The role of organizational citizenship behaviour and rewards in strategy effectiveness

Abstract

In this paper we contribute to the strategy and OCB literature by empirically exploring how middle managers as strategic actors in product-market strategy making are enabled or constrained in the strategy process. We explore the role of organizationally targeted organizational citizenship behaviour (OCBO) as a conduit for strategy effectiveness. This is a departure from most OCB studies which concentrate on organizational effectiveness. We assess the mediating role of social and extrinsic rewards as organizational structural processes underlying the OCBO-strategy effectiveness relationship. Our results reveal that while OCBO has no direct influence on strategy effectiveness, participation as a form of social reward partially mediates the OCBO strategy effectiveness relationship. However, the negative mediation effect reveals that excessive participation reduces strategy effectiveness. In terms of extrinsic reward practices, process rewards partially and positively mediate the relationship. Focusing on OCBO our results contribute to the call for more nuanced studies into OCB relationships and performance and to the recent debate surrounding whether certain OCB behaviours are perceived as rewarded. We highlight that whilst OCBO is not in itself an important precondition for fostering effective strategy performance, organizational structural processes in the form of reward practices can foster beneficial OCBO which supports strategy effectiveness.