The importance of structure and process to strategy implementation |
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Authors: | Eric M Olson Stanley F Slater |
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Institution: | a College of Business and Administration, University of Colorado-Colorado Springs, Colorado Springs, CO 80933-7150, United States b College of Business Colorado State University, Fort Collins, CO 80523-1278, United States c Marketing and Supply Chain Management, Eli Broad Graduate School of Management, 7 Eppley CenterMichigan State University, East Lansing, MI 48824-1121, United States |
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Abstract: | A study involving over 200 senior managers demonstrates that overall firm performance is strongly influenced by how well a firm's business strategy is matched to its organizational structure and the behavioral norms of its employees. The authors identify a taxonomy comprised of four different combinations of structure/behavior types, which they label as: Management Dominant, Customer-Centric Innovators, Customer-Centric Cost Controllers, and Middle Ground. These alternative structure/behavior types are then matched with specific business strategies (i.e., Prospectors, Analyzers, Low Cost Defenders, Differentiated Defenders) in order to identify which combination(s) of structures and behaviors best serve to facilitate the process of implementing a specific strategy. |
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Keywords: | Competitive strategy Organization design Strategic behavior Performance |
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