Aligning strategic processes in pursuit of firm growth

Abstract

a b s t r a c tStrategy formation mode refers to the way organizations devise their strategies. While some organizations do so through an explicit, formalized, and planned method, other organizations unintentionally create patterns in their strategic decisions-a strategy formation route that is more emergent in nature. This research explores the relationship between strategy formation mode and firm growth. Further, this article explores two strategic processes-forecasting and long-range objective setting-and their efficacy in association with particular strategy formation modes. Primary and secondary data collected from 103 manufacturing firms were used to test the hypotheses. Results indicate that the relationship between strategy formation mode and firm growth is curvilinear (inverted-U shape). Further, a three-way interactive effect is found between strategy formation mode, forecasting, and long-range objective setting on firm growth.

Board independence and firm performance in Southern Europe: A contextual and contingency approach

“…Dependent variable Consistent with Jensen and Meckling's (1976) assertion that agency relationships within the firm have a strong impact on its growth rate and following other studies of FBs (Schulze et al, 2001;Chrisman, Chua, & Kellermanns, 2009) and NFBs (Amason, Shrader, & Tompson, 2006;Titus, Covin, & Slevin, 2011), we define strategic performance in terms of sales growth 7 , which is assumed to reflect the fulfilment of the economic goals of the firm (Chrisman, Chua, & Litz, 2004).…”

“…We adopted the Standard Industrial Classification of Economic Activities 8 (2003). 7 This variable is a desirable performance metric for several reasons (Titus, Covin, & Slevin, 2011). First, growth is an indicator of the effectiveness with which firms exploit current or new product-market opportunities.…”

Strategic Planning and Implementation Success in Public Service Organizations: Evidence from Canada

“…Resource slack was measured with a scale of six items successfully developed and used by Elbanna (2012). Organization size was controlled because it has frequently been identified as a factor which can influence strategy processes and outcomes (Titus, Covin, and Slevin 2011). In order to fully specify our study model of implementation success, we followed Dean and Sharfman (1996) and attempted to control for the impact of environmental favourability on the strategy implementation success.…”

Slack, Planning and Organizational Performance: Evidence from the Arab Middle East

“…Scholars have identified an organization's age as a critical influence on its ability to use resources effectively (George, 2005). Similarly, an organization's age may have an impact on its strategies (Flatten, 2011), strategic processes (Titus et al ., 2011), and performance (Ju and Zhao, 2009).…”