IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v33y1987i9p1087-1101.html
   My bibliography  Save this article

Risk and the Relationship Among Strategy, Organizational Processes, and Performance

Author

Listed:
  • David B. Jemison

    (Graduate School of Business, Stanford University, Stanford, California 94305)

Abstract

Performance is an important variable in strategic management research. But, although managers must deal with performance on two dimensions, its level (return) and the variation in that level (risk), performance has traditionally been studied only in terms of return. This paper reports the results of a study of business strategy content and processes where performance was operationalized as both return and risk. In a field study of 20 firms in the banking industry in one state, different strategies were found to be associated with differences in risk but not in return. The effects of processes on performance were varied; some processes were associated with risk only, some with return only, and others with both risk and return. These results suggest that the relationships among strategy, processes and performance are more complex than most researchers have acknowledged. Further theoretical and managerial insights may be gained into these relationships if risk is included as a dimension of performance in strategic management research.

Suggested Citation

  • David B. Jemison, 1987. "Risk and the Relationship Among Strategy, Organizational Processes, and Performance," Management Science, INFORMS, vol. 33(9), pages 1087-1101, September.
    • Handle: RePEc:inm:ormnsc:v:33:y:1987:i:9:p:1087-1101
    DOI: 10.1287/mnsc.33.9.1087
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.33.9.1087
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.33.9.1087?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Srilata A. Zaheer, "undated". "Acceptable Risk: A Study of Global Currency Trading Rooms in the US and Japan," Center for Financial Institutions Working Papers 97-22, Wharton School Center for Financial Institutions, University of Pennsylvania.
    2. Johannes M. Lehner, 2000. "Shifts of Reference Points for Framing of Strategic Decisions and Changing Risk-Return Associations," Management Science, INFORMS, vol. 46(1), pages 63-76, January.
    3. Elango, B., 2010. "Influence of industry type on the relationship between international operations and risk," Journal of Business Research, Elsevier, vol. 63(3), pages 303-309, March.
    4. Ranjan Das Gupta & Rajesh Pathak, 2018. "Firm’s Risk-Return Association Facets and Prospect Theory Findings—An Emerging versus Developed Country Context," Risks, MDPI, vol. 6(4), pages 1-32, December.
    5. Gerrit Kok & Cornelis H. van Schalkwyk & Elda Du Toit, 2021. "The association between board characteristics and the risk-adjusted return of South African companies," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(1), pages 58-70, March.
    6. Palich, Leslie E. & Carini, Gary R. & Seaman, Samuel L., 2000. "The Impact of Internationalization on the Diversification-Performance Relationship: A Replication and Extension of Prior Research," Journal of Business Research, Elsevier, vol. 48(1), pages 43-54, April.
    7. Volker Wiemann & Thomas Mellewigt, 1998. "Das Risiko-Rendite Paradoxon. Stand der Forschung und Ergebnisse einer empirischen Untersuchung," Schmalenbach Journal of Business Research, Springer, vol. 50(6), pages 551-572, June.
    8. Henkel, Joachim, 2007. "The Risk-Return Paradox for Strategic Management: Disentangling True and Spurious Effects," CEPR Discussion Papers 6538, C.E.P.R. Discussion Papers.
    9. William Percy & Kevin Dow, 2021. "The Coaching Black Box: Risk Mitigation during Change Management," JRFM, MDPI, vol. 14(8), pages 1-18, July.
    10. Veliyath, Rajaram & Ferris, Stephen P., 1997. "Agency influences on risk reduction and operating performance: An empirical investigation among strategic groups," Journal of Business Research, Elsevier, vol. 39(3), pages 219-230, July.
    11. M. Díaz-Fernández & M. González-Rodríguez & Biagio Simonetti, 2015. "Top Management Teams’ demographic characteristics and their influence on strategic change," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(3), pages 1305-1322, May.
    12. Gupta, A. & Chen, I. J. & Chiang, D., 1997. "Determining organizational structure choices in advanced manufacturing technology management," Omega, Elsevier, vol. 25(5), pages 511-521, October.
    13. DRAGHICI, Dalis Maria, 2021. "Implementing Quantitative Techniques In Assessing The Risk Attitudes," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 25(2), pages 64-78, June.
    14. Wright, Peter & Mukherji, Ananda & Kroll, Mark J., 2001. "A reexamination of agency theory assumptions: extensions and extrapolations," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 30(5), pages 413-429.
    15. Leenders, Roger Th.A.J. & Gabbay, Shaul M. & Fiegenbaum, Avi, 2001. "Corporate social capital and strategic management paradigm: a contingency view on organizational performance," Research Report 01B63, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    16. repec:dgr:rugsom:01b63 is not listed on IDEAS
    17. Amulya Gurtu & Jestin Johny, 2021. "Supply Chain Risk Management: Literature Review," Risks, MDPI, vol. 9(1), pages 1-16, January.
    18. Farrukh Mahmood & Robert M. Kunst, 2023. "Modeling nonlinear in Bowman’s paradox: the case of Pakistan," Empirical Economics, Springer, vol. 64(5), pages 2357-2372, May.
    19. Zhao, Chunfu & Chen, Bin, 2014. "China’s oil security from the supply chain perspective: A review," Applied Energy, Elsevier, vol. 136(C), pages 269-279.
    20. Wright, Peter & Kroll, Mark & Pray, Bevalee & Lado, Augustine, 1995. "Strategic orientations, competitive advantage, and business performance," Journal of Business Research, Elsevier, vol. 33(2), pages 143-151, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:33:y:1987:i:9:p:1087-1101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.