The Role of Formative Measurement Models in Strategic Management Research: Review, Critique, and Implications for Future Research

Author(s):  
Nathan P. Podsakoff ◽  
Wei Shen ◽  
Philip M. Podsakoff
2017 ◽  
Vol 10 (2) ◽  
pp. 168-186 ◽  
Author(s):  
Maheshkumar Joshi ◽  
Sanjeev Jha

Purpose Extant research suggests that managing strategic change has become a key managerial function and this duty encompasses changes in organizational product-market boundaries and organizational structure among many related organizational activities. The need to achieve strategic change arises because of major shifts in the external environment and the subsequent need for the organization to remain viable and competitive in the changed environment. Therefore, the purpose of this paper is to investigate if middle managers are likely to adopt authoritative style while implementing strategic change when they sense organizational survival. Design/methodology/approach “Sensemaking” literature led to development of the authors’ hypotheses and these were tested using the responses of 117 middle managers. The authors used survey-based instrument to collect data and used regression analysis to explicate the responses of the middle managers. Findings Results indicate that when middle managers sense that the survival of the organization is at stake, they are likely to choose an authoritative style. The authors also investigated the moderating role of organizational commitment, strategic posture of the top management team, and hostile business environment on the relationship between perception of survival urgency and the choice of authoritative implementation style. Only organizational commitment moderates this relationship. Research limitations/implications The authors’ data collection was survey based and the authors used a single source for each questionnaire and this process may lead to possibilities of mono-method bias. However, steps were taken to reduce the resultant mono-method bias. The respondents are from a variety of industries and future research may focus on one specific industry. Practical implications The first implication of this study allows us to expand research focus on the adoption of authoritative style, a research area that is not explored very much. The second implication of the study is that middle managers tend to focus on their emotions when it comes to implementing strategic changes. Using arguments from sensemaking the authors show that the perception of need for survival or the perception that business environment is hostile will determine how strategic change could be implemented. Middle managers must be treated as more than just the implementers of the directives/fiats/orders/edicts that originate from the top. Social implications Role of middle managers in strategic change management is critical and the authors suggest that the perception of organizational survival at risk leads to choice managerial style by middle managers. Originality/value The authors have combined ideas from both the strategic management and organizational development fields to understand successfully the implementation of strategic change in a survival urgency situation. In the past, the strategic management literature focused primarily on understanding strategy formulation process, and the process of implementation was generally neglected. The respondents are from a variety of industries. The analysis indicate that membership to any one firm was not impacting the results obtained by the authors and as such allows for results to generalized.


2013 ◽  
Vol 4 (2) ◽  
pp. 112-149 ◽  
Author(s):  
Justina Gineikienė

During the last two decades consumer nostalgia literature has experienced the growing amount of research, nonetheless, the nomological network in the area is still poorly established and fundamental questions of generalizability and measurement of nostalgia effects remain unanswered. This paper represents an attempt to comprehensively assess extant research in consumer nostalgia field, distinguish developments in the literature by summarizing the main findings of previous research and establishing theoretical trends. The analysis reveals that a number of demographic, social and psychological nostalgia antecedents, moderators and outcomes remain at the propositions level or lack the accumulated empirical quantitative support and validation from other studies. Therefore, specific recommendations regarding the development of nostalgia nomological network are provided to aid the continued theoretical and methodological improvements in the area. Since 1991 research in nostalgia has assumed that the correct measurement approach is a reflective one. This paper offers an alternative perspective for viewing and operationalizing nostalgia construct as a formative construct. Guidelines are summarized that aim to assist researchers with decision rules on whether to employ formative or reflective nostalgia measurement for future research. One of the main contributions of this study is to show the need for researchers to explicitly justify their choice of reflective or formative measurement models by supporting it with theoretical arguments and empirical evidence.


2020 ◽  
Vol 3 (4) ◽  
Author(s):  
Hebron L. Adoli ◽  
◽  
James M. Kilika

A focus on the nature of strategic management process and its contribution to answer fundamental question of how firms achieve sustainable competitive advantage and improved performance through use of suitable leadership has led to organizational leaders formulating strategies through approaches that are systematic, rational as well as logical to strategic choices at corporate, business and functional levels. This has continued to be a major milestone in strategic management process in establishing a clear strategy that makes an organization competitive through suitable management of its workforce and application of strategies that are not easily imitated. This calls for an appropriate leadership strategy aimed at eliminating the gap in human capital that exists in various levels of strategic management process in an organization between the current and desired state of leadership in the future that will address the organization deficiencies by considering the right number of leaders required by the firm for the next at least 5 years with required leadership qualities, skills, behaviour, team capabilities and appropriate culture. This study has focused on a comprehensive review of conceptual and theoretical literature that brings out the role of leadership strategy in the context of strategic management process that leads to improved organizational performance. The concept of organizational capabilities and organization context were found to play a relevant role that mediate and moderate this relationship respectively. The study has proposed a suitable theoretical framework that links leadership strategy, organizational capabilities, and context and organization performance based on the identified gaps for guiding future research on leadership strategy. Six theories including; Pasmore model as lead theory, Path-Goal theory, Contingency theory, transformational leadership, Resource based view and Upper echelon theory underpinned the study in understanding the constructs. In summary, based on the reviewed literature, the study on leadership strategy is found critical for organization success and this calls for further testable empirical data and analysis to validate this claim.


2018 ◽  
Vol 11 (11) ◽  
pp. 143
Author(s):  
Janet K. Muthimi ◽  
James M. Kilika

The strategic management literature has laid emphasis on the role of leadership at several phases of the strategic management process. The literature has however not addressed the construct of leadership strategy as well as integrating it into the mainstream literature on strategic management. Researches already done to link leadership with performance have been biased in terms of the scope of focus on the dimension of performance and at the same time have registered methodological and conceptual challenges affecting the generalization of findings. In this paper, the authors integrate the extant literature on leadership with that on leadership strategy and identify issues that call for an expanded scope on the construct of leadership. The paper reviews extant conceptual, theoretical and empirical literature and raises diverse issues that present a case for a new theoretical model suitable to extend the current understanding on leadership and the phenomenon it brings about in organization into new frontiers in management. This paper proposes an integrated theoretical model for linking leadership strategies and firm performance while providing for the role of leadership paradigms, leadership behavioural focus and firm capabilities. The emerging theoretical propositions and implications for future research are discussed.


2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Josephine K. Mulaa ◽  
◽  
James M. Kilika ◽  
Mary J. Namusonge

The literature on strategic management recognizes the pivotal role played by strategic innovation as a strategic choice in organizations in order to create a sustainable competitive advantage. However, although there are emerging calls for the adoption of strategic innovation in a firm’s strategic management process, the concept of strategic innovation is not well understood. The scanty empirical literature reviewed has methodological and conceptual gaps that affect the generalizability of findings even in similar contexts. In this paper, the authors have attempted to review Strategic Innovation and argued that the emerging phenomena from its deployment in firms invite the role of the firm structure and innovative capacity as the firm seeks to enhance its chances of survival in a rapidly changing firm context. The conceptual, theoretical and empirical literature reviewed identified diverse issues that present a case for a theoretical model suitable to advance the current understanding of strategic innovation and the emerging phenomenon in firms. This paper therefore proposes an integrated theoretical model conceptualizing strategic innovation in a firm context and identifies relevant implications for future research.


Author(s):  
Sierk Horn ◽  
Tomoki Sekiguchi ◽  
Matthias Weiss

AbstractThe need for a better understanding of radical uncertainty might have never been greater. Ill-preparedness for natural hazards, a resurgence of serious public health concerns or illusions of control over unruly technology question the extent to which we can ‘really’ shape the world around us. Human-made crises, too, test how we routinely do things. We ask how organisations and actors within them prepare for a collapse of meaning and practise radical uncertainty. Given the breadth and depth of the region’s energy (and, as some would argue, turbulences), Asia provides a fitting context for exploring accommodation to and learning from low-probability, high-impact incidents. By reviewing the business and management research on shocks in Asia, we find that there is a strong human side to dealing with the unknown. We argue that what organisations and actors within them do prior, during and after a shock event is substantially contingent upon cultural environments. To elaborate, we discuss the role of the uncertainty avoidance dimension of national culture in dealing with shock events. We further combine this dimension with the universalism-particularism dimension to discuss future research directions. Our exploration of resultant differences in preparedness, resourcefulness and learning offers a more rounded inquiry into how Asian business actors deal with shocks.


2021 ◽  
pp. 301-318
Author(s):  
D. Eleanor Westney

This chapter focuses on the strategic management of established multinational corporations (MNCs) that operate across multiple locations and how they have addressed the core strategic challenges of how to organize and manage geographically distributed locations. The chapter summarizes the conceptual foundations of MNC strategic management: the global integration / local responsiveness (GI/LR) framework, MNC capabilities for innovation and cross-border learning, the network model of the MNC, and the process approach. This chapter briefly surveys recent research trajectories, including subsidiary management, the role of headquarters, typologies of MNCs, and research on people and processes. Then the chapter identifies questions for future research in terms of four arenas: the changing balance of global integration and local responsiveness, managing regional strategies, cross-border learning in an era of growing resistance to globalization, and MNC responses to global external challenges of climate change and the threat of pandemics.


2020 ◽  
Author(s):  
Hebron L. Adoli ◽  
James M. Kilika

A focus on the nature of strategic management process and its contribution to answer fundamental question of how firms achieve sustainable competitive advantage and improved performance through use of suitable leadership has led to organizational leaders formulating strategies through approaches that are systematic, rational as well as logical to strategic choices at corporate, business and functional levels. This has continued to be a major milestone in strategic management process in establishing a clear strategy that makes an organization competitive through suitable management of its workforce and application of strategies that are not easily imitated. This calls for an appropriate leadership strategy aimed at eliminating the gap in human capital that exists in various levels of strategic management process in an organization between the current and desired state of leadership in the future that will address the organization deficiencies by considering the right number of leaders required by the firm for the next at least 5 years with required leadership qualities, skills, behaviour, team capabilities and appropriate culture. This study has focused on a comprehensive review of conceptual and theoretical literature that brings out the role of leadership strategy in the context of strategic management process that leads to improved organizational performance. The concept of organizational capabilities and organization context were found to play a relevant role that mediate and moderate this relationship respectively. The study has proposed a suitable theoretical framework that links leadership strategy, organizational capabilities, and context and organization performance based on the identified gaps for guiding future research on leadership strategy. Six theories including; Pasmore model as lead theory, Path-Goal theory, Contingency theory, transformational leadership, Resource based view and Upper echelon theory underpinned the study in understanding the constructs. In summary, based on the reviewed literature, the study on leadership strategy is found critical for organization success and this calls for further testable empirical data and analysis to validate this claim.


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