Right on the money? The contingent effects of strategic orientation and pay system design on firm performance

Tenhiälä, Aino; Laamanen, Tomi

doi:10.1002/smj.2953

Cited by 17 publications

(11 citation statements)

References 82 publications

(183 reference statements)

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“…Despite early calls for research on adaptive strategy implementation (e.g., Lindblom 1959;Quinn, 1978Quinn, , 1980Quinn, , 1981, the structural control view largely dominated the literature throughout the 1980s and 1990s. Even today, it is not uncommon for strategy researchers approach the topic area with a similar framing (e.g., Kiss & Barr, 2017;Tenhiälä & Laamanen, 2018).…”

Section: Review Of Traditional Strategy Implementation Researchmentioning

confidence: 99%

“…Although the use of contingency theory in strategy implementation research has reduced over time, due to the growing popularity of more adaptive conceptions of strategy and structure, researchers have continued to use contingency theory to study specific questions relating to the fit of different types of strategies with different aspects of structure, controls, or incentives. For example, research on on the role of incentives has examined how incentive system design characteristics, such as individual incentives (Shaw et al, 2001) or vertical or horizontal pay dispersion (Tenhiälä & Laamanen, 2018), fit with different strategy types and how this fit influences the effectiveness of implementation.…”

Section: Main Theories Usedmentioning

confidence: 99%

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Completing the Adaptive Turn: An Integrative View of Strategy Implementation

Weiser

Jarzabkowski

Laamanen

2020

ANNALS

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Based on our review of the past forty years of strategy implementation research, we find that the focus of the research area has moved from the pioneering structural control view to a more adaptive conception of strategy implementation. While early research focused mainly on how to conceptualize strategy implementation plans and how to establish optimal structures, systems, incentives, and controls for strategy implementation, the adaptive turn has shifted the research emphasis on to how organizations make sense of and enact strategies in practice.Although this adaptive turn has contributed significantly to understanding how strategies are implemented and adapted, it has also led to a further fragmentation of the field. We put forward an integrative view that aims at combining the distinctive strengths of the two complementary views. Instead of focusing either on conceptualizing or on enacting, we call for researchers to examine the continuous interplay of conceptualizing and enacting strategies at multiple hierarchical levels and in multiple organizational units simultaneously. We hope that our review will inspire future strategy implementation research to complete the adaptive turn through an enhanced, integrative view of strategy implementation. complement existing theories in future research, so furthering an integrative view of strategy implementation.Our review is structured as follows. First, we explain the methodology that we used to select, categorize, and review existing strategy implementation research. Second, we outline the key concepts that provide the conceptual foundation for our review. Third, we discuss the structural control view, its theoretical origins, and its main findings. Fourth, we analyze the emergence of adaptive strategy implementation research, which we call the "adaptive turn." Finally, we conclude by putting forward an integrative view and a research agenda for completing the adaptive turn. METHODOLOGYWe began our review of the research area with a systematic database search using Thompson Reuters Web of Science TM . We limited the search to the ten scholarly management journals with the

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Section: Review Of Traditional Strategy Implementation Researchmentioning

confidence: 99%

Section: Main Theories Usedmentioning

confidence: 99%

Completing the Adaptive Turn: An Integrative View of Strategy Implementation

Weiser

Jarzabkowski

Laamanen

2020

ANNALS

Self Cite

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“…Also we follow recent literature that uses this framework: e.g. research explored the strategic types in Poland to performance (Ingram et al , 2016), in The Netherlands in regard to customer orientation and performance (Frambach, Fiss and Ingenbleek, 2016), in China to performance (Luo and Park, 2001), in Saudi Arabia and how culture effects the strategic orientation (Robertson et al , 2015), how ownership type of a firm in China will be related to the strategic orientation (Peng et al , 2004), how the typology can be more effectively measured by a balanced scorecard in Iran (Khani and Ahmadi, 2012), how pay systems will differ based upon strategic orientation in Finland (Tenhiälä and Laamanen, 2018), how the framework can be used through a real options approach (Riley and Hogan, 2016), performance and JVs in China (Luo et al , 2001), business ties and strategic orientation in China (Lee, 2019), etc.…”

Section: Hypotheses Development Relative To Translating Knowledge Into Global Business Strategiesmentioning

confidence: 99%

The performance implications of knowledge management and strategic alignment of MNC subsidiaries

Dabić

Kiessling

2019

JKM

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Purpose The purpose of this paper was to investigate antecedents and results of strategic choices of multinational corporation (MNC) subsidiaries in Croatia economy. Hence, the authors examined knowledge management and its association with performance. Additionally, they explored which of the strategies will be most likely chosen by subsidiaries in transitional economies that are characterized by market volatility and uncertainty. Design/methodology/approach Data were collected from a survey of 131 MNC subsidiaries operating in Croatia. To test the theoretical correlation between knowledge management capabilities and strategic orientation, the authors used the ANCOVA method and controlled for industry, years in international business and firm size. Findings The results pointed out the recognized necessities for a specific alignment between environment, strategy and knowledge management capabilities. The findings also suggest that there is a positive relationship between knowledge management and performance. Research limitations/implications As with most of the research, this paper has limitations. First, all data were collected using self-report surveys raising the possibility of response set biases. Additionally, all data were collected at one point in one country specifically in Croatia. Practical implications Clearly, there is substantial interaction between the MNC subsidiary’s environment and the MNC subsidiary’s strategic orientation. Most notably, the environment studied here was at the competitive and consumer market level. Firms need to develop a strategic plan for knowledge management based upon the local environmental influences. Social implications Other firms from Central and Eastern European and developed countries may compare their own environment, strategy and knowledge management practices in MNCs with findings from Croatia to be aware of similarities and market differences. Originality/value The strategic employment of knowledge acquisition, conversion and application are examined across firms using the Prospector, Analyzer, Defender and Reactor strategic orientations.

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“…Apart from overall staff salary, we also tried to separately measure managerial and nonmanagerial staff salary given our interest in outcomes to address the existence of vertical and horizontal pay dispersion in firms [27,28]. As firms might want to control or even reduce pay for nonmanagerial staff or nonskilled labor, it is more reasonable to distinguish managerial and nonmanagerial staff remuneration in separate measurements to avoid plausible mixed effects.…”

Section: Identification Strategiesmentioning

confidence: 99%

The Impact of an Energy Efficiency Improvement Policy on the Economic Performance of Electricity-Intensive Firms in Ghana

Lee

Lotsu²,

Islam

et al. 2019

Energies

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This paper investigates the economic impact of an energy efficiency improvement policy on electricity-intensive firms in Ghana. The policy imposed a penalty on these electricity-intensive firms, which are referred to as special load tariff (SLT) customers, when their power factor was below 90%. This paper applies the regression discontinuity design (RDD) to the panel data of these SLTs ranging from 1994 to 2012, excluding those years characterized by energy crisis. The results show adverse impacts of the policy on the employment and salary levels of the firms in the long run, in particular, the small- and medium–voltage firms. The results indicate that small- and medium–voltage firms are economically vulnerable to the penalty policy in the long run and recommend two policies to overcome this challenge. Firstly, the penalty for power factor improvement should not be imposed identically across firms with different voltage levels. Secondly, firms that satisfy the power factor standard should receive subsidies to improve their competitiveness in the market.

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Right on the money? The contingent effects of strategic orientation and pay system design on firm performance

Cited by 17 publications

References 82 publications

Completing the Adaptive Turn: An Integrative View of Strategy Implementation

Completing the Adaptive Turn: An Integrative View of Strategy Implementation

The performance implications of knowledge management and strategic alignment of MNC subsidiaries

The Impact of an Energy Efficiency Improvement Policy on the Economic Performance of Electricity-Intensive Firms in Ghana

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