Navigating crisis from the backseat? How top managers can support radical change initiatives by middle managers

We advance the premise that to navigate crisis, rather than reactively cutting costs by culling middle management, top managers can benefit from enabling radical change initiatives by middle managers. Contextualizing this idea to the marketing function and the COVID-19 crisis, we ask: How can Chief Marketing Officers (CMOs) support marketing middle managers (MMMs) in initiating radical change in crisis situations? We take the position that marketing managers' distinctive functional influence on radical change is in driving product and service innovations that are new-to-the-firm. We then argue that crisis situations present an opportunity for top and middle managers to rethink assumptions about ‘who does what’ in radical change initiatives from the marketing function, focusing on the underemphasized possibility of MMMs initiating change and CMOs implementing. Building on recent findings on ‘change role reversal’, we unpack the notion that change initiatives may be most effective when middle managers initiate, while top managers implement. This unconventional change route would see CMOs taking a deliberate and supportive back seat in navigating crisis, while MMMs take the wheel in driving radical change initiatives. We identify duties and hurdles to a change role reversal— approach faced by MMMs throughout three stages of innovation-enabled radical change proposed by Burgelman (1991; variation-selection-retention) and chart corresponding roles that CMOs can play to support MMMs: advisor, judge, and guardian. Three tangible final questions addressed to CMOs guide managerial applications, while considerations outside scope are also discussed.     

高管团队与中层管理者的互动过程对战略决策质量及战略执行质量的影响研究

本文对包含248份问卷数据的预试样本进行探索性因素分析,结果表明,高管团队与中层管理 者互动过程包含信息交换与交互影响两个维度。通过对包含372份问卷数据的正式样本调查 分析,验证了高管团队与中层管理者互动过程二维度结构,分析结果还表明高管团队与中层 管理者之间的信息交换对战略决策质量产生显著的正向影响,交互影响对战略执行质量产生 显著的正向影响。在研究结论基础上,对提高战略决策质量及执行质量提出了相应建议。     

How new top managers use control systems as levers of strategic renewal

This research is a longitudinal study of 10 newly-appointed top managers; the research focuses on understanding (1) their business vision and strategy and (2) how they use formal control systems as levers of strategic change and renewal. The results reported in the paper are based on data collected over a period of approximately 18 months following the appointment of each new manager. Analysis of the data suggests that control systems are important levers used to manage both evolutionary and revolutionary change. In situations of strategic change, control systems are used by top managers to formalize beliefs, set boundaries on acceptable strategic behavior, define and measure critical performance variables, and motivate debate and discussion about strategic uncertainties. In addition to traditional measuring and monitoring functions, control systems are used by top managers to overcome organizational inertia; communicate new strategic agendas; establish implementation timetables and targets; and ensure continuing attention to new strategic initiatives.     

Performance feedback and middle managers’ divergent strategic behavior: The roles of social comparisons and organizational identification

Research Summary: What drives middle managers to search for new strategic initiatives and champion them to top management? This behavior—labeled divergent strategic behavior—spawns emergent strategies and thereby provides one of the essential ingredients of strategic renewal. We conceptualize divergent strategic behavior as a response to performance feedback. Data from 123 senior middle managers overseeing 21 multi‐country organizations (MCOs) of a Fortune 500 firm point to social performance comparisons rather than historical comparisons in driving divergent strategic behavior. Moreover, managers’ organizational identification affects whether they attend to organizational‐ or individual‐level feedback. These results contribute to research on performance aspirations and strategy process by providing a multilevel, multidimensional framework of performance aspirations in middle management driven strategic renewal. Managerial Summary: Middle managers are essential actors in strategic renewal. Their unique positions offer insights into operations alongside knowledge of strategy. In contrast to typical assessments of managerial performance with reference to a prior year, this research shows that performance comparisons relative to peers and other organizational units better motivate managers’ divergent strategic behavior. Our results also show that managers who identify with the firm are more attentive to organizational rather than individual performance discrepancies. Thus, our study unveils an important approach for organizations aiming to spark strategic renewal.     

An identity perspective of key account managers as paradoxical relationship managers

Managing business to business (B2B) customer relationships has become an issue of ecosystem orchestration rather than one of managing a dyadic exchange. A systemic perspective of managing B2B relationships thus recognizes that many more actors than the buyer and the seller are involved. This is particularly the case when it comes to the management of strategic customers. Key account (KA) managers coordinate resources and activities of an important number of varied actors. Therefore, the issue of possible tensions occurring between these numerous and different types of relationships managed by KA managers can legitimately be raised. Yet, the question of how KA managers can actually manage such situations has rarely been addressed. This study proposes to use the notion of identity to investigate this issue. Identity is defined in relation to the question of how to relate to others. Our qualitative empirical study shows that KA managers develop a specific identity built on a specific way of managing paradoxes.     

Identifying and appraising how managers install strategy

Cases were profiled to identify tactics used by strategic managers to implement strategy and to determine which tactic was the most effective in promoting adoption. Analysis revealed that four archetype tactics were used almost exclusively. An ‘interventionist’ approach had the best results but was used in only one case in five. ‘Persuasion’ and ‘participation’ were next most effective tactics, and ‘edicts’ the least effective. The implications of these findings for strategic management practice and the needs for further research are discussed.     

Strategy making as iterated processes of resource allocation

Capitalizing on the Bower-Burgelman process model of strategy making in a large, complex organization, we investigate the multilevel managerial activities that lead firms facing similar new business opportunities to respond with different strategic commitments. Our field-based data provide evidence on (I) the role of ‘corporate contexts’ that reflects top managers' crude strategic intent in shaping strategic initiatives of business-unit managers; (2) the critical influence of early business development results on increasing or decreasing middle managers' enthusiasm to the new businesses and top managers' confidence in these middle managers in a resource allocation; (3) the escalation or deescalation of a firm's strategic commitment to the new businesses as a consequence of iterations of resource allocation. We conclude that it is useful to conceptualize strategy making in a large, complex firm as an iterated process of resource allocation.     

How middle managers manage the political environment to achieve market goals: Insights from China's state‐owned enterprises

Research summary: Although the middle management literature has identified various bridging roles performed by middle managers in the market environment, it is relatively vague about whether and how they manage the political environment to achieve market‐related goals. In an inductive field study of four large state‐owned enterprises based in mainland Communist China, operational middle managers were found to take an active role in dealing with political actors to achieve market efficiency in their local environments, performing two distinct bridging strategies. Our field study suggests that middle managers are better equipped than their bosses (top executives) as well as their subordinates (frontline employees) to perform the bridging function between competing market and political imperatives in various local settings. Managerial summary: For firms that operate in diverse geographies, it is challenging for a handful of top executives to deal with numerous political actors. This burden could be shared with operational middle managers, who play a bridging role by drawing on their operational knowledge and local networks. Our research on middle managers who work under the scrutiny of political actors in China found that they bridge market and political ideology by conveying common features that seem legitimate to both. They also bridge market goals and political actors with personal affect. Compared to top executives and frontline employees, middle managers have unique advantages in performing these bridging functions. Firms can enhance their strategy execution ability by training middle managers in dealing with political actors in diverse contexts. Copyright © 2016 John Wiley & Sons, Ltd.     

Resource orchestration in practice: CEO emphasis on SHRM,commitment‐based HR systems,and firm performance

In order to be effective, managers at all levels of the firm must engage in resource management activities, and these efforts are synchronized and orchestrated by top management. Using a specific type of strategic resource, commitment‐based human resource systems, we examine the effect of CEO resource orchestration in a multi‐industry sample of 190 Korean firms. Our results demonstrate that CEO emphasis on strategic HRM is a significant antecedent to commitment‐based HR systems. Furthermore, our results also suggest that CEO emphasis on strategic HRM has its primary effects on firm performance through commitment‐based HR systems. This finding underscores the importance of middle managers in operationalizing top management's strategic emphasis, lending empirical support to a fundamental tenet of resource orchestration arguments. Copyright © 2013 John Wiley & Sons, Ltd.     

Occupational roles and expectations of research scientists and research managers in scientific research institutions†

Publicly funded research institutes in most countries have been pressed by economic and political pressures through the 1990s to become more financially independent, to be more accountable and to adopt more businesslike principles and practices. In this context the occupational roles and career options for scientists and research managers in these organisations have undergone considerable change. As the research cultures of these institutions take on a more commercial perspective, new and critical career path choices for both researchers and the organisations themselves have emerged. This article focuses on the changing occupational roles of research scientists and research managers in the Australian CSIRO (Commonwealth Scientific and Industrial Research Organisation), one of the world's largest multidisciplinary research organisations. Two critical occupational pathways are discussed: one between science and science management and another between science management and commercial management. Key points where the pathways diverge are identified and linked to broader issues of organisational culture and human resource management. The authors argue that research institutes such as the Australian CSIRO require a ‘multicultural’ management approach that horizontally integrates the industrial, scientific and commercial domains of the organisations’ research cultures.     

Understanding firms’ relative strategic emphases: An entrepreneurial orientation explanation

Top management’s choices regarding strategic emphases (e.g., value-creation versus value-appropriation) are an important component of firms’ success. While extant research has explored the effects of strategic emphasis on firm performance, few studies have examined the factors that affect top management’s strategic emphasis choices. The study addresses this gap by examining the relationship between management’s entrepreneurial orientation and its relative strategic emphasis on value-creation versus value-appropriation. In addition, it investigates the moderating roles of relative performance, compensation strategy, and capital market patience, on the above relationship. Using a multi-source dataset of 337 Standard & Poor (S&P) 500 companies from 2007-2015, we find that entrepreneurially oriented managers tend to focus more on value-creation (e.g., new product development) over value-appropriation (e.g., advertising), but this influence is contingent on, at least, three factors: (1) relative firm performance, (2) compensation strategy, and (3) capital market patience. The study provides a broad theoretical foundation that explicates key factors that influence firms’ resource allocation decisions.     

Impact of MIS/IT upon middle managers: some evidence from the NHS

The paper meets a need for more context specific empirical research in this area. Subject to medical group power, the three cases studied suggest that MIS/IT enhances the role of middle managers since it is they who are best placed to 'synthesise' information from MIS/IT for executive management.     

Does female representation in top management improve firm performance? A panel data investigation

We argue that female representation in top management brings informational and social diversity benefits to the top management team, enriches the behaviors exhibited by managers throughout the firm, and motivates women in middle management. The result should be improved managerial task performance and thus better firm performance. We test our theory using 15 years of panel data on the top management teams of the S&P 1,500 firms. We find that female representation in top management improves firm performance but only to the extent that a firm's strategy is focused on innovation, in which context the informational and social benefits of gender diversity and the behaviors associated with women in management are likely to be especially important for managerial task performance. Copyright © 2012 John Wiley & Sons, Ltd.     

Managing the planning process: A field study of the human side of planning

This paper reports the findings of an empirical field study of human behaviour in the context of planning. The investigation centres on ‘behavioural problems’ encountered by managers of strategic planning systems. Two general issues are addressed. The first concerns the frequency of occurrence of these problems among managers and their impact on the effectiveness of the planning process. The second issue pertains to whether the constellation of behavioural problems managers confront varies in accordance with the role of the manager in the planning system. Implications of the findings for practitioners and researchers are discussed.     

Can top managers be strategists?

Given the multiple calls on top excutive time and the increasingly complex and disparate makeup of most large diversified companies today, top management involvement in the strategic planning process in too often limited to little more than the basic allocation of corporate resources among previously selected options. This situation, the author suggests, is for from ideal; it is time to reassess top management's role in and generally orchestrating the diverse human elements of the planning process so as to steer it on a course between advocacy and consensus toward the best possible strategy for the corporation as a whole.     

The architecture of coopetition: Strategic intent,ambidextrous managers,and knowledge sharing

The study investigates the significance of strategic intent, manager's ambidexterity, and knowledge sharing routines for firms in their quest to pursue coopetition. We utilize the resource-based view and the dynamic capabilities theory to ground our hypotheses. We test the hypotheses using the data collected from 313 firms that engage in coopetition relationships through an online survey. The findings forward knowledge sharing and ambidextrous managers as intervening variables, in that when complemented with knowledge sharing, a firm's strategic intent could better guide the firm's managers to pursue coopetition successfully. Findings further advocate that knowledge sharing complements to enable the relationship between a firm's strategic intent and its ambidextrous managers, as well as the relationship between strategic intent and coopetition. Furthermore, results also indicate that ambidextrous managers, with a skillset of a combination of exploration and exploitation, are positively associated to coopetition. Overall, the findings make important theoretical as well as empirical contributions to the coopetition and strategic alliance literature.     

The Decision to Exploit an R&D Project: Divergent Thinking across Middle and Senior Managers

Research and development (R&D) generates projects, but the question often remains: which projects should be exploited? Building on the innovation, strategy, and managerial cognition literatures, we use a conjoint field experiment to collect data on 4032 decisions made by 126 R&D managers to test how project attributes, strategic context, and managers' characteristics influence innovation exploitation decisions. Using hierarchical linear modeling, we find that (1) experience impacts project exploitation decision policies of middle managers more than senior managers, (2) divergent thinking across middle and senior managers increases with experience, and (3) experienced middle managers diverge from experienced senior managers in their decisions to exploit opportunities by placing greater emphasis on strategic context (relative to competitors and fit within the portfolio) and lesser emphasis on uncertainty (technological and demand). These findings have implications for the strategy and innovation literature.     

Organizational perceptions of sales managers

The field sales manager is an important member of any organization that has a field sales force. Field sales managers are critical from an operations and human relations point of view [14]. It is at this position that marketing plans meet field implementation. In addition, field sales managers embody management to the salesmen and in turn represent the salesmen to top management. Because of the boundary nature of this position, it is essential to have field sales managers who work harmoniously with both organizational levels. The man-in-the-middle nature of the position makes the field sales manager susceptible to the performance expectations of two diverse groups—sales and managerial personnel.     

The impact of strategic account managers' behaviors on relational outcomes: An empirical study

This paper explores the impact of some behaviors of strategic account managers on the relational outcomes of the relationships they are in charge of. Based on a review of literature on personal selling and strategic account management, we contribute to a greater understanding of the role of specific strategic account managers' behaviors in fostering synergistic solutions, role performance and customer trust. Results of the empirical study clearly show that the use of customer orientation has a strong influence on customer trust by increasing strategic account managers' role performance and stimulating synergistic solutions. Conversely, a selling orientation negatively affects synergistic solutions, thus decreasing customer trust. Finally, team selling has a positive impact on the attainment of synergistic solutions, thereby fostering customer trust. Based on these findings, managerial and research implications are discussed.     

Is that an opportunity? An attention model of top managers' opportunity beliefs for strategic action

Research summary: Exploiting opportunities is critical to a firm's competitive advantage. Not surprisingly, there has been considerable interest in the processes by which top managers allocate attention to potential opportunities. Although such investigations have largely focused on top‐down processes for allocating attention to the environment, some studies have explored bottom‐up processes. In this article, we consider both top‐down and bottom‐up processing to develop a model by which top managers form opportunity beliefs for strategic action depending on the allocation of transient and sustained attention. Specifically, this attentional model provides insights into how a top manager's attention is allocated to identify potential opportunities from environmental change and explores how different modes of attentional engagement impact the likelihood of forming beliefs about radical and incremental opportunities requiring strategic action. Managerial summary: Managers are interested in noticing and exploiting opportunities because the exploitation of an opportunity represents an important strategic action. Noticing and exploiting opportunities depends on how and where top managers allocate their attention. Managers can focus attention based on their knowledge and experience or as a result of something in the environment capturing their attention. In this paper, we consider both knowledge‐driven and environment‐driven processes for allocating attention to form opportunity beliefs. This opportunity belief arises from a two stage process. The first stage explains how a top manager identifies environmental changes as potential opportunities. The second stage explains how the top manager forms a belief that these identified environmental changes represent a radical or incremental opportunity worthy of exploitation. Copyright © 2016 John Wiley & Sons, Ltd.