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How strategy‐making processes can make a difference

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  • Stuart Hart
  • Catherine Banbury

Abstract

Strategy‐making is usually portrayed in dichotomous terms: rational vs. incremental, or formulation vs. implementation. It may, however, be more valid to think of organizations as entities capable of developing resources and skills in multiple strategy‐making process modes. This paper first develops measures to identify firms with different levels and types of strategy‐making process ‘capability’ then examines empirically their relationships to five dimensions of perceived performance, using data collected from a sample of 285 top managers. Results indicate that firms with high process capability–the simultaneous use of multiple strategy‐making process modes–outperfom single‐mode or less process‐capable organizations.

Suggested Citation

  • Stuart Hart & Catherine Banbury, 1994. "How strategy‐making processes can make a difference," Strategic Management Journal, Wiley Blackwell, vol. 15(4), pages 251-269, May.
    • Handle: RePEc:bla:stratm:v:15:y:1994:i:4:p:251-269
    DOI: 10.1002/smj.4250150402
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    1. Rhys Andrews & George A. Boyne & Jennifer Law & Richard M. Walker, 2012. "Strategic Management and Public Service Performance," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-34943-8, October.
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    3. Nicodemus M. Mutinda & James M. Kilika, 2019. "TMT Cognitive Capability and Organizational Outcomes: A Theoretical Review," International Business Research, Canadian Center of Science and Education, vol. 12(8), pages 31-52, August.
    4. Jialin Gui & Dashuang Dai & Qilong Zong, 2024. "Driving Configuration for Growth of New Technology-Based Ventures in China from an Optimal Distinctiveness Perspective," Sustainability, MDPI, vol. 16(5), pages 1-23, February.
    5. James J. Chrisman & Jess H. Chua & Franz Kellermanns, 2009. "Priorities, Resource Stocks, and Performance in Family and Nonfamily Firms," Entrepreneurship Theory and Practice, , vol. 33(3), pages 739-760, May.
    6. E Tapinos & R G Dyson & M Meadows, 2011. "Does the Balanced Scorecard make a difference to the strategy development process?," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(5), pages 888-899, May.
    7. F O'Brien, 2011. "Supporting the strategy process: a survey of UK OR/MS practitioners," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(5), pages 900-920, May.
    8. Shahab Sharfaei & Jeen Wei Ong & Adedapo O. Ojo, 2022. "The Impact of Industry Forces on International SME Performance in Iran: The Mediating Effect of Competitive Advantage," Administrative Sciences, MDPI, vol. 12(4), pages 1-16, October.
    9. Mwangola, Willis N. & Mackelprang, Alan W. & Burke, Gerard J., 2024. "Performing in Uncertain Operating Environments: Buffer Inventory, Volume Flexibility or Both?," International Journal of Production Economics, Elsevier, vol. 268(C).
    10. Karlijn Jojanneke Nijmeijer & Isabelle Natalina Fabbricotti & Robbert Huijsman, 2015. "Creating Advantages with Franchising in Healthcare: An Explorative Mixed Methods Study on the Role of the Relationship between the Franchisor and Units," PLOS ONE, Public Library of Science, vol. 10(2), pages 1-21, February.
    11. Dannenbaum, Judith & Edinger-Schons, Laura Marie & Rese, Mario & Plötner, Olaf & Wieseke, Jan, 2020. "What Does it Take to Successfully Implement a Hybrid Offering Strategy? A Contingency Perspective," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 4(2-3), pages 100-120.
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    13. Cemal Zehir & Isa Hemedan, 2020. "Mediating role of learning capability in the relationship between authentic leadership and business performance," Bussecon Review of Social Sciences (2687-2285), Bussecon International Academy, vol. 2(1), pages 01-12, January.
    14. Cemal Zehir & Mahmut Yavuz, 2014. "A Field Research on Organizational Learning, Crisis Management Capability and Firm Performance," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 3(3), pages 01-17, July.
    15. Ghouri, Arsalan Mujahid & Mani, Venkatesh & Haq, Mirza Amin ul & Kamble, Sachin S., 2022. "The micro foundations of social media use: Artificial intelligence integrated routine model," Journal of Business Research, Elsevier, vol. 144(C), pages 80-92.
    16. Jan-Erik Vahlne & Waheed Akbar Bhatti, 2019. "Relationship Development: A Micro-Foundation for the Internationalization Process of the Multinational Business Enterprise," Management International Review, Springer, vol. 59(2), pages 203-228, April.
    17. Rakesh Gupta & Sriparna Basu, 2014. "Influence of Dimensions of Strategic Orientation on the Growth of Small Firms and Resources as Moderating Variables," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 39(4), pages 461-476, November.
    18. Amoako, Frimpong & Asuamah Yeboah, Samuel, 2023. ""Community Voices in Control: A Systematic Review of Local Representation's Influence on RCB Governance Structure’’," MPRA Paper 118629, University Library of Munich, Germany, revised 10 Sep 2023.

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