A Large-scale Second-order Structural Equation Model of the Influence of Management Participation on Organizational Planning Benefits

Abstract

This study analyzes the relationship between management participation in strategyformation and organizationalplanning benefits with the construction and subsequent empirical validation of a largescale structural equation model with 57 items. This model simultaneously considered first-order and second-order measurement models as well as the structural model. Methodological emphasis was placed on developing expanded conceptualizations of these strategy constructs by modeling them as second-order factors and expressing their defining constituent domains of content as first-order factors. Results indicate a strong causal linkage between management participation and two classes of strategic benefits, suggesting that management participation enhances the effectiveness of the strategy process.

Understanding consumer perceived value of casual sportswear: An empirical study

“…Path coefficients should relate each first-order construct to its second-order construct and therefore both the substantive and statistical contribution of each first-order construct can be estimated and evaluated. (Gerbing et al, 1994;Koufteros et al, 2009). The specific statistical examinations conducted include the modelto-data fit, unidimensionality, reliability, and construct validity (including both convergent validity and discriminant validity).…”

The impact of participation in strategic planning on managers’ creation of budgetary slack: The mediating role of autonomous motivation and affective organisational commitment

“…We chose these two variables as mediating mechanisms because both motivation and organisational commitment are important variables in the strategic management and budgetary slack literature. More specifically, Gerbing et al (1994) reported that PSP positively influences organisational commitment and motivation and earlier budgetary slack research has also recognized the role of motivation (e.g. Becker and Green, 1962) and organisational commitment (Nouri and Parker, 1996).…”

“…Allowing managers PSP thus implies involving them in and allowing them to influence the long-term goals and objectives of the organisation (Freeman, 1989). As such, we recognise both the quantity and quality aspect of management participation in the strategy process, as recommended by Gerbing et al (1994). Second, we engaged in a thorough examination of the strategic management literature and conducted in-depth interviews with three senior managers and one middle manager 10 to fully grasp the process of strategic planning in both theory and practice.…”

Bridging the Conceptual Frameworks of Constraints Negotiation and Serious Leisure to Understand Leisure Benefit Realization

“…The second-order factor models were found to better explain the concepts of leisure constraints and negotiation strategies because these concepts are conceptualized in a hierarchical manner (Gerbing, Hamilton, & Freeman, 1994;Godbey et al, 2010). Previous studies on the constraints negotiation process (e.g., Hubbard & Mannell, 2001;Lee & Scott, 2009) aggregated scores of each first-order construct and then treated them as manifest variables in data analysis.…”