firms.
Findings
This paper uncovers distinct tensions and defenses exhibited by managers at each hierarchical level and this paper presents mechanisms that can are used to reduce the tensions.
Research limitations/implications
The multi-level perspective demonstrates the value of examining the intra-organizational aspect of the sales ecosystem. This paper uses a qualitative approach to highlight that sales-marketing tensions are unique to each of the hierarchical levels. This paper demonstrates that the tensions are a function of the unique roles each sales and marketing executive has within the organization.
Practical implications
To make the sales and marketing interface more effective, managers need to view tensions across the sales-marketing interface as complementary versus opposing forces. Managers must balance these tensions, rather than fight them and/or select one of the alternatives over the other. This paper suggests that paradoxical thinking may be a valued skillset for managers at each level of the organization.
Originality/value
The study uses a unique qualitative data set that examines the sales-marketing interface across three levels of an organizational hierarchy. Through this approach, this paper delineates specific tensions between marketing and sales within each level of the firm. This paper also describes mechanisms to manage the tensions common within the sales-marketing interface.
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Seth Jonsson and Claes Gunnarsson
The purpose of the paper is to explore how the internet introduces opportunities for customer value and effectiveness when developing integrative logistics operations between…
Abstract
Purpose
The purpose of the paper is to explore how the internet introduces opportunities for customer value and effectiveness when developing integrative logistics operations between alliance partners in a supply chain link.
Design/methodology/approach
The study is based on the expressed interest from the researched companies how to take advantage of the internet in building competitive business processes in the supply chain. The quest for external customer‐value creation becomes a critical managerial task in strengthening the strategic position of the supply chain. The study seeks to integrate the use of theories of marketing, strategic sourcing, core competencies, and transaction costs, in a supply chain perspective.
Findings
Applying the internet with solely a focus on cost reduction could lead to high supply chain effectiveness without realizing potential customer value‐perception opportunities. Also, assuring strategic consistency when leaning on cooperation is a critical supply management subject. Finally, the internet is a driving force in managing alliances.
Research limitations/implications
The framework of the value‐delivery system and the concept of value shortfalls, as theoretical understanding and managerial implications, deserve to be taken into certain consideration in future studies of supply chain performance.
Practical implications
The managerial implications point out three potential routes in the internet use: as a strategic collaborative posture to compete with superior external customer‐value delivery; in increasing supply chain efficiency and gradually shifting attention toward customer‐perceived value; in extracting economic value through continual refinements of current logistics operations.
Originality/value
A systemic value‐delivery view where the value‐exchange process is illustrated with delivery performance, actual achievement, and value shortfall.
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Christian Hoffmann and Christian Fieseler
In this paper, the authors aim to identify a range of non‐financial factors that play a role in the formation of a company's image, and ultimately its valuation, on capital…
Abstract
Purpose
In this paper, the authors aim to identify a range of non‐financial factors that play a role in the formation of a company's image, and ultimately its valuation, on capital markets. By identifying and highlighting their relative importance to the perceptions of equity analysts, the authors seek to show that investor relations are best understood as a strategic communication function rather than a mere purveyor of pure financials.
Design/methodology/approach
The findings are based on a two‐tiered approach, relying on qualitative interview data collected among 42 equity analysts and a subsequent exploratory factor analysis performed on data obtained from a survey among 134 buy‐ and sell‐side analysts.
Findings
The authors argue that equity analysts consider the following eight categories of non‐financial information when forming an impression of a company: the stakeholder relations of an organization, its corporate governance, its corporate social responsibility, its reputation and brand, the quality of its management, and its strategic consistency. One of the most important factors, however, is the quality of a company's communication, which underscores the strategic role that the investor relations function should play in fostering positive capital market relations.
Research limitations/implications
Being explorative in nature, the categories and scales proposed need further validation. Furthermore, in future research, it would be worthwhile to explore not only the role of non‐financials in image formation but also the interplay between financials and non‐financials in image formation.
Practical implications
Investor relations professionals should consider the factors presented in this study in their work in order to ensure that they cater to the actual information needs of capital market participants. The consideration of non‐financial factors enhances the quality of financial communications. It also enriches the understanding of the strategic communication tasks of the investor relations department.
Originality/value
This paper describes an empirical analysis of the management of corporate relationships with financial audiences, a stakeholder group increasingly focused on by communications research. It represents a contribution to the further establishment of investor relations as a strategic communication function.