Alternative operations strategy processes: do they matter?

Abstract

With the increasing significance of business model innovation, and due to the ongoing difficulties encountered in executing formally developed strategies, there is a strong case for studying the functional-level strategy processes from fresh perspectives. This paper examines the significance of alternative operations strategy (OS) processes and organisational context and explores how they relate to operations performance. The empirical evidence was drawn based on the statistical analysis of data collected through 242 survey responses from the senior management staff of the Canadian oil and gas industry. The evidence drawn from the empirical study confirmed that alternative forms of OS development do indeed exist in practice and that certain organisational factors have a direct influence on OS processes. The analysis discerned four strategy process configurations representing singular and multiple combinations of the three process modes identified through the literature review. The results explain the differences between these process configurations in terms of certain contextual factors and operations performance. The findings of this study help advance the understanding of OS processes and may contribute to theory building, particularly what is known as ‘mid-range’ theory, as the evidence was built through the analysis of a relatively large sample of data drawn from an industry sector that has not been reported on in previous studies.