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Aligning operations, marketing, and competitive strategies to enhance performance: An empirical test in the retail banking industry

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  • Rhee, Munsung
  • Mehra, Satish

Abstract

The close linkage between competitive strategy and functional strategic activities is asserted to be a precondition to the achievement of optimal business performance. This study explores how the relationship between (and among) operations, marketing, and competitive strategies affects organizational performance in the banking industry. Our findings show that: (a) competitive strategy moderates the relationship between operations and marketing strategic activities, and organizational performance, (b) certain integrated strategic decisions of operations and marketing functions have a significant impact on organizational performance, and (c) the performance of retail banks within a strategic group differs depending on the quality of the strategic fit.

Suggested Citation

  • Rhee, Munsung & Mehra, Satish, 2006. "Aligning operations, marketing, and competitive strategies to enhance performance: An empirical test in the retail banking industry," Omega, Elsevier, vol. 34(5), pages 505-515, October.
    • Handle: RePEc:eee:jomega:v:34:y:2006:i:5:p:505-515
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    References listed on IDEAS

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    2. Won Park & Chung-gyu Byun, 2022. "Effect of Managerial Compensation and Ability on the Relationship between Business Strategy and Firm Value: For Small and Medium-Sized Enterprises (SMEs)," Sustainability, MDPI, vol. 14(8), pages 1-32, April.
    3. Travassos Rosário, Albérico & Carrizo Moreira, António & Macedo, Pedro, 2021. "Competitive dynamics of strategic groups in the Portuguese banking industry," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    4. Trkman, Peter, 2010. "The critical success factors of business process management," International Journal of Information Management, Elsevier, vol. 30(2), pages 125-134.
    5. Lindawati Gani & Johnny Jermias, 2012. "The Effects of Strategy–Management Control System Misfits on Firm Performance," Accounting Perspectives, John Wiley & Sons, vol. 11(3), pages 165-196, September.
    6. Santosh B. Rane & Yahya A. M. Narvel, 2021. "Leveraging the industry 4.0 technologies for improving agility of project procurement management processes," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 12(6), pages 1146-1172, December.
    7. Wai Wong & Noor Hazlina Ahmad & Aizzat Mohd. Nasurdin & Marini Mohamad, 2014. "The impact of external environmental on business process management and organizational performance," Service Business, Springer;Pan-Pacific Business Association, vol. 8(4), pages 559-586, December.
    8. Jinhwan Kim & Hyeob Kim & HyukJun Kwon, 2020. "The Impact of Employees’ Perceptions of Strategic Alignment on Sustainability: An Empirical Investigation of Korean Firms," Sustainability, MDPI, vol. 12(10), pages 1-23, May.

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