Strategy-performance linkage: methodological refinements and empirical analysis

2016 ◽  
Vol 10 (3) ◽  
pp. 303-317 ◽  
Author(s):  
Jamil Anwar ◽  
SAF Hasnu
Keyword(s):  
Empirical Analysis ◽  
Standard Procedure ◽  
Strategic Orientation ◽  
Financial Data ◽  
Content Type ◽  
Significant Difference ◽  
Strategy Performance ◽  
And Performance ◽  
Miles And Snow ◽  
Over Time

Purpose Strategic typologies are applied to investigate strategy–performance relationship. The typology of Miles and Snow (1978) is one of them, but the methodology applied for identification of strategic types for archival financial data is questionable on three grounds: no standard procedure for categorization of strategic types; identification of reactor strategy is always ignored; and the behavior of firms’ strategic orientation over time is under-researched. Besides, the assumptions that viable strategies are expected to perform equally well, outperform reactors and distributed evenly are not overwhelmingly supported. The purpose of this paper is to address these issues. Design/methodology/approach A refined scoring methodology is developed and used for identification of all strategic types, including reactors, by investigating the consistency of the firms over time. Empirical analysis using seven years of data of 121 joint stock firms of the textile sector in Pakistan is performed to test the assumptions regarding presence, distribution and performance of strategic types. Findings There is significant difference in the distribution of the strategic types. Pure defenders and pure prospectors are non-existing, whereas a reasonable number of reactors are present. Overall difference in performance among strategies is generally insignificant and viable strategies outperformed reactors. The effect of size on performance is also insignificant. However, there is variation in performance of strategies with variation in size. Strategy is the better predictor of performance than size. Originality/value The transition of strategic stance of the firms over time and the identification of reactor strategy from archived financial data are the important outcomes of the proposed methodology. The proposed methodology can be used for any longitudinal study for identification of all possible strategic types and can also be used for any other typological research.

Strategic patterns and firm performance: comparing consistent, flexible and reactor strategies

2017 ◽  
Vol 30 (7) ◽  
pp. 1015-1029 ◽  
Author(s):  
Jamil Anwar ◽  
SAF Hasnu
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Contemporary Literature ◽  
Strategic Orientation ◽  
Scoring Method ◽  
Content Type ◽  
The Mean ◽  
Strategy Performance ◽  
Mean Differences ◽  
Miles And Snow

Purpose Firms face the paradox of adapting change and remaining stable to control uncertainty simultaneously to maintain their competitive position because both aspects are essential for the firm’s effectiveness. This has raised a debate in the contemporary literature that whether firms should remain consistent or adapt flexibility in their strategic choice to produce better performance? The supporters of both the arguments provide substantial evidence in their favor. The purpose of this paper is to investigate the strategy-performance relationship in this context along with contingent effect of firm size and industry. Design/methodology/approach Empirical analysis using seven years financial data of 307 joint stock firms from 12 industries is done by applying Miles and Snow strategic typology. Scoring method is used to classify the strategic orientation of the firms. Univariate and multivariate regression models are applied to investigate the influence of strategy, firm size, and industry on firm performance both individually and collectively. Findings The results show that most of the firms in Pakistan are consistent in their strategic stance (43 percent) followed by flexible (40 percent) and reactors (17 percent). The mean differences in the performance of consistent, flexible, and reactor strategies show that both consistent and flexible strategies performed equally well and outperformed the reactors. However, there is significant variation in the performance of the strategic types due to the variation in firm size and industries whereas the contingent effect of firm size, industry, and strategy is statistically insignificant. Originality/value The methodology used for the identification of transition of strategic stance of the firms over time to know the consistent, flexible, and reacting behavior of the firms from archived data is the important contribution to the literature. The methodology can be replicated in longitudinal studies for identification of strategic groups in typological research.

Business strategy and firm performance: a multi-industry analysis

2016 ◽  
Vol 9 (3) ◽  
pp. 361-382 ◽  
Author(s):  
Jamil Anwar ◽  
SAF Hasnu
Keyword(s):  
Firm Size ◽  
Business Strategy ◽  
Financial Data ◽  
Unique Contribution ◽  
Content Type ◽  
Miles And Snow Typology ◽  
Strategy Performance ◽  
Pure Strategies ◽  
Miles And Snow ◽  
The Impact

Purpose – The purpose of this paper is to investigate the strategy-performance relationship in a multi-industry setting for joint stock firms operating in Pakistan using Miles and Snow typology. The impact of firm size and industry on performance along with strategy is also investigated. The empirical research evidence on strategy-performance relationship for Miles and Snow typology is updated as well. Design/methodology/approach – Scoring methodology is applied for identification of strategic types, including the reactor strategy. The consistency of the firms over time is also checked. Seven year archived financial data of 320 Pakistani joint stock firms from 12 industries are used for analysis. Descriptive statistics and analysis of variance is used for analysis. Findings – Hybrid strategies are practiced by firms rather than pure strategies. The distribution of strategic types is uneven. There are mixed results for performance difference among strategic types for different industries and firm size. Defending and analyzing strategies are better than the prospecting strategies. Reactors performed better in some industries as well. Originality/value – Proposed scoring methodology can be applied to identify all strategic types including reactors in the longitudinal studies. This can be replicated for other typologies or strategic group classifications. The process for identification of reactor strategy through a consistency check is a unique contribution to the literature, especially when archived financial data are used.

Physical bushfire preparation over time in Victoria, Australia

2017 ◽  
Vol 26 (2) ◽  
pp. 241-251 ◽  
Author(s):  
Carlyn Muir ◽  
John Gilbert ◽  
Rebecca O’Hara ◽  
Lesley Day ◽  
Stuart Newstead
Keyword(s):  
High Risk ◽  
Principal Components ◽  
Content Type ◽  
Significant Difference ◽  
Components Analysis ◽  
Difference Test ◽  
Honest Significant Difference Test ◽  
Preparation Variable ◽  
Physical Preparation ◽  
Over Time

Purpose The purpose of this paper is to examine the level of physical preparation for bushfire among Victorian residents in established high risk bushfire locations, and to assess whether these levels of preparation changed over time. Design/methodology/approach Data were analysed from a telephone survey among Victorian residents (n=614-629) living in high risk bushfire locations over a three-year period (2012-2014). The survey measured residents’ bushfire awareness, knowledge, planning, preparation and engagement with bushfire services. This paper focusses on the extent to which respondents undertook physical preparatory bushfire activities over the three-year period using: first, principal components analysis to generate a single preparation variable by identifying a smaller number of uncorrelated variables (or principal components) from a larger set of data, second, analysis of variance to assess differences in preparation scores between years, and third, Tukey’s honest significant difference test to confirm where the differences occurred between groups. Findings Results indicated only moderate levels of physical preparation for bushfires amongst respondents. The activities that respondents rated the lowest were: “having protective covers for windows” and “having firefighting equipment to protect the house”. A significant difference in total preparation scores over time was observed, F(2, 1,715)=6.159, p<0.005, with lower scores in 2012 compared with 2013 and 2014 scores. Social implications This study found some marginal improvements in levels of physical bushfire preparation from 2012 to 2014. However, the results indicate only moderate levels of preparation overall, despite respondents living in established high risk locations. Originality/value This study provides evidence for the current levels of preparedness in high risk bushfire communities, and emphasises the need for future initiatives to focus on specific bushfire preparation activities but also to consider the broader range of interventions that are likely to contribute to desired safety outcomes.

Strategic orientations, knowledge management (KM) and business performance

Kybernetes ◽  
2019 ◽  
Vol 48 (9) ◽  
pp. 1942-1964 ◽  
Author(s):  
Mona Jami Pour ◽  
Mohammad Asarian
Keyword(s):  
Cluster Analysis ◽  
Knowledge Management ◽  
Business Performance ◽  
High Performance ◽  
Strategic Orientation ◽  
Content Type ◽  
Strategic Orientations ◽  
Strategy Performance ◽  
High Level ◽  
The Relationship

Purpose Despite the huge amount of studies that have investigated the strategy–performance relationships and knowledge management (KM)–performance relationships, there is little consensus regarding the nature of these connections. By reviewing related literature, some notable limitations and inconsistent results are highlighted in extant studies. To address these challenges, this study aims to explore the effects of strategic orientation and KM mechanisms on business performance. Design/methodology/approach The study conducted an empirical investigation of 227 small- and medium-sized enterprises (SMEs) to explore the relationship between strategy−performance and KM−performance. Business strategy is conceptualized as a comparative construct with six dimensions, KM is conceptualized by two types of KM mechanisms of technical and non-technical KM mechanisms and business performance is measured by four dimensions of balanced scorecard (BSC). The cluster analysis was used to explore different aspects of these three constructs. Findings Using cluster analysis, the results indicate that firms with high level of analysis, defensiveness, futurity and proactiveness in strategic orientation have better performance and also the high level of both KM mechanisms another important finding shows that firms with more KM mechanisms have high performance and technical mechanisms have more predictor role on performance. Practical implications This research also has prescriptive implications for strategic managers and KM practitioners. The finding enhanced the understanding of the relationship between strategic orientations, KM and performance. The results assist managers to assess business performance regarding strategic orientations and KM mechanisms of the firms. Therefore, it helps firms to improve strategic resource allocation and exploit KM investment by considering ideal pattern of the performance. Originality/value By reviewing strategic management and KM literature, it is revealed that there are little studies about how the interaction of strategic orientation and KM influences business performance. The main contribution of the study is exploring the profile of the firms by considering their strategic orientation and KM mechanisms and their impact on business performance. This study provides an empirical evidence about interaction of strategic orientations, KM mechanisms and business performance in SME context, which is merely investigated in previous researches.

scholarly journals Diffusion of innovation among Malaysian manufacturing SMEs

2018 ◽  
Vol 21 (1) ◽  
pp. 113-141 ◽  
Author(s):  
Abdullah Al Mamun
Keyword(s):  
Diffusion Of Innovation ◽  
Cost Benefit ◽  
Innovation Adoption ◽  
Strategic Orientation ◽  
Structured Interviews ◽  
Innovation Ecosystem ◽  
Consumer Market ◽  
Content Type ◽  
Service Adoption ◽  
And Performance

Purpose The purpose of this paper is to examine the attributes of innovation adoption and its effects on the performance of Malaysian manufacturing SMEs. Design/methodology/approach Quantitative data were collected from 360 randomly selected manufacturing SMEs through structured interviews. Findings The findings of the study confirmed that, in Malaysian manufacturing SMEs, the degree of persuasion (i.e. relative advantages, compatibility, complexity, trialability and observability), strategic orientation (i.e. consumer, market and entrepreneurship) and firm antecedents (i.e. prior condition, knowledge and risk orientation) have significant effects on the innovation (i.e. product, process and service) adoption and performance of SMEs. Practical implications For policymakers, this study emphasizes the areas to focus on the development of an effective innovation ecosystem for an innovation-led economy. Because SMEs operate with limited resources and capacity, the programs and policies for innovation support systems must focus on providing new innovation information, cost-benefit analyses for new innovation adoption, innovation adoption processes and how new innovations affect performance. Originality/value The paper examines an important, but under-researched issue – designed and tested a model under the premises of the DOI and organizational diffusion of innovation theories which improve the knowledge and understanding about the innovation adoption by manufacturing SMEs.

The predictive value of strategic orientation for ESG performance over time

2020 ◽  
Vol 20 (1) ◽  
pp. 123-142 ◽  
Author(s):  
Nicolas Chevrollier ◽  
Jianhong Zhang ◽  
Thijs van Leeuwen ◽  
André Nijhof
Keyword(s):  
Business Strategy ◽  
Fixed Effect Model ◽  
Strategic Orientation ◽  
Set Covering ◽  
Data Set ◽  
Content Type ◽  
Publicly Traded Companies ◽  
Strategic Orientations ◽  
The Relationship ◽  
Over Time

Purpose Despite the scholarly attention for the integration of sustainability within business strategy and processes, little is known about how strategic orientations of companies influence this integration. Drawing on stewardship theory, this paper aims to analyse the influence of strategic orientation of companies on their environmental, social and corporate governance (ESG) performance and the moderating effect of three different political models of economy (Rhine, British and American). Design/methodology/approach This paper creates a measurement for strategic orientations by using a coding scheme with a five-category evaluation matrix. The main empirical analysis is done by a fixed-effect model with a panel data set covering 179 publicly traded companies over the 2009-2016 period. Findings The conclusions of this paper present that – consistent over time – a stronger orientation on stewardship positively associates with higher ESG performance. Additionally, the political model of economy significantly alters the relationship indicating the effect of strategic orientation on ESG performance. The relationship is significantly stronger in the Rhine model and significantly weaker in the British model, when both compared to the American model. Originality/value The implications of this paper are vital to understanding corporate strategic orientation and its relationship to actual corporate behaviour and long-term performance. Implementing the elements of focus, motivation, commitment, support and communication linked to a stewardship orientation is fundamental to achieve higher levels of sustainability performance.

Risk connectedness of selected CESEE stock markets: a spillover index approach

2019 ◽  
Vol 10 (4) ◽  
pp. 447-472 ◽  
Author(s):  
Tihana Škrinjarić ◽  
Boško Šego
Keyword(s):  
Empirical Analysis ◽  
Stock Markets ◽  
Investment Strategies ◽  
Content Type ◽  
Index Approach ◽  
Dynamic Portfolio ◽  
International Investors ◽  
Developed Stock Markets ◽  
The Empirical Analysis ◽  
Over Time

Purpose The purpose of this paper is to empirically evaluate risk spillovers between selected CESEE (Central, Eastern and South-Eastern Europe) stock markets in order to evaluate the possibilities of an international diversification of a portfolio. Design/methodology/approach The VAR model and the Diebold and Yilmaz (2009, 2012) spillover index are used, with rolling indices estimation over time in order to observe dynamics, which is important for investment strategies. Data are monthly and include selected CESEE stock market indices which were available to the researcher. Findings The empirical analysis for the period of January 2012–June 2019 indicates that some country risks were the net emitter of shocks in the system (Slovenia and Czech Republic), whereas some were net receivers (Croatia and Ukraine). The results are robust with respect to changing the length of the rolling window analysis, which means that investors could utilize such an approach in a dynamic portfolio selection. Research limitations/implications Observing only selected markets due to data (un)availability. Practical implications The paper shows how international investors can utilize the aforementioned methodology in order to make a more detailed analysis of the dynamics of stock markets connectedness so that international portfolios can be rebalanced according to the results and investors’ preferences. Originality/value This is the first such research which focuses on CESEE countries, since existing research is focused on more developed stock markets. Moreover, the empirical analysis extends to commenting the pairwise net indices over time, which is important for the dynamic portfolio rebalancing over time.

Modelling strategic orientation dimensions and performance of small and medium enterprises

2019 ◽  
Vol 14 (3) ◽  
pp. 754-772 ◽  
Author(s):  
Seemant Kumar Yadav ◽  
Vikas Tripathi ◽  
Geetika Goel
Keyword(s):  
Small And Medium Enterprises ◽  
Structural Modeling ◽  
Strategic Orientation ◽  
Decision Makers ◽  
Interpretive Structural Modeling ◽  
Content Type ◽  
Manufacturing Performance ◽  
Different Dimensions ◽  
And Performance ◽  
Medium Enterprises

Purpose The purpose of this paper is to identify and rank different dimensions of strategic orientation and firm’s performance using the approach of interpretive structural modeling. Design/methodology/approach The study uses interpretative structural modeling and the MICMAC technique to establish a hierarchical relationship among different dimensions of entrepreneurial orientation and manufacturing performance of Indian SMEs. Findings The final outcome of interpretative structural modeling and the MICMAC analysis revealed a relationship between the variables under study along with the categorization of all in two different categories, depending upon their driving power and dependency, which decision-makers can also use while devising their strategy to improve performance. Originality/value To date, to the best of the authors’ knowledge, no significant contribution about such interrelationship was reported; therefore, this study is one of its types to fill this gap.

Comparison of the change in interpretative stances of lifelog photos versus manually captured photos over time

2019 ◽  
Vol 44 (2) ◽  
pp. 521-541 ◽  
Author(s):  
Ahreum Lee ◽  
Hokyoung Ryu
Keyword(s):  
Longitudinal Study ◽  
Dynamic Change ◽  
Structured Interview ◽  
Design Guidelines ◽  
Content Type ◽  
Significant Difference ◽  
User Groups ◽  
Two Phases ◽  
Automatic Capture ◽  
Over Time

Purpose The purpose of this paper is to explore how people differently create meaning from photos taken by either a lifelogging camera (LC) (i.e. automatic capture) or a mobile phone camera (MC) (i.e. manual capture). Moreover, the paper investigates the different changes in the interpretative stance of lifelog photos and manually captured photos over time to figure out how the LC application could support the users’ iconological interpretation of their past. Design/methodology/approach A 200-day longitudinal study was conducted with two different user groups that took and reviewed photos taken by either a LC or a MC. The study was structured in two phases: a photo collection phase, which lasted for five days (Day 1‒Day 5), and a three-part semi-structured interview phase, which was conducted on Days 8, 50 and 200. Findings Results revealed that the interpretative stance of the LC group changed greatly compared to the MC group that kept a relatively consistent interpretative stance over time. A significant difference between the two groups was revealed on Day 200 when the lifelog photos provoked a more iconological and less pre-iconographical interpretative stance. This stance allowed the viewers of lifelog photos to systemically interpret the photos and look back upon their past with different viewpoints that were not recognized before. Originality/value This paper contributes to further understand the dynamic change in interpretative stance of lifelog photos compared to manually captured photos through a longitudinal study. The results of this study can support the design guidelines for a LC application that could give opportunities for users to create rich interpretations from lifelog photos.

Revisiting the strategy-performance linkage

2015 ◽  
Vol 53 (5) ◽  
pp. 1083-1106 ◽  
Author(s):  
Mikko Antero Luoma
Keyword(s):  
Strategic Management ◽  
Research Design ◽  
Empirical Studies ◽  
Future Research ◽  
Content Type ◽  
Strategy Performance ◽  
And Performance ◽  
And Cluster Analysis ◽  
Generic Strategies ◽  
Made In

Purpose – The linkage between strategy and performance is central to strategic management. Empirical studies have nevertheless produced mixed results on the nature of this relationship, and in recent decades, very little advancement has been made in research aimed at elucidating this relationship. Accordingly, the purpose of this paper is to identify the approaches to the strategy-performance linkage in previous studies and defines five principles that should characterize future research on this relationship. The paper develops a novel research design that follows these principles and tests the usefulness of this research design in practice. Design/methodology/approach – This paper is exploratory in nature and its empirical methods include content analysis, multidimensional scaling, and cluster analysis. The primary difference between this paper and studies in the mainstream literature on the linkage between strategy and performance relates to the application of an endogenous strategy typology instead of predefined strategy categories. Findings – The analysis shows that the adopted research design based on five principles is applicable to research on the linkage between strategy and performance and that such a research design produces meaningful results. The results support the findings of earlier studies regarding the potential of “hybrid” strategies for achieving superior firm performance. Research limitations/implications – This paper challenges the dominance of generic strategies in research on the strategy-performance linkage and provides statistical data that lay the foundation for more detailed investigation on this relationship. The paper argues for a contextually bound view of strategic management. Originality/value – This paper invigorates the discussion on the linkage between strategy and performance, which has long been diminishing as a research topic in the literature because of contradictory results and the lack of fresh research opportunities. This paper further introduces a methodology that has been underutilized in the study of strategic management.

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