Strategy making and structure: analysis and implications for performance

Article Abstract:

The way a business or an association is organized affects its strategic planning and strategy-making procedures. Using empirical analysis techniques, 97 small- to medium-sized organizations were examined. The examination indicates that: formal structures lead to rationality and interaction in decision-making processes, but discouraged assertiveness; chief executives' personalities affect assertiveness in decision-making more than other factors; the degree of organizational integration determines the average number of participants in the decision-making process and the areas within the organization from which these participants are drawn; and decentralized forms of management and complexity factors have relatively small effects on decision-making. Centralization (or decentralization) is shown to affect planning, risk-taking, and consensus-building activities. The research also indicates that innovative and successful firms have the strongest structure-and-strategy relationships.

Decision-making, Decision making, Economic aspects, Organizational effectiveness, Strategic planning (Business), Industrial organization

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Strategic process and content as mediators between organizational context and structure

Article Abstract:

A series of LISREL analyses showed that aspects of the strategy-making process and the content of business strategies mediate between organizational context ad structure. One dimension of context, chief-executive-officer need for achievement, influences the intended rationality of the strategy-making process, which in turn influences structural formalization and integration. Another aspect of context, environmental uncertainty, relates to strategic product innovation, which in turn influences structural centralization and formalization. Finally, strategic process and content were shown to be related in a manner that orchestrates their mediation between context and structure. We suggest that the latitude for strategic choice causes context and structure to be indirectly and somewhat loosely coupled. (Reprinted by permission of the publisher.)

Business planning

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Relating Porter's business strategies to environment and structure: analysis and performance implications

Article Abstract:

This study investigated the relationships of Porter's business strategies to the structures and environments of undiversified firms. It was shown that strategies must be matched with complementary environments and structures to promote success. The strategy of innovative differentiation is most likely to be pursued in uncertain environments and correlates with the use of technocrats and liaison devices. The strategy of cost leadership is associated with stable and predictable environments and correlates with the use of controls. Unfocused strategies make much use of liaison devices. These relationships were more likely to be significant in groups of high-performing firms than in groups of poor performers. (Reprinted by permission of the publisher.)

Usage, Innovations, Corporations, Diversification in industry, Industrial diversification, Planning

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