Middle Management’s Strategic Influence and Organizational Performance

This study investigated relationships between middle managers’ formal position, their strategic influence and organizational performance. Among the 259 middle managers represented in the study, managers with formal positions in boundary–spanning sub–units reported higher levels of strategic influence activity than others. At the organizational level of analysis, the study found that firm performance was associated with more uniform levels of downward strategic influence, and more varied levels of upward influence among middle management cohorts. The findings suggest that middle managers’ strategic influence arises from their ability to mediate between internal and external selection environments. In addition, positive effects on organizational performance appear to depend on: (1) whether the overall pattern of upward influence is conducive to shifts in the network centrality of individual managers; and (2) whether the pattern of downward influence is consistent with an appropriate balance between the organization’s need for control and flexibility.     

Corporate Governance,Strategy and Survival in a Declining Industry: A Study of UK Cotton Textile Companies*

ABSTRACT Building on the strategic flexibility perspective, this paper examines the influences of organizational diversity, ownership structure and board characteristics on strategic responses to industrial decline in firms from the UK textile industry. Using samples of exiting and surviving companies it shows that, in line with the predictions of the strategic flexibility framework, the surviving companies tended to have a higher level of organizational diversity. They also tended to have larger institutional ownership and more diverse boards. These factors are associated with higher investment, financial performance, and growth. The results are consistent with the resource and service roles of the corporate governance factors.     

Green Practices and Organizational Design as Sources of Strategic Flexibility and Performance

Green competences are dynamic capabilities based on practices (green practices), routines and structures that can be used to detect opportunities, make the most of them and use them to transform organizations. With this in mind, we explore the relationships between environmental management, organizational performance, and organizational processes and practices. We identify three key constructs related to green competences: (1) hybrid structures, (2) environmental best practices and (3) strategic flexibility, a key variable connecting structural design and green practices to organizational performance. We propose that the implementation of specific organizational structures characterized by the inclusion of market‐driven control practices within hierarchies (internal hybrids) could enhance firms' environmental responsiveness and deployment of green best practices. In addition, we suggest that green practices and structures are positively related to the development of strategic flexibility, driving above‐average returns in dynamic environments. To test these hypotheses, we use data from the European aviation industry. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

The Effects of Culture and Structure on Strategic Flexibility during Business Model Innovation

This study uses responses from 107 multinational firms to reveal CEO perceptions of the drivers of strategic flexibility during business model innovation. While the positive effect of creative culture is confirmed, partner reliance reduces strategic flexibility during business model innovation. Further, structural change is disaggregated into efforts that either focus managerial attention on core activities or reconfigure existing activities. CEOs perceive that structural flexibility requires structural simplification while retaining control of non‐core functions. We find that the relative magnitude of business model innovation effort moderates the effect of reconfiguration on strategic flexibility. The implications for theories of organizational design and dynamic capabilities are discussed.     

Strategic entrepreneurship and competitive advantage of established firms: evidence from the digital TV industry

Although strategic entrepreneurship in established firms is recognized as a vital source of sustainable competitive advantage, this field has no clearly developed research paradigm. This study proposes a conceptual framework to investigate dimensions of strategic entrepreneurship and its function in sustainable competitive advantage of established firms in a modern volatile environment, through the lens of the dynamic capability view. By conducting a systematic literature review of previous research documents and considering conceptual interrelationships between strategic entrepreneurship and dynamic capabilities, we propose categories that comprise dimensions of a firm’s strategic entrepreneurship: environmental sensing, opportunity seizing, strategic flexibility, entrepreneurial orientation and organizational learning. We establish a conceptual framework of strategic entrepreneurship in which entrepreneurs’ managerial capabilities of environmental sensing, opportunity seizing, strategic flexibility and entrepreneurial orientation closely interact with organizational learning, thereby facilitating sustainable performance of established firms. Following empirical studies of established firms in the digital TV manufacturing industry, the proposed conceptual framework suggests that each dimension of strategic entrepreneurship plays a critical role in competitive advantage of firms. In addition, case study results indicate that a firm’s position and evolutionary path form antecedent factors influencing entrepreneurs’ managerial capabilities and organizational learning of established firms.     

Can strategic flexibility help firms profit from product innovation?

Although it is generally acknowledged that product innovation is critical for firms to sustain their competitive advantages, innovating firms sometimes fail to obtain economic returns from product innovation. This study focuses on the moderating effect of strategic flexibility (composed of resource flexibility and coordination flexibility) on the relationship between product innovation and firm performance, in order to address an important but previously unexplored question: Can strategic flexibility help firms profit from product innovation? Our empirical test, utilizing a sample of 607 Chinese firms, reveals that the moderating effect of resource flexibility on the positive relationship between product innovation and firm performance is negative, while that of coordination flexibility is positive. Further, such moderating effects are especially likely to be profound for firms confronting a high level of competitive intensity. We conclude by discussing our contributions, the implications, and possible future extensions.     

External and internal labour flexibility in Spain: a substitute or complementary effect on firm performance?

The contingent perspective in strategic human resource management maintains that it is necessary to observe the interaction between human resource practices by encouraging external and internal labour flexibility. An issue still to be resolved is whether this fit leads to a complementary or substitute effect on firm performance. In order to contribute to this debate, we examine how the relationship between external labour flexibility and firm performance is moderated by the degree of internal labour flexibility. To do this, we use the Survey on Business Strategies of the Ministry of Industry, Tourism and Trade on a sample of 1,403 Spanish industrial firms. The results show the existence of a substitute effect between the two types of labour flexibility. Using them simultaneously does not lead to greater benefits for firms.     

Business Strategy,HRM Practices and Organizational Performance: A Study of the Indian Software Industry

ABSTRACT

Human resources and human resources management system create competitive advantage in today's global market economy that provides wider access to technology, finance and other resources. HRM research has set a new trend with its linkage process with business strategy and organizational performance to find a place for the profession and add value to the organization. This paper intends to unveil the business strategic models, HRM practices and organizational performance in Indian software companies. The study has found that there is a significant difference among HR practices in software companies in India based on Miles and Snow's strategic types, viz., prospectors, defenders, analyzers and reactors. Although reactors showed their difference from other strategic types, no significant difference was found among three proactive strategic types, viz. prospector, defender and analyzer. With regard to performance analysis, it was found that prospectors have a comparative advantage over other strategic types in almost all performance parameters. Although incentives and stock options have a greater overall impact on performance parameters, there is a lot of difference among factors that influence organizational effectiveness in three proactive strategic types.     

Organizational flexibility in Korean companies: rules and procedures on managerial discretion and employee behaviour

This paper examines organizational flexibility in Korea by concentrating on the rules and procedures on managerial and employee behaviours (safeguard and control rules), and their association with size, ownership, strategy and performance. The data reported were collected from forty-five organizations in South Korea. The results showed that flexibility in terms of low control rules (rules on employees) relates to innovation strategies, and lack of flexibility (high control rules) relates to cost-reduction strategies. The results also show that in Korea, a 'fit' between this aspect of organizational flexibility and strategy had a positive impact on organizational performance. Rules on managerial behaviour (safeguard rules) were strongly related to family or individual ownership in the Korean context. The implications of 'congruence' between organizational strategy and presence/absence of flexibility for employee behaviour are discussed.     

Human resource flexibility,organizational culture and firm performance: an investigation of multinational firms in Hong Kong

This article explores the relationships between human resource (HR) flexibility, organizational culture, and organizational performance. Drawing on previous works, we develop a conceptual model that links the constructs together. It is hypothesized that the three sub-dimensions of HR flexibility (i.e. employee skill flexibility, employee behaviour flexibility, and HR practice flexibility) affect adaptability culture, which in turn impacts HR-related and market-related outcomes. The data were collected via a questionnaire survey of HR directors/managers in multinational corporations (MNCs) in Hong Kong. The results of structural equation modelling (SEM) reveal the positive effects of employee behaviour flexibility and HR practice flexibility on adaptability culture. Employee skill flexibility, however, exerts no such effect. Further, adaptability culture is found to affect both HR-related and market-related performance in a positive manner.     

Design parameters of the strategic planning process and organizational performance—a quantitative analysis of empirical research

After 50 years of research in strategic management, the design of strategic planning processes is still on the agenda for scholarly research. Using a quantitative meta-analysis, we examine empirical studies on the relationship between organizational performance and the design parameters of the strategic planning process that can be controlled by a firm. Whereas existing literature reviews focus on the effect of strategic planning on performance, this meta-analysis also considers the role of the location and participants in the strategic planning process, the distinct properties of strategic planners and the intensity of the planning method used. The effect sizes of existing primary studies are harmonized for better comparison and aggregated for a total effect. The total effect is tested for significance and checked for homogeneity.     

How Does Executive Strategic Human Resource Management Link to Organizational Ambidexterity? An Empirical Examination of Manufacturing Firms in China

Despite a plethora of studies that demonstrate the positive impact of strategic human resource management on firm performance, existing knowledge of the processes through which such gains can be achieved remains limited. This study aims to extend our knowledge by investigating the mechanism through which a teamwork‐oriented executive strategic human resource management system impacts organizational ambidexterity. Specifically, by integrating the resource‐based view and information‐processing theory, we examine the mediating role of top management team effectiveness and the moderating role of knowledge–sharing intensity from middle managers to top management teams. Drawing on a multiple‐source and multiple‐respondent survey from 144 manufacturing firms in China, we show that top management team effectiveness partially mediates the effect of the executive strategic human resource management system on organizational ambidexterity. Moreover, knowledge‐sharing intensity from middle managers to top management teams strengthens the effect of the executive strategic human resource management system on organizational ambidexterity. © 2016 Wiley Periodicals, Inc.     

Does alignment matter? The performance implications of HR roles connected to organizational strategy

For the HR function to have a positive impact on performance and thus strategically add value to the organization, it has been suggested to redefine its traditional operational role. However, to gain a deeper understanding of the relationship between these HR roles and performance, their alignment with the organizational strategy should not be ignored. In this paper, we therefore focus not only on whether the operational and strategic HR roles are linked to performance, but also on the extent to which their alignment with the applied organizational strategy actually matters for performance. We carried out a survey study among 336 respondents either holding an HR function or being responsible for HR-related tasks in various organizations. We found a positive effect of the strategic role on performance, and also how it might substitute a lack of innovation strategy. Further, we found an alignment effect between a cost strategy and the operational HR role in relation to organizational performance. We discuss these findings based on the literature and provide some practical recommendations for further developing the role of HR.     

Alignment of strategic priorities and performance: an integration of operations and strategic management perspectives

In theory, strategic priorities at the functional level align with and support business level strategies. Alignment of priorities is presumed to contribute to enhanced organizational performance, just as misalignment is expected to undermine performance. This study further develops and tests these theoretical conventions by examining the perceptions of general managers and manufacturing managers regarding manufacturing priorities of their business units. Based on a sample of matched pairs of manufacturing managers and general managers from 98 manufacturing plants, the hypotheses regarding the alignment–performance relationship are tested. Specifically, we tested whether the performance of the manufacturing unit is enhanced when general managers and manufacturing managers agree on strategic priorities. Furthermore, the influence of organizational factors on the relationship between alignment and performance of the manufacturing unit is studied. Results support our hypotheses that certain organizational variables moderate the relationship between alignment of priorities and manufacturing performance.     

Systems for Sustainable Organizations: Emergent Strategies,Interactive Controls and Semi-formal Information

New-form organizations are likely to organize more explicitly around processes than traditional-form organizations that emphasize functional hierarchy. Developing process-based strategic responses quickly using diffuse sets of resources is likely to play an increasingly important role in sustaining new organizational forms. Three ideas introduce alternative perspectives on strategy formulation, management control and information systems design that may be useful in understanding organizational performance in this area. They focus on: (1) emergent strategies, (2) interactive management controls, and (3) semi-formal systems. In combination these three perspectives describe relationships between strategy, organizational design and systems support that suggest mechanisms for improving the sustainability of new organizational forms. To some degree distributed organizational structures such as networked organizations and quasi-organizational forms such as alliances, partnerships and joint ventures represent attempts to solve a paradox of competitive agility. This paradox suggests that in the context of rapidly changing, increasingly global markets, organizations need to be flexible (so they can respond quickly to competitive threats) yet remain stable (so they can learn and grow based on their strengths). If this is the case, what systems and tools are available that encourage a productive balance between flexibility and stability? This paper uses the experience of regional management teams at a large consumer goods company to suggest how interactive controls and semi-formal information systems combine to increase the agility of a distributed organization that can employ emergent strategies. Evidence illustrates some of the mechanisms by which (a) faster response times deliver organizational flexibility while (b) semi-formal analytics add the stability of knowledge and guidance shared across organizational sites. Examples discuss the use of information within management teams, discussion behaviour within management meetings, and organizational performance in response to crisis events. In this context the paper analyses the characteristics of new-form systems that could be used to sustain new-form organizations While the development of process-oriented semi-formal systems is just beginning, the potential for linking such technology with newly developed approaches to management control appears to have important implications for the practice and performance of management in new-form organizations. In particular, interactive controls and semi-formal information appear to offer leverage as mechanisms for organizational adjustment during times when organizations must exploit emergent strategies     

A conceptual framework for leveraging team composition decisions to build human capital

Twenty-first century organizations often rely on teams to enact their strategy and to enhance their flexibility in interacting with their external environment over time. Team composition, or the configuration of team member attributes, can influence team effectiveness and is an important consideration in the management of teams. To date, however, there is limited guidance on how seemingly smaller team composition decisions can contribute to organizational effectiveness and competitive advantage. We draw on strategic human resource management (HRM), HRM, and industrial and organizational psychology literatures to develop a conceptual framework for strategic team composition decisions. We describe how organizations use teams to enact their strategy (i.e., fit), and use adaptive teams and networks of teams to achieve fit in a dynamic environment (i.e., flexibility). Using the concepts of fit and flexibility, we develop four guiding principles for strategic team composition decisions.     

Strategic HRM in building micro-foundations of organizational knowledge-based performance

Strategic HRM research has a strong potential to further our understanding of how organizational knowledge processes influence performance at various analytical levels. Drawing on ability–motivation–opportunity research and linking it to knowledge sharing behaviors, we discuss the micro-foundations in the link between strategic HRM practices and knowledge-based organizational performance. We thus describe a research agenda for future micro-foundational research that links strategic HRM and knowledge-based performance.     

Building manufacturing flexibility with strategic suppliers and contingent effect of product dynamism on customer satisfaction

A critical capability sought by an increasing number of firms is manufacturing flexibility, because it allows to effectively respond to dynamic markets. Grounded upon a supply chain perspective, this paper aims to assess antecedents of manufacturing flexibility that stem from the upstream relationships with strategic suppliers. Additionally, it is one of the first to analyze the contingent effect of product dynamism on the impact of manufacturing flexibility on downstream customer satisfaction. We apply structural equation modeling to a sample of 155 companies in order to analyze our hypotheses. Results strongly indicate that buyer-supplier collaboration facilitates inter-organizational learning that in turn allows organizations to develop manufacturing flexibility and increase customer satisfaction. Approaching manufacturing flexibility from a broader supply chain view thus pays off. Moreover, we apply multi-group confirmatory factor analysis to explore the contingent effect of product dynamism on the relationship between manufacturing flexibility and customer satisfaction. Results suggest a stronger impact of manufacturing flexibility on performance in the context of higher product dynamism in companies’ customer markets, confirming the importance of a contingency view to flexibility.     

组织记忆与企业家战略领导能力关系的实证研究

企业家战略领导能力是带领企业持续健康发展的重要因素之一,组织记忆是战略领导能力构建的重要源泉。文献梳理建立了组织记忆与企业家战略领导能力的理论模型与假设,实证研究表明:组织记忆对企业家战略领导能力有显著正向影响;组织记忆内容对提升企业家战略决策能力和战略控制能力的影响强于组织记忆管理水平,而企业家战略思维能力和战略实施能力的提升则更多受到组织记忆管理水平的影响。     

战略联盟的控制方式和组织能力对联盟合作绩效的影响研究

在战略联盟背景下,研究了联盟控制方式对联盟成员企业的组织能力以及联盟合作绩效的影响作用,形成了三个主效应假设,并构建了概念模型。理论研究结论指出,契约控制与企业组织能力之间为倒U型关系;关系控制与企业动态能力之间为正相关关系,而与企业运作能力之间为负相关关系;企业动态能力与联盟合作绩效之间为正相关关系,而运作能力与联盟合作绩效为倒U型关系。研究结论弥补了现有联盟控制方式研究的不足,对企业开展联盟合作实践提供了理论依据和现实指导意义。