ORGANIZATIONAL CONTEXT AND THE INTERPRETATION OF STRATEGIC ISSUES: A NOTE ON CEOS’ INTERPRETATIONS OF FOREIGN INVESTMENT*

This paper explores the relationship between organizational context and the interpretation of strategic issues by examining the hypothesis that CEOs' interpretations of foreign investment in the USA are influenced by the organizational context in which they are embedded. Three aspects of organizational context - the global business experience of the firm; the firm's level of organizational inertia (as represented by firm age and size); and the resources available for responding - are examined as predictors of CEOs' perceptions of foreign investment as a threat or an opportunity. Analysis of data from 320 organizations, controlled by industry, shows that global business experience, firm size, and perceived capability are significant predictors of the perception of threat and opportunity. the discussion addresses the implications of these findings for future research on issue interpretation and organizational context.     

STRATEGIC HUMAN RESOURCE MANAGEMENT WITHIN A RESOURCE-CAPABILITY VIEW OF THE FIRM*

This paper takes a critical look at the field of strategic human resource management and in particular the debate about the strategic value of the human resource. We identify the contribution as well as the problematic nature of the situational-contingency perspective. Drawing from the strategic management literature and the concept of resource heterogeneity, we then posit a resource-capability view of the firm and argue that the mutually reinforcing interaction between the stock of knowledge, skills and expertise (resources) and the organizational routines and human resource policies and practices (capabilities) generates human resource competencies whose strategic value is realizable to the extent that they are linked with core competencies. We thus offer a reconceptualization of human resource competencies which goes beyond existing trait, behavioural and systems approaches. Finally, we identify the circumstances surrounding the generation and distribution of rents arising from the utilization of human resource competencies by drawing from transaction cost theory and industrial relations.     

TOWARDS A COMPREHENSIVE SYSTEM OF STRATEGIC CONTROL*

New strategic initiatives often take several years to execute fully and relatively few succeed. Unfortunately, classical control processes have contributed to this situation because they have been designed as feedback systems that detect problems and deviations from planned results only after they have already occurred, and because the standards to which measurements are compared are assumed to be correct or good. Recent conceptual contributors to the strategic control literature have argued for anticipatory feedforward controls, that recognize a rapidly changing and uncertain external environment. These new systems are designed to operate on a continuous basis, checking and critically evaluating assumptions, strategies, and results. This article adds to these conceptual developments by providing and explicit strategic control component to deal with low probability, high impact threatening events, namely, special alert control. In an effort to make all the latest strategic control components operationally useful, mechanisms, methods, and approaches to their efficient implementation are presented and then summarized in tabular form. An overall strategic control process diagram is provided to act as a guide for future strategic control systems. The result is a more comprehensive and workable system of strategic control.     

A PROFILE OF DOCTORAL DISSERTATIONS IN STRATEGIC MANAGEMENT: A NOTE*

A study of 88 randomly selected strategy-related dissertations was conducted to develop a statistical profile of dissertations in the strategic management field. This study also provides some empirical evidence supporting the criticism that the field is fragmented.     

DETERMINANTS OF STRATEGIC PLANNING SYSTEMS IN LARGE ORGANIZATIONS: A CONTINGENCY APPROACH*

This study investigates the relationship among four design parameters of planning systems and five different firm and environmental characteristics. The impact of this multivariate relationship on organizational effectiveness is then examined using a sample of 115 large manufacturing firms. The findings show general support for the proposition that, in order to be effective, a strategic planning system should be designed in such a way that the specific situational setting of the firm is reflected in the design. The analysis also indicates that firms adopt a more flexible planning system - captured here by two key variables, planning horizon, and frequency of plan reviews - as the level of environmental complexity increases. Implications for future research are discussed.     

GREEN STAKEHOLDERS: INDUSTRY INTERPRETATIONS AND RESPONSE*

This paper argues that industrial responses to ‘green’ pressures may fruitfully be explored using a stakeholder framework. However, the common view of an objective configuration of stakeholders is replaced with one that favours an interpretive perspective. Managers are viewed as crucial mediators of stakeholder influence; how they identify, define and construct stakeholders is an important feature of the meaning of greening and an industry's subsequent response. A qualitative study of managers in four UK industries - supermarkets, automotives, power and chemicals - is reported. the effect of a small number of stakeholders - campaigners and regulators - is examined in some detail, distinguished differentially according to their perceived legitimacy and the threat they pose to industry. Also examined is the large group of traditionally powerful stakeholders - customers, creditors and employees - who fail markedly to impact on industry's greening. the implications of the findings for pro-environmental change and stakeholder theory are discussed.     

THE SUBSTITUTABILITY OF STRATEGIC CONTROL CHOICES: AN EMPIRICAL STUDY*

In one stream of literature, organizational control has been observed to have two types - bureaucratic and cultural - and to be related to strategic adaptation. In another stream of literature, societal culture has been discussed as influencing the choice of organizational control types. This empirical study combines these two streams of literature. Drawing on Child (1981) we argue that the choice of organizational control types is a cultural choice. Within this context, the substitutability of one organizational control type for the other is examined using data from two culturally distinct sets of organizations - Japanese and American. The results of canonical correlation analysis suggest that the substitutability hypothesis is supported in only a very limited sense and that the relationship between the two control types may be better viewed as balanced. Implications of these results for strategic managers are discussed.     

ON ORGANIZATIONAL DESIGN: FROM A LINEAR PROGRAMMING POINT OF VIEW

This paper analyses the impact of different organizational structures on the coordination problem of the multilevel organization. The two basic structures analysed is the U-form and the M-form within the framework of a price-directive coordination mechanism. Issues such as vertical and horizontal decomposition, the length of the planning period, the level of aggregation, etc., are discussed. The basis for the analysis is results from decomposing of linear programming models. ¹ 1 This research was supported by a grant from Staten Samfundsvidenskabelige Forskningsråd, Denmark, and the paper has benefited from discussions with Art Kuhn and Rich Burton.
     

STRATEGIC PLANNING AND FINANCIAL PERFORMANCE: A META-ANALYTIC REVIEW*

After two decades of research, the effect of strategic planning on a firm's performance is still unclear. While some studies have found significant benefits from planning, others have found no relationship, or even small negative effects. Interpretation of these findings is confounded by the fact that many of these studies base their findings on a small number of firms. This article uses meta-analysis to aggregate the results of 29 samples on a total of 2496 organizations. Cumulation of previous studies found modest correlations between planning and nine performance measures. Extensive measurement problems suggest that these findings underestimate the true relationship between planning and performance.     

分步骤推进中小企业创业板市场建设的战略思考

推进创业板市场建设是《中共中央关于完善社会主义市场经济体制若干问题的决定》的一项重大决策。然而,“何时推出创业板”、“推出什么样的创业板”以及“如何开设创业板”等问题依然值得深入研究。借鉴国际经验,结合我国国情,本文提出:我国应当早日着手创业板市场建设的实质性工作,但在具体操作过程中又必须处理好五大关系,并按照“中小企业取向的两步走战略”分步骤地推进创业板市场建设。     

INFORMATION PROCESSING IN STRATEGIC ALLIANCE BUILDING: A MULTIPLE-CASE APPROACH*

Strategic alliance building has proliferated in many industries in recent years. This research focuses on the dynamic aspects of the alliance building process that have been neglected in previous research. the study examines how organizations process information during strategic alliance building and how the effective management of uncertainty and equivocality is linked to alliance success. Analysis of qualitative and quantitative data from a multi-case study leads to a proposed model of information processing in strategic alliance building and research propositions. the research propositions suggest that strategic alliance success is facilitated or impeded by a number of factors including the selection of information-processing mechanisms, the management of alliance building momentum, political activity, and information-processing structure. These factors collectively form information-processing environments that are linked to the success or failure of the alliance. Successful alliance building efforts seem to require adaptive information-processing environments that alter information-processing mechanisms to match information-processing needs.     

COGNITIVE TRAILS IN STRATEGIC DECISION-MAKING: LINKING THEORIES OF PERSONALITIES AND COGNITIONS*

This article attempts to reveal Jungian personality types' cognitive biases through a strategic management framework. The four personality types seem to use distinct heuristics to gather data, to generate and to evaluate alternatives. The connected heuristics appear as cognitive trails. We propose that different personality types habitually use certain cognitive trails; consequently, they can fall prey to biases that lurk in these trails. Cognitive trails may include linked input, output, and operational biases. We present the results from a pilot study to illustrate some connections between personality types and biases. We also explore some implications for future research and for management practice.     

IMPORTANT DIMENSIONS OF STRATEGIC ISSUES: SEPARATING THE WHEAT FROM THE CHAFF*

Decision-makers in organizations use dimensions implicitly or explicitly to sort strategic issues. This article compares the dimensions implied by three literatures and dimensions generated by an empirical study. While some similarities are identified, there are striking differences between what the literature assumes and what dimensions decision-makers in the NY/NJ Port Authority use to sort issues. Implications for theories of decision-making and interpretation in organizations are discussed.     

A STUDY OF ORGANIZATIONAL 'FRAMEWORK' AND 'PROCESS' MODALITIES FOR THE IMPLEMENTATION OF BUSINESS-LEVEL STRATEGIC DECISIONS*

Organization framework and process are proposed as two modalities for implementing intended business-level strategic decisions. A model is developed in which the components of these two modalities are defined and related to the implementation of low cost and differentiation strategic decisions. The implementation of 57 decisions in integrated circuits, petroleum, and health care firms are used to test the research hypotheses. The findings suggest that implementation in these firms utilized both framework and process structural elements, but that a different implementation gestalt characterized each type of strategic decision. Implications for strategy implementation are discussed.     

CHAMPIONS OF CHANGE AND STRATEGIC SHIFTS: THE ROLE OF INTERNAL AND EXTERNAL CHANGE ADVOCATES*

Change advocates who participate in the process of strategy-making can play an important role in enabling organizational adaptation. To examine the nature of this role, this article investigates the influence on strategic shifts of two such participants - new members of the top management team and management consultants. Empirical findings suggest that managers see these two types of change agents as having two different kinds of influence on strategic shifts. Specifically, the change agent role of management consultants is viewed as one that creates pressure for change by helping to shape new managerial perspectives of the environment. In contrast, the change agent role of new members of the top management team is viewed as one that counteracts inertial forces that may block the implementation of change. These results suggest that management consultants may be much more useful in stimulating changes in the ways executives think about their environment than they are in implementing radical strategic changes. To overcome institutional resistance to extreme strategic shifts, organizations may need to resort to stronger political and symbolic actions, such as promoting or hiring new top executives in key leadership roles.     

STRATEGIC MANAGEMENT AND DETERMINISM: SUSTAINING THE CONVERSATION*

This article suggests that strategy research should concern itself with continuing the conversation of the field rather than insisting upon a place for universal methodological criteria within that conversation. It attempts to sustain the dialogue begun by Bourgeois, Bowman, Jemison, Huff, and others, who recommend the pragmatic approach of methodological and theoretical pluralism as the best way forward in increasing empirical content. the article draws heavily on the philosophical writings of Dewey, Kaplan, and Rorty and the methodological essays of economists such as Boland, Caldwell, and McCloskey in an effort to persuade others in the strategy field that ‘good science is good conversation’. … once or twice she had peeped into the book her sister was reading, but it had no pictures or conversation in it, ‘and what is the use of a book,’thought Alice, ‘without pictures or conversation?’ Lewis Carroll (1865, p. 5)     

STRATEGIC PLANNING AND FINANCIAL PERFORMANCE: MORE EVIDENCE*

A recently published meta-analysis of the impact of strategic planning on financial performance omitted a major study of corporate planning practice in Fortune 500 manufacturing firms. This article briefly reviews that study in light of the results of the meta-analysis. Additional analysis examines performance and firm survival over a longer time period than in the original work. the overall conclusion is that a small but positive relationship between strategic planning and performance exists, and persists.