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The Effect of ‘Simplicity’ on the Strategy–Performance Relationship: A Note

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  • G. T. Lumpkin
  • Gregory G. Dess

Abstract

abstract The concept of ‘simplicity’ (Miller, 1993) in strategy making suggests a preoccupation with a single goal, strategic activity, or function. Prior research indicates that simplicity may, under certain conditions, benefit firm performance, but it may also limit an organization's perspective and blind it to the breadth and variety it needs to sustain its success. This field study investigates the role of simplicity as a moderator of strategy–performance relationships. Using moderated hierarchical regression analysis, simplicity was found to enhance performance among firms using cost leadership and focus strategies among a sample of 32 firms. The findings suggest that the strategy making styles and practices of strategic managers influence the character of the whole organization and often have an important impact on organizational outcomes.

Suggested Citation

  • G. T. Lumpkin & Gregory G. Dess, 2006. "The Effect of ‘Simplicity’ on the Strategy–Performance Relationship: A Note," Journal of Management Studies, Wiley Blackwell, vol. 43(7), pages 1583-1604, November.
    • Handle: RePEc:bla:jomstd:v:43:y:2006:i:7:p:1583-1604
    DOI: 10.1111/j.1467-6486.2006.00652.x
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    Cited by:

    1. Ioannis Makedos, 2014. "Venture Capital Organization As A “Guarantee” For The Collaboration Between Smes And Universities Despite Economic Crisis," Romanian Economic Business Review, Romanian-American University, vol. 9(3), pages 10-26, September.
    2. Memili, Esra & Eddleston, Kimberly A. & Kellermanns, Franz W. & Zellweger, Thomas M. & Barnett, Tim, 2010. "The critical path to family firm success through entrepreneurial risk taking and image," Journal of Family Business Strategy, Elsevier, vol. 1(4), pages 200-209, December.
    3. Larrañeta, Bárbara & Zahra, Shaker A. & González, José Luis Galán, 2012. "Enriching strategic variety in new ventures through external knowledge," Journal of Business Venturing, Elsevier, vol. 27(4), pages 401-413.
    4. Martie-Louise Verreynne & Denny Meyer, 2010. "Small business strategy and the industry life cycle," Small Business Economics, Springer, vol. 35(4), pages 399-416, November.
    5. Tian Hongyun & William Adomako Kankam & Florence Appiah-Twum & Isaac Gumah Akolgo, 2019. "Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic Capability," International Review of Management and Marketing, Econjournals, vol. 9(4), pages 63-73.

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