An experiment in the usefulness of a strategy map

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/ authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. SummaryPurpose -The objective of this study is to investigate the effect of a strategy map on the quality of decision making.Design/methodology/approach -An experimental design is used in this study. A total of 24 participants were randomly assigned into two groups -a control group and a treatment group. Each participant completed two rounds of the experiment covering 24 decisions using a simulation game. The multiple regression technique is used as the analysis tool in this study.Findings -The results show that strategy maps do not affect the performance of participants' decision making. Research limitations/implications -This research employs the laboratory experimental design. Thus the external validity (the generalizability) is limited.Practical implications -Results obtained from this research suggest that a strategy map alone is not an effective tool to help managers make better decisions. More details, such as a correlation between strategic measures in the strategy map or guidelines for the use of the map, could help make a strategy map more useful.Originality/value -This study tests the cause and effect relationship between using a strategy map and the results of decisions made. Unlike many studies that employ the survey method in which confounding variables cannot be controlled, results from this experiment suggest that a simple strategy map alone does not improve the quality of decision making. This finding can thus be valuable to managers who are considering using a strategy map as a management tool.

Modeling cause and effect relationships of strategy map using fuzzy DEMATEL and fourth generation of balanced scorecard

“…SM shows how drawn objectives from four BSC perspectives are linked together in a chain of cause-and-effect relationships . Introduced strategic tools, could stimulate managers to ascertain whether the current strategy is applicable to the current situation and eventually lead to a revision of current strategy (Rompho, 2012). This use of MS is a ''strategic learning loop''.…”

Corporate sustainable business practices and talent attraction

“…This is achieved through factorial design with two levels and examining survey data collected from 66 respondents. Although the small number of observations inherently limits the generalizability of our research, it is not uncommon for studies with experimental designs to have a small number of observations (Bujisic et al, 2014;Rompho, 2012). As organizations face mounting pressure to more efficiently and effectively utilize their resources, it is also paramount to identify the optimum strategy of investment in sustainability dimensions to maximize the positive impact on future employees.…”

“…A number of previous experimental studies have also used a small sample size. For example, the study by Rompho (2012) used only 24 participants, whereas the study by Bujisic et al (2014) used only 35 subjects.…”

Interrelation between Strategy Maps and other Implementation Tools and Actions

“…Lev (2001) emphasises also the aspect of the complexity of resources and difficulties in their estimation. As shown by Rompho (2012), there is no clear relationship between the use of the strategy map and the decision-making process along with its improvements. This results from the lack of mutual correlations between individual measures and map elements which allows managers to make arbitrary interpretations and use their own mental models.…”