Top Management Team Characteristics, Competitive Environment and Strategy Implementation

Abstract

Competing favorably in the market requires finding a perfect fit between a firm’s resources and the business environment. Strategy is the stewardship by top management that aligns organizational resources and capabilities to the environment with the ultimate goal of achieving superior and sustainable performance. The current study was designed to determine the influence of competitive environment on the relationship between top management team characteristics and strategy implementation. The study adopted the descriptive cross-sectional survey design. Data was obtained by administering structured questionnaire mailed to top managers in tea factory companies in Kenya. The moderation test was carried out using the product term of the standardized scores for top management team characteristics and competitive environment respectively. Data was processed through regression analysis. While we demonstrate that top management team characteristics had significant influence on strategy implementation, the results of moderation tests were not statistically significant. Consequently, our hypothesized moderating influence of competitive environment on the relationship between top management team characteristics and strategy implementation was not supported. Our findings raise theoretical questions on whether competitive environment is more relevant during strategy formulation process or execution stage. We conclude that companies implementing strategy in stable competitive environment have predictable implementation of planned strategy. We further conclude that external insulation from competition by umbrella marketing agency reduces the influence of factors within the competitive environment on the relationship between top management team characteristics and strategy implementation. However, the temporary insulation of the firm from competition exposes it to competitive disadvantage in the event that the marketing agency is destabilized by forces both from within and external to it.

Strategic Management Processes and Performance of Agro Processing of Small and Medium-Term Enterprises in Uganda

“…It is therefore recognized globally that economic development depends heavily on the small and medium sized enterprises (SMEs) and Uganda is no exception to this. SMEs are the most important source of new jobs and they play a critical role in income generation as well as the industrialization processes (Mayende & Owino, 2020). However, most small businesses fail within their early stages of operation mainly due to undercapitalization and/or lack of proper management and business skills, which is the key role for strategic management (Ali & Qun, 2019).…”

“…Thus, execution must be controlled and evaluated if the strategy is to be successfully implemented and adjusted to changing conditions. However, during implementation, various challenges are encountered and need to be addressed if the strategy is to be realized (Mayende & Owino, 2020). Muendo & Ogutu (2020), determined the strategies applied by KMTC and the performance of the organization.…”

Strategic Agility and Sustainable Competitive Advantage: How to Leverage Top Management Team Characteristics

“…Zhanglan, Awino, Yabs, and Wainaina (2021), in a study of Chinese multinational corporations in Kenya concluded that top management team characteristics positively influenced sustainable competitive advantage. In the context of the tea sector in Kenya, Mayende and Joseph (2020), found that implementation of strategy is dependent on top management team characteristics. Notably the competitive environment did not moderate the association between top management team characteristics and implementation of strategy in the tea sector.…”

“…Shahab et al (2018) documented that top management team characteristics significantly impacted competitive advantage. Reviewed literature revealed that top management team characteristics impacted organisational outcomes in significant ways as the upper echelons determined how, when and where to play to outmaneuver rivals and win (Hambrick & Mason 1984;Li, 2017;Shahab et al, 2018;Mayende & Joseph, 2020: Abatecola & Cristofaro, 2020Zhanglan et al, 2021;Firk et al, 2022).…”

Forms of organization of production activity of enterprises in terms of probabilistic nature of demand

“…Dyna mism of market changes, current demand for goods produced by technologically specialized enterprises, and orientation to the individualized demand of the consumers of technically ad vanced products make enterprises pay more attention to the organization of activities in the medium of network structured, comparing with the issues of internal business organization of a company. It is highlighted that the selection of a rational form of organization of company interaction within the network structures depends on the degree of interconsistency of their goals and degree of uncertainty of market situation [3,4]. Stud ies of national scientists concerning that problem are focused mainly on the aspects of logistic interaction [5,6].…”