The impact of organisational alignment on the effectiveness of firms’ sustainability strategic performance measurement systems: an empirical analysis

Sustainability is becoming a mainstream issue for many organisations. A limited number of studies exist, however, on integrating sustainability into daily practices. Indeed, most of the research to date addresses only the definition and motivation for companies’ interest in environmental and social concerns. This paper contributes to the research on integrating sustainability into companies’ daily activities both directly and indirectly. It analyses the extent to which top management’s commitment to sustainability directly affects structural and social alignment and the effectiveness of measurement systems that monitor sustainability strategic performance and indirectly impacts firms’ social and environmental performance. Based on a quantitative analysis of survey responses from 405 large European companies, this paper documents the limited impact of social alignment to firms’ social and environmental performance. More specifically, the results challenge the diffuse belief that the alignment and commitment of middle managers to sustainability strategies as defined by the upper echelons have a relevant impact on the company’s social and environmental performance.     

Green supply chain performance measurement using the analytic hierarchy process: a comparative analysis of manufacturing organisations

The main purpose of this research is to develop and deploy an analytical framework for measuring the environmental performance of manufacturing supply chains. This work's theoretical bases combine and reconcile three major areas: supply chain management, environmental management and performance measurement. Researchers have suggested many empirical criteria for green supply chain (GSC) performance measurement and proposed both qualitative and quantitative frameworks. However, these are mainly operational in nature and specific to the focal company. This research develops an innovative GSC performance measurement framework by integrating supply chain processes (supplier relationship management, internal supply chain management and customer relationship management) with organisational decision levels (both strategic and operational). Environmental planning, environmental auditing, management commitment, environmental performance, economic performance and operational performance are the key level constructs. The proposed framework is then applied to three selected manufacturing organisations in the UK. Their GSC performance is measured and benchmarked by using the analytic hierarchy process (AHP), a multiple-attribute decision-making technique. The AHP-based framework offers an effective way to measure and benchmark organisations’ GSC performance. This study has both theoretical and practical implications. Theoretically it contributes holistic constructs for designing a GSC and managing it for sustainability; and practically it helps industry practitioners to measure and improve the environmental performance of their supply chain.     

Strategic monitoring at a chemical company

This article describes the development and introduction of a performance measurement system at the Dutch chemical company DSM. This system aims to measure progress toward strategic objectives and key success factors. As such, it can be regarded as a strategic monitoring device which supplements the customary financial controls. The article outlines the company context, the reasons for developing performance measurement, the development and implementation process and the actual approach adopted and concludes with some practical guidelines based on the experiences gained in this case.     

A decision support methodology for strategic planning in maritime transportation

This paper presents a decision support methodology for strategic planning in tramp and industrial shipping. The proposed methodology combines simulation and optimization, where a Monte Carlo simulation framework is built around an optimization-based decision support system for short-term routing and scheduling. The simulation proceeds by considering a series of short-term routing and scheduling problems using a rolling horizon principle where information is revealed as time goes by. The approach is flexible in the sense that it can easily be configured to provide decision support for a wide range of strategic planning problems, such as fleet size and mix problems, analysis of long-term contracts and contract terms. The methodology is tested on a real case for a major Norwegian shipping company. The methodology provided valuable decision support on important strategic planning problems for the shipping company.     

Digital orientation: Conceptualization and operationalization of a new strategic orientation

Although there is ample evidence that digital technologies are strategically important for value creation, extant literature lacks holistic concepts that capture an organization’s strategic orientation concerning digital innovation and transformation initiatives. This study integrates recent digitalization themes with IT business alignment research to conceptualize a new strategic orientation construct: digital orientation. The construct is manifested in four dimensions which we operationalize for computer-aided text analysis. We validate the construct based on 6498 shareholder letters from large US firms over 16 years. Building upon the resource-based view, we validate the digital orientation construct by linking it to firm performance. Our findings advance the literature on strategic orientations and bring the domains of strategy and information systems closer together. The novel digital orientation construct and the validated measurement instrument lead to many new research opportunities.     

Only a matter of chance? How firm performance measurement impacts study results

Although strategic management research is well aware of the importance of construct measurement, surprisingly little rigor is applied regarding its core concept, firm performance. Using the example of the resource-based view (RBV), this paper demonstrates how divergence between theory-building and construct measurement regarding firm performance can produce misleading conclusions. The RBV seeks to explain value creation in the marketplace, yet empirical studies often measure various aspects of firm financial performance. Building on appropriation theory, I show that it is not possible to infer to changes in firm value creation from observed changes in firm financial performance measures and vice versa due to an omitted variable bias: the neglect of the relative bargaining power of stakeholders. This paper derives conclusions for research practice and suggests theoretically meaningful ways of bridging the gap between value creation and firm financial performance in the RBV framework.     

The social construction of strategic coherence: Practices of enabling leadership

The construction of “strategic coherence,” defined as the development of a system of mutually compatible meanings among organization members about desirable organizational directions, is clearly a crucial issue for organizations. Yet, how to achieve it is in part an open question. While previous studies have considered how strategic coherence may emerge across top levels of management through strategic planning activities and negotiations among senior leaders, we know much less about the contribution of other actors and processes behind the scenes (in non-strategy roles). Drawing on an ethnographic study of a public hospital's planning and project management practices, this paper therefore focuses on the bundles of practices, people and tools through which strategic coherence can emerge across different levels and sectors in mundane activities. We build on the concept of “enabling leadership”, grounded in practice theories of leadership, as our analytical lens. The study reveals how strategic coherence is socially constructed by practices of ‘fueling’, ‘shaping’ and ‘entwining’ mutually compatible meanings, in interactions among diverse people and tools. We propose a grounded model of the construction of strategic coherence as the progressive socialization of meanings about organizational direction that is not just administered from the top, nor naturally emergent from the grass-roots, but that is a collective and inherently socio-material accomplishment of enabling leadership.     

The development of strategic management in the non‐profit context: Intellectual capital in social service non‐profit organizations

Very little systematic research has examined the applicability of strategic management concepts including SWOT (strengths, weaknesses, opportunities and threats) analysis, industrial organization, resource‐based view and core competency, knowledge‐based view, Balanced Scorecard and intellectual capital (IC) through the lens of strategic management development in the non‐profit context. This paper aims to examine the above concepts in the light of the unique non‐profit environment and determine which one is most applicable to social service non‐profit organizations (SSNPOs) in the knowledge economy. Based on a review of the development of strategic management with a focus on the above concepts within the non‐profit context, this paper argues that the IC concept is more effective compared with the other concepts in the social service non‐profit sector. The paper is considered as a starting point and serves as a milestone in applying IC as a strategic management conceptual framework in the social service non‐profit sector. It helps to build a nascent body of literature suggesting that IC can be used as a competent strategic management conceptual framework in the social service non‐profit sector. A better understanding of the strategic management development in the non‐profit context also helps non‐profit leaders to appreciate that IC is the most appropriate strategic management concept in SSNPOs. The increased awareness of the IC concept in SSNPOs, as a result of this paper, will probably generate further research from both academic scholars and non‐profit practitioners.     

Introducing strategic quality management

This paper introduces strategic total quality management (STQM) as an extension of total quality management (TQM). STQM is defined as a quality management philosophy that views quality from the overall performance of a firm. It defines quality as being driven by customer and environmental needs and looks to identify critical factors that will determine the survivability and competitiveness of a firm in the near future. A contrast between total quality assurance, total quality management and strategic total quality management is presented using ten principles of quality. The dimensions of STQM are also identified and defined and STQM transformation frameworks are presented to show the process of implementing STQM. The strategic cycle presented here is linked to the popular PDCA or Deming cycle. Furthermore, top management strategies and reasoning for this new focus and strategic targets are identified, grouped and discussed.     

Using strategic planning to drive strategic change

This article describes a case history of strategic planning, learning and change within a major division of Dowty plc. At Dowty CASE, a telecommunications company, the management team used strategic planning as a structured learning process to generate strategic change. There are many lessons which academics and practitioners alike can learn from this case of strategic planning and change in action.     

Managing design and designers for strategic renewal

For producers of traditional or high-tech consumer durables seeking to differentiate themselves from their competitors, the role of the product designer is increasingly taking a key role. In fact design and designers can contribute to corporate strategic renewal, and this paper proposes a framework for understanding how this can be achieved. Building on a study of outstanding innovators in product design – names such as Apple, Alessi and Bang & Olufsen – the authors describe design-driven renewal as a four-phase process stimulated and supported by design, combining continuous product innovation with the periodic revision of the strategic course of the company. For each phase, it discusses the specific role of managers and the most common pitfalls that arise from poor management of the process.     

Integrating the Content and Process of Strategic MIS Planning with Competitive Strategy*

This paper presents a framework that links strategic MIS planning and business strategy and relates it to competitive advantage and company performance. To achieve this objective, the paper first delineates the dimensions of strategic MIS planning, focusing on both content and process issues. The notion of fit within dimensions, between sets of dimensions (process and content), and between MIS planning and competitive strategy is also introduced. Next, employing the Miles-Snow typology of business strategy, the paper posits normative differences in the dimensions of strategic MIS planning along different business (or competitive) strategies. The implications of our study for both decision makers and scholars are discussed. Propositions that tie competitive strategy, strategic MIS planning, and company financial performance are then presented. The paper concludes by providing direction for future research.     

Design of a strategic planning management information system

Information systems that are to support strategic planning must be developed on bases that reflect the unique nature of strategic organizational decisions. This paper presents a systems design methodology which implements five basic criteria for the design of a strategic planning Management Information System (MIS). The methodology uses discriminant analyses of the perceived importance to managers of various categories of strategic information to delineate the most significant information requirements of various managerial groups. These results are augmented with similar analyses based on the personal characteristics of the potential system users in order to implement a design criterion related to the integrated nature of a planning MIS and a ‘teaching’ objective which is posited to be valid and feasible for such a system.     

Definitions and linkages between operational and strategic flexibilities

This paper aims at clarifying the concept of strategic flexibility, starting from that much more common of manufacturing flexibility (or operational one). After characterizing the dimensions of the latter, a classification of strategic flexibility is presented which distinguishes four categories. The measures of strategic flexibility are also investigated. Then two analogies are pointed out with the operational flexibility. The first, of the cause-effect type, is on two levels: at the business level, the operational flexibility estimates the variation of practices, while the strategic flexibility measures the effect obtained on performances; at the corporate level, the operational flexibility estimates the variation of competences, while the strategic flexibility evaluates the change in business. The second analogy, related to the classification variables, permits the main types of operational and strategic flexibilities to be placed in a single framework. So this study seeks to provide a framework—which has not been proposed in prior literature—for analyzing and evaluating the correlated concepts of operational and strategic flexibilities, to create a theoretical foundation for future research and empirical testing.     

Supplier Rationalization: A Sourcing Decision Model

We draw on extant literature on strategic sourcing and supply base rationalization to anchor our argument that measuring supplier performance diversity is germane to executing an effective supply base rationalization strategy. We explicate how a novel approach to data envelopment analysis (DEA) efficiency assessment can be utilized to measure this performance diversity. More specifically, our methods are anchored in cross efficiency analysis in DEA that allows for evaluating the efficiency of a supplier with respect to the optimal weights (strengths) of its peers. This methodology is applied to an actual supplier dataset of a large multinational telecommunications company in categorizing their supply base into groups for effective supplier rationalization. We conclude that measuring and analyzing the performance diversity within the framework of DEA provides a mechanism for firms to better balance a rationalized and diversified supply base with unique skills.     

The sense of it all: Framing and narratives in sensegiving about a strategic change

Managers leading strategic change processes have to be skilled language users in order to convince others of the necessity of change and to shape the interpretations of their followers in a preferred direction. This paper asks how and why managers employ certain forms of language in their sensegiving during strategic change, and when these managers are effective in their language use to change the sensemaking of others in the organization. On the basis of a longitudinal case study of a European multinational corporation, we find that effective sensegiving is about providing organizational members with a pragmatic form – a way of making sense rather than, as previous research suggests, about providing them with pre-packaged meanings. We extend prior research by distinguishing the effects that the different linguistic forms of managerial sensegiving have on organizational sensemaking. Furthermore, the managers we studied were effective in their sensegiving when they combined framing and narratives. These two forms of language supported each other by amplifying the overall effect on organizational sensemaking. This notion of a combined use of framing and narratives complements previous research, which has largely studied them separately.     

CEO satisfaction and intended strategic changes: The moderating role of performance cues

How do CEOs react to attainment discrepancies in their organizations' performance? Scholars have generally argued that (only) when performance falls below a certain aspiration level do CEOs intend to change the organization's strategy. However, empirical evidence on this issue is ambiguous and inconclusive. We address this puzzle directly by studying how CEOs' cognitive interpretations of performance (their satisfaction with the firm's performance) affect the magnitude of intended strategic changes, and we explore the moderating effect of the context (performance compared to the industry) on this relationship. Using a sample of medium-sized organizations, we find that CEOs' satisfaction with performance is negatively related to intended strategic changes, as expected, but only in contexts of poor performance compared to the industry. The negative relationship becomes less pronounced when performance compared to the industry reaches a certain threshold and even appears to reverse when the latter is extremely high. Moreover, exploratory post hoc analyses tentatively suggest the existence of two alternative intended change trajectories: contractive as a reaction to dissatisfaction and poor performance, and expansive as a response to satisfaction and high performance. These findings help to contextualize the effects of attainment discrepancies in light of conventional performance feedback theory and alternative theoretical perspectives.     

The stability of strategic alliances: Characteristics, factors and stages

This paper presents a theoretical framework for understanding the evolutionary dynamics of strategic alliances. Using an integrated process model, we analyze the conceptual characteristics and antecedents of the stability of strategic alliances. The primary purpose of this study is to (1) conceptualize and characterize alliance stability to fill the academic gap in the literature, and (2) identify a range of endogenous factors underlying alliance stability across four developmental stages — partner selection, structuring/negotiation, implementation and performance evaluation — so as to fill the managerial relevance gap. From the discussion, we develop a number of propositions to facilitate future empirical testing of our conceptual model. Finally, we indicate some key implications for theoretical research and managerial practice.     

The structure and evolution of the strategic management field: A content analysis of 26 years of strategic management research

This paper analyses 26 years of strategic management research published in Academy of Management Journal, Academy of Management Review, Administrative Science Quarterly and Strategic Management Journal. Through a content analysis, it studies the relationships between the subfields of strategic management. A multiple correspondence analysis provides a map of keywords and authors, and a framework to track this literature over the 26‐year period. A discussion of future pathways in the strategic management literature is also provided.     

Strategic planning in small and medium-sized companies

In analysing the characteristics of strategic planning applications in different types and sizes of companies, confusion often arises not because of the application but because of the definitions utilized. This paper analyses the use of strategic planning concepts in small and medium-sized companies in Holland. As the author points out, in this context the definition of small and medium-sized is determined by five strategically relevant criteria which are distinctive. The author points out, however, that whilst these criteria are distinctive of the category of small and medium-sized companies surveyed, they do not all have to occur at the same time; the higher the number that do occur, the more typical the company. Whilst this paper does not, as the author admits, represent the result of a systematic survey, the authors wide experience as a consultant is in itself a valuable background to his analysis. Indeed, the findings stated in this paper represent an analysis of the strategic planning practises of some 75–100 companies. Therefore, in view of the detailed criteria utilized and the number of companies analysed the results represent an important addition to our knowledge of the application of strategic planning.