Organizational politics and the strategic process

In this paper the relationship between organizational politics (OP), and company strategy and performance was explored. Data were collected from 55 manufacturing firms. Controlling for company assets and industry type, OP intensity was associated with various stages of the strategic process. In addition, it was negatively associated with overall company performance. These results were corroborated by canonical analysis. Another important finding was that the stage of company evolution moderates the OP-strategic process relationship. Finally, future research directions and implications for managerial behavior and ethics have been clarified.Dr. Shaker A. Zahra is Associate Professor of Strategic Management, Department of Management, George Mason University, Fairfax, Virginia 22030. His research centers on the role of board of directors in the strategic process, determinants of innovation in large corporations, and ethical issues associated with strategic choices.     

Strategic hybrid orientation between market orientation and brand orientation: guiding principles

Strategic orientations underpin the firm’s managerial decisions and influence its performance. Firms can combine multiple strategic orientations to achieve superior performance. Market orientation and brand orientation are well-developed, separate, strategic approaches. A 2013 study conceptually proposed a strategic hybrid orientation comprising two types: (a) market and brand orientation and (b) brand and market orientation. The current study is qualitative, using small-to-medium enterprises to investigate strategic hybrid orientations. Through propositions, the paper explains the theory and processes underlying the two hybrid orientation types. The propositions form the guiding principles for the strategic management of the hybrid orientation. The implications for managerial practice show that quite different capabilities apply to the execution of each strategic hybrid type.     

Organizational Culture,Innovativeness, Market Orientation and Firm Performance in South Africa: An Interdisciplinary Perspective

ABSTRACT

For a sample of South African firms, this paper analyzes the relationships of firm performance and a set of organizational measures which includes organizational culture and climate, market orientation and innovativeness. These organizational measures are drawn from three different disciplines–organizational behavior, strategy and economics. The replicative study is framed in an extended model of competing organizational values which have been used in 13 countries including three transition economies (Vietnam, China and Russia). The work has also been done under a variety of conditions–for example, the US in a period of study growth, Thailand during the Asian Crisis and Hong Kong after the handover to China. Comparisons are made between South African results and those of firms from a group of five industrial countries. Market Orientation is the most important explainer of performance of the South African firms, and Innovativeness is also important. Specific elements of Organizational Culture are apparently less important in South Africa than elsewhere.     

A Neural Network Classification of Export Success in Japanese Service Firms

Abstract

This study examines the export performance of 350 randomly selected Japanese engineering service firms. Inquiry is made regarding environmental, organizational, managerial, strategic, and functional determinants of these exporting firms. Two primary questions are addressed. Can performance category membership of engineering service exporters be predicted? Second and foremost, which determinants are the most effective in differentiating between the export performance categories? An Artificial Neural Network is selected as the statistical method because of the different perspective it provides for a highly non-linear function having many variables, offering results that consistently prove to numerically approximate such functions much easier than conventional methods, together with the ability to dependably and accurately predict membership classification while providing weighted analyses of input variables. Findings suggest that each group's membership can be consistently and accurately predicted and further identify which determinants dominantly impact category membership as supported by differences in the feature extraction phase of the neural network approach.     

Ethical Rationality: A Strategic Approach to Organizational Crisis

In this paper, we present an ethical and strategic approach to managing organizational crises. The proposed crisis management model (1) offers a new approach to guide an organization’s strategic and ethical response to crisis, and (2) provides a two-by-two framework for classifying organizational crises. The ethically rational approach to crisis draws upon strategic rationality, crisis, and ethics literature to understand and address organizational crises. Recent examples of corporate crises are employed to illustrate the theoretical claims advanced. Finally, the paper provides guidelines for a morally optimal outcome for the organization and its stakeholders. Peter Snyder is a Ph.D. student in Organizations and Strategic Management at the University of Wisconsin-Milwaukee. His research interests include strategy making and corporate governance. Molly Hall is an attorney who practices international and environmental law in Milwaukee, Wisconsin. She teaches adjunct courses in business ethics, environmental policy, and the European Union. Joline Robertson is a Ph.D. candidate in Organizations and Strategic Management at the University of Wisconsin-Milwaukee. Her research interests include international business. Tomasz Jasinski is a Ph.D. student in Organizations and Strategic Management at the University of Wisconsin-Milwaukee. His research interests include strategic alliances. Janice S. Miller received her Ph.D. from Arizona State Univerity in Business Administration with a concentration in Human Resource management. She has been on the faculty at the University of Wisconsin-Milwaukee UWM since 1996 and has served as the Associate Dean for Academic Programs in the School of Business Administration since 2002. Dr. Miller’s primary research interests include performance management, compensation and ethical issues in organizations.     

Effect of market orientation,network capability and entrepreneurial orientation on international performance of small and medium enterprises (SMEs)

This study contributes to literature on the internationalization of SMEs by analysing the influence of International Market Orientation, Network Capability, and International Entrepreneurial Orientation on the International Performance of this kind of businesses. Particularly, both the direct effects of explanatory variables of International Performance and interdependence relations between them are analysed. Results obtained from a sample of 161 Mexican SMEs using SEM-PLS analysis show that the International Performance of this kind of businesses is favourably influenced by their Network Capability and International Entrepreneurial Orientation, but not by their International Market Orientation. Similarly, it is verified that interdependence relations exist among the explanatory variables of International Performance of SMEs, where positive impact of International Entrepreneurial Orientation is observed on Network Capability and the International Market Orientation of SMEs.     

Downsizing and Stakeholder Orientation Among the Fortune 500: Does Family Ownership Matter?

While downsizing has been widely studied, its connection to firm ownership status and the reasons behind it are missing from extant research. We explore the relationship between downsizing and family ownership status among Fortune 500 firms. We␣propose that family firms downsize less than non-family firms, irrespective of performance, because their relationship with employees is based on normative commitments rather than financial performance alone. We suggest that their actions are related to employee- and community-friendly policies. We find that family businesses do downsize less irrespective of financial performance considerations. However, their actions are not related to their employee- or community-friendly practices. The results raise issues related to the motivations of large multinationals to␣downsize and the drivers of their stakeholder management practices. Eleni T. Stavrou is an Assistant Professor of Management and Organization at the Department of Public and Business Administration of the University of Cyprus. She received her Ph.D. in Management and Organization from George Washington University, USA. Her work has been published in various academic journals including Entrepreneurship Theory and Practice, Journal of Applied Social Psychology, Journal of Organizational Behavior, Journal of Small Business Management, International Small Business Journal and Journal of European Industrial Training. Her research interests are: flexibility at work, strategic human resource management, succession planning, group and family dynamics, intergenerational transitions, and organizational culture. George I. Kassinis is an Assistant Professor of Management at the Department of Public and Business Administration of the University of Cyprus. He received his Ph.D. from Princeton University, USA. His work has been published in various academic journals including the Academy of Management Journal, Production and Operations Management and Strategic Management Journal. His research focuses on stakeholders, organizations and the natural environment, environmental management issues in services, social networks, and industrial ecology. He serves on the editorial board of Organisation Studies. Alexis Filotheou holds an MSc in Finance from the University of Cyprus and is currently employed in the private sector in Cyprus.     

Strategic planning and performance: Extending the debate

This article extends the debate regarding the relationship between strategic planning and performance. It addresses criticism of previous empirical studies that have largely investigated direct and bi-variate relationships, producing equivocal results. The current study investigates the mediating effects of four types of flexibility on the strategic planning and performance relationship. Flexibility is defined as the extent to which new and alternative decisions are generated and considered in strategic planning, allowing for positive organizational change and adaptation to environmental turbulence. Through investigating simultaneous equations in a structural equation model, we find that two types of flexibility mediate the relationship between strategic planning and financial performance, while the other two types mediate the relationship between strategic planning and non-financial performance. The results are new empirical insights that have not been previously reported.     

The Chief Executive Officer and corporate social performance: An interdisciplinary examination

This paper attempts to cross the disciplinary boundaries of strategic management and social issues management to demonstrate the relationship between managerial characteristics and corporate social performance (CSP). Drawing on studies in strategic leadership research we develop and test hypotheses about linkages between top management attributes and different levels of CSP. Our results add credence to the argument that organizations are a reflection of their top managers, and encourage further systematic research of the influence of key executives in developing and implementing socially responsible policies and programs.Dr Anisya S. Thomas is an Assistant Professor in the Department of Management and International Business at Florida International University. She received her Ph.D in Strategic Management. She has published in a variety of journals includingStrategic Management Journal, the Journal of Management and theJournal of Strategic Change. Dr Thomas's research interests include social responsibility, strategic leadership and international management.Dr Roy Simerly is an Assistant Professor in the Department of Management at East Carolina University. His research focuses on network organizations and corporate social responsibility. Dr. Simerly is an active member of the Academy of Management and has published in journals such as theJournal of Business Strategy.     

Application of extended theory of planned behavior model to ecological behavior intentions in the food and beverage service industry

ABSTRACT

This study examined the relationships between environmental concern, the three main constructs of theory of planned behavior (TPB), two extended constructs (psychological ownership of the company and sense of responsibility) and employee behavioral intention to implement environmental measures. A questionnaire designed for restaurant employees was used to measure identified indicators. Structural equation modeling was chosen for hypothesis testing. Our results indicated that the three TPB constructs and one psychological trait (sense of responsibility) mediated the relationship between environmental concern and behavioral intention. Employee psychological ownership of a company was verified to exert a positive effect on employee behavioral intention. However, the findings cannot be applied to F&B settings in general since the study was restricted to Chinese restaurants identified.     

Ethical Character and Virtue of Organizations: An Empirical Assessment and Strategic Implications

Virtue ethics has often been regarded as complementary or laissez-faire ethics in solving business problems. This paper seeks conceptual and methodological improvements by developing a virtue character scale that will enable assessment of the link between organizational level virtue and organizational performance, financial or non-financial. Based upon three theoretical assumptions, multiple studies were conducted; the content analysis of 158 Fortune Global 500 firms ethical values and a survey of 2548 customers and employees. Six dimensions of organizational virtue (Integrity, Empathy, Warmth, Courage, Conscientiousness and Zeal) are identified through confirmatory factor analysis, and validated against satisfaction measure. Strategic implications of virtue characters are discussed.     

Determinants of organizational performance: some implications for top executive leadership in Korean firms

ABSTRACT

Leadership, although commonly assumed to be greatly significant, is not typically studied in terms of structural characteristics accounted for in organizational performance. The effect of top executive leadership is explored here as a key factor that reflects organizational characteristics by offering a new framework and presenting an empirical test of Korean business firms. This research can be possibly made by focusing on the size of the leadership which explicates the difference between structural, resource and contextual variables in organizations. The multivariate regression analysis shows that firm size, leadership, debt and export significantly affect organizational performance, as measured by net income. The mechanism of Korean business firms needs to readjust to the new environment for organizational performance.     

The Impact of Human Resource Management on Environmental Performance: An Employee-Level Study

This field study investigated the relationship between strategic human resource management, internal environmental concern, organizational citizenship behavior for the environment, and environmental performance. The originality of the present research was to link human resource management and environmental management in the Chinese context. Data consisted of 151 matched questionnaires from top management team members, chief executive officers, and frontline workers. The main results indicate that organizational citizenship behavior for the environment fully mediates the relationship between strategic human resource management and environmental performance, and that internal environmental concern moderates the effect of strategic human resource management on organizational citizenship behavior for the environment.     

Tradeoffs in Supplier Attribute Ratings in Supplier Selection across Strategic versus Non-Strategic Purchases

ABSTRACT

Purpose: This research identifies a customer perspective that is often ignored, neglected, or undervalued in B-to-B sales – the nature of the product itself. The pivot point is whether the product/service desired is strategic (critical to the company’s mission) or non-strategic (not critical to the company’s mission).

Methodology/Approach: A conjoint analysis was conducted for both types of purchases (strategic and non-strategic), assessing the tradeoffs and espoused preferences of four key attributes involving both the supplier and the product across three performance levels – (1) stability of the supplier, (2) reliability, (3) competitive pricing and (4) product quality.

Findings: The results indicate that B-to-B customers do make tradeoffs between suppliers based on stability, reliability, pricing and product quality. The direction of the tradeoffs depends on whether the purchase is a strategic or non-strategic acquisition. The results suggest that suppliers would benefit from understanding the relationship of their products and services to the B-to-B customer’s mission when the supplier is deciding how to improve performance.

Research implications: Too often there is a disconnect between B-to-B salespeople and their customers resulting in suppliers failing to reach performance goals. The research focuses on the importance of B-to-B salespeople uncovering whether or not the customer considers the nature of the product being considered as strategic or non-strategic to their business. The research helps to explain some of the mixed findings in the supplier selection literature.

Practical implications: The research points to the fact that customers analyze and make decisions differently depending on the type of product. Additionally, the research highlights the importance to customers of understanding the potential legal and financial risk of suppliers. This is important in that traditionally suppliers tend to focus on product features and benefits in their selling efforts. These results indicate that they should spend significant time discussing factors that illustrate legal and financial risk reduction to the customer of dealing with their companies.

Originality/Value/Contribution: The study offers a new look at an age-old problem of enhancing sales performance through a new lens by considering the nature of the product (strategic versus non-strategic) through the perspective of the customer. The findings help to explain the mixed results of previous research. To date, the nature of the product and tradeoffs of attributes that customers are willing to make depending on that product classification have not been the focus, though the results suggest that understanding customer decision-making through this lens may enhance supplier success.     

Exploring the international student recruitment industry through the Strategic Orientation Performance Model

Abstract

International education is an important, and expanding, global industry. However, much remains unknown about the international student recruitment (ISR) industry, its key variables, and its performance outcomes. This study addresses this lack of understanding by developing and empirically testing a conceptual model that investigates ISR performance indicators. The Strategic Orientation Performance (SOP) Model is proposed as an investigative framework. The model is a conceptual representation of the relationships proposed to exist between market orientation, learning orientation, innovativeness, perceived external market effects, and perceived organisational performance. The study adopted a quantitative methodology using a self-administered questionnaire delivered to ISR practitioners via e-mail. Analysis, via partial least squares (PLS), provided support for the SOP Model in the ISR context. The SOP Model extends previous orientation-performance models. Additionally, within a discordant body of market orientation literature, this study aligns with one of the dominant paradigms and, thereby, provides a strong impetus for further research. Furthermore, future research will benefit significantly through the use of the SOP Model as a solid foundation for further discovery in this important research domain.     

Small & Medium Gold & Fashion Enterprises (SMEs) in Arezzo,Italy: Competitive Challenges and Strategic Implications

ABSTRACT

This paper provides some empirical evidence on organizational characteristics and strategies of firms in the Italian gold and fashion industries. The analysis is based on a data set of three SME clusters in Arezzo (a city and province in Tuscany, Italy, southeast of Florence) which led us to the identification of two main alternative strategies which can be implemented when facing the new global competition: a firm-centered brand strategy and an outsourcing strategy (a supply alliance with co-branding possibilities with one or more large Italian firms). We analyzed the resources and competencies of firms that adopted different export marketing strategies and further explored the relationship between strategic choices and performance of participating firms (measured in terms of growth, innovation, and export capabilities). The results show that the choice of a strategy is strongly influenced by the ability of SMEs to respond to changes in consumer behavior and competition, and that some variables significantly affect performance. Both strategies can be effective, and in some cases it is suggested to follow the middle of the road competitive approach: combining the two strategies, exporting own brand directly to the end markets and collaborating with a large firm in order to achieve a sustainable and significant competitive advantage.     

The impact of internal,external, and competitor factors on marketing strategy performance

ABSTRACT

Strategy formulation is commonly understood as the match between a firm’s internal resources and skills and its external environment. Marketing strategy performance is the function of a dynamic, interactive process incorporating internal firm resources, external environmental factors, and competitive actions. The study aims to assess the impact of competitor actions on marketing strategy performance. We develop a model that accommodates the effects of 29 variables (comprising internal marketing strategy variables, external environmental factors and competitors’ marketing mix variables) on business performance. We empirically test the model using simultaneous equation modelling of time-series data on UK car manufacturers collected from publically available resources and annual reports. The results show that external factors, in particular competitors’ marketing mix elements, have a greater influence on a company’s business performance than internal (marketing and non-marketing) strategy variables. Implications for marketing theory and management are discussed.     

Market Orientation in the Chilean Small Business Context

Abstract

Market orientation has been considered a key factor in successful business operations across different markets. To test this assertion, the authors examine the influence of a firm's market orientation on small business performance in the Chilean retail environment. They go on to report empirical information about the characteristics of the market-oriented retailers in Chile. The Kohli, Jaworski, and Kumar (1993) MARKOR scale is used in the study to assess the market orientation in the context of a developing country environment. Data for the study were collected from small retailers in Chile through self-administered questionnaires using a drop-off/pick-up method. The results show a significant correlation between market orientation and small business performance. Path analyses found that the best structure among the Market Orientation dimensions is: Intelligence Generation→ Intelligence Dissemination → Responsiveness. Moreover, these performance measures differed significantly among the three different partitions obtained using a k-means cluster analysis. The findings indicate that the MARKOR scale is both valid and reliable in a diverse Chilean small business environment.     

Servant Leadership,Proactive Work Behavior,and Performance Overall Rating: Testing a Multilevel Model of Moderated Mediation

ABSTRACT

Purpose: The goal of this paper is to investigate whether salesperson proactive behavior mediates the relationship between sales manager servant leadership and salesperson overall performance rating by the sales manager. Moreover, it examines whether salesperson customer orientation and political skill moderate the sales manager servant leadership ? salesperson proactive behavior ─ salesperson overall performance. Design/methodology/approach: Empirical analysis is based on dyadic data from 181 industrial salespeople and their sales managers in a range of different industries (including both manufacturing and service industries). To analyze the multilevel moderated mediation process, this investigation uses Multilevel Structural Equation Modeling (MSEM). Findings: Sales manager servant leadership was positively related to salespeople overall performance rating through their proactive behavior except when their customer orientation was low. Moreover, this relationship between sales manager servant leadership and overall performance rating through proactive work behavior was stronger the greater the salespeople consumer orientation and political skill. Research implications: The study suggests that sales manager servant leadership is indirectly related to salesperson overall performance rating through salesperson proactive behavior. The findings also support subsequent research on salesperson values, skills, and behaviors as moderators in the servant leadership – proactive behavior – overall performance rating relationship. Understanding how these salesperson factors interact with sales management leadership to produce organizational outcomes (e.g., stress, engagement, organizational commitment) are questions that sales researchers may wish to pursue via further study. Practical implications: Sales managers should employ servant leadership to stimulate salespeople proactive work behavior. This study clearly indicates the salespeople need to adopt customer orientation and to have political skill. Hence, sales managers need to try to improve the customer orientation and the political skill of their salespeople through selection procedures or training programs. Originality/value: The relationship between sales manager servant leadership and salesperson overall performance through proactive work behavior has not been addressed and tested in the literature to date.     

Organizational Ambidexterity and Innovation Performance: The Moderating Effect of Entrepreneurial Orientation

The influence of organizational ambidexterity on innovation and the growth of enterprises has gradually become an important research topic in the field of strategic management and organization theory. This paper builds up a theoretical framework of the relationship between organizational ambidexterity and innovation performance with regards to corporate entrepreneurship orientation. We select 175 companies from high and new technology industries in China’s three large cities, Beijing, Tianjin and Dalian, as samples to carry out an empirical test. We find that the balance and complement of organizational ambidexterity are positively correlated with the innovation performance of enterprises; a corporate entrepreneurial orientation has a significantly moderating effect on the relationship between the balance dimension of organizational ambidexterity and innovation performance, yet it has no significant positive moderating effect on the relationship between the combined dimension of organizational ambidexterity and innovation performance.