IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v4y2024i6d10.1007_s43546-024-00649-y.html
   My bibliography  Save this article

Corporate strategy evaluation (CORE): a new method to measure strategies in organizations

Author

Listed:
  • Jheyce Milena Silva Barros

    (Federal Rural University of Pernambuco)

  • Brigitte Renata Bezerra Oliveira

    (Federal Rural University of Pernambuco)

  • Telma Lúcia Andrade Lima

    (Federal Rural University of Pernambuco)

  • Marcos Felipe Falcão Sobral

    (Universidade Federal Rural de Pernambuco)

Abstract

In response to challenges and constraints within the market, companies frequently embrace corporate strategies and collaborate with other entities to amplify their impact on the market and respond to market threats and limitations, seeking synergy with other companies to increase their market. The adequate adoption of corporate strategies is fundamental for the success of organizations. Despite the importance of strategies, there is no specific procedure for identifying and measuring corporate strategies, and this article introduces a novel method for measuring corporate strategies named CORE: Corporate Strategy Evaluation. The design of the (CORE) started with a systematic literature review, adopting the PRISMA methodology. Five dimension questions were constructed: vertical integration, alliances, mergers, acquisitions, and diversification. Then, aggregation and sensitivity analysis procedures were created. The proposed method was experimentally evaluated in two scenarios with random data to test it. This study aims to enhance decision accuracy and strategic identification through a two-step process. Firstly, diagnostic questions are employed in step 1 to ascertain a company's adoption of a corporate strategy, leading to step 2. This method bringing a new way to mediate corporate strategies, analyze the behavior of companies over time, compare companies in the same segment, compare companies from different elements, identify patterns of strategy, enable future crossings between strategies and variables such as performance, risk, and also with other levels of strategy.

Suggested Citation

  • Jheyce Milena Silva Barros & Brigitte Renata Bezerra Oliveira & Telma Lúcia Andrade Lima & Marcos Felipe Falcão Sobral, 2024. "Corporate strategy evaluation (CORE): a new method to measure strategies in organizations," SN Business & Economics, Springer, vol. 4(6), pages 1-18, June.
    • Handle: RePEc:spr:snbeco:v:4:y:2024:i:6:d:10.1007_s43546-024-00649-y
    DOI: 10.1007/s43546-024-00649-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-024-00649-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43546-024-00649-y?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chen Zheng & Henry Tsai, 2019. "The moderating effect of board size on the relationship between diversification and tourism firm performance," Tourism Economics, , vol. 25(7), pages 1084-1104, November.
    2. Agyei-Boapeah, Henry, 2019. "Foreign acquisitions and firm performance: The moderating role of prior foreign experience," Global Finance Journal, Elsevier, vol. 42(C).
    3. Abdul Rashid & Nazia Naeem, 2017. "Effects of mergers on corporate performance: An empirical evaluation using OLS and the empirical Bayesian methods," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 17(1), pages 10-24, March.
    4. Thomas Hutzschenreuter & Florian Gröne, 2009. "Product and geographic scope changes of multinational enterprises in response to international competition," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(7), pages 1149-1170, September.
    5. Garg, Chandra Prakash, 2016. "A robust hybrid decision model for evaluation and selection of the strategic alliance partner in the airline industry," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 55-66.
    6. Mikko Ketokivi & Joseph T. Mahoney, 2020. "Transaction Cost Economics As a Theory of Supply Chain Efficiency," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 1011-1031, April.
    7. Min, Hokey & Joo, Seong-Jong, 2016. "A comparative performance analysis of airline strategic alliances using data envelopment analysis," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 99-110.
    8. Shan Xu & Duchi Liu, 2017. "Corporate social responsibility (CSR) and corporate diversification: do diversified production firms invest more in CSR?," Applied Economics Letters, Taylor & Francis Journals, vol. 24(4), pages 254-257, February.
    9. Jing Xiao & Ron Boschma & Martin Andersson, 2018. "Industrial Diversification in Europe: The Differentiated Role of Relatedness," Economic Geography, Taylor & Francis Journals, vol. 94(5), pages 514-549, October.
    10. Jensen, Michael C. & Ruback, Richard S., 1983. "The market for corporate control : The scientific evidence," Journal of Financial Economics, Elsevier, vol. 11(1-4), pages 5-50, April.
    11. Jurich, Stephen N. & Walker, M. Mark, 2019. "What drives merger outcomes?," The North American Journal of Economics and Finance, Elsevier, vol. 48(C), pages 757-775.
    12. H. Kurt Christensen & Cynthia A. Montgomery, 1981. "Corporate economic performance: Diversification strategy versus market structure," Strategic Management Journal, Wiley Blackwell, vol. 2(4), pages 327-343, October.
    13. Tyson B. Mackey & Jay B. Barney & Jeffrey P. Dotson, 2017. "Corporate diversification and the value of individual firms: A Bayesian approach," Strategic Management Journal, Wiley Blackwell, vol. 38(2), pages 322-341, February.
    14. David H. Zhu & James D. Westphal, 2021. "Structural power, corporate strategy, and performance," Strategic Management Journal, Wiley Blackwell, vol. 42(3), pages 624-651, March.
    15. Jiawei Wu & Yehua Dennis Wei & Wen Chen, 2020. "Spatial proximity, localized assets, and the changing geography of domestic mergers and acquisitions in transitional China," Growth and Change, Wiley Blackwell, vol. 51(3), pages 954-976, September.
    16. Aric Rindfleisch, 2020. "Transaction cost theory: past, present and future," AMS Review, Springer;Academy of Marketing Science, vol. 10(1), pages 85-97, June.
    17. Cornelius Hafner, 2021. "Diversification in family firms: a systematic review of product and international diversification strategies," Review of Managerial Science, Springer, vol. 15(3), pages 529-572, April.
    18. Francesco Parola & Giovanni Satta & Photis M Panayides, 2015. "Corporate strategies and profitability of maritime logistics firms," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 17(1), pages 52-78, March.
    19. Dumitru-Alexandru BODISLAV & Florina BRAN & Mariana IOVI?U, 2014. "Managing Corporate Strategy from the Expansion Perspective," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(5), pages 566-572, December.
    20. Derek Lehmberg, 2015. "Do Japanese electronics firms still follow traditional vertical integration strategies? Evidence from the liquid crystal display industry," Asia Pacific Business Review, Taylor & Francis Journals, vol. 21(3), pages 311-332, July.
    21. Scott, James H, Jr, 1977. "On the Theory of Conglomerate Mergers," Journal of Finance, American Finance Association, vol. 32(4), pages 1235-1250, September.
    22. Ritesh Patel, 2018. "Pre & Post-Merger Financial Performance: An Indian Perspective," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 7(3), pages 181-200.
    23. Goknur Arzu Akyuz & Guner Gursoy, 2020. "Strategic management perspectives on supply chain," Management Review Quarterly, Springer, vol. 70(2), pages 213-241, May.
    24. Bruce Kogut, 1991. "Joint Ventures and the Option to Expand and Acquire," Management Science, INFORMS, vol. 37(1), pages 19-33, January.
    25. Minjung Kim, 2015. "The effect of strategic alliances on firm productivity in South Korea," Applied Economics, Taylor & Francis Journals, vol. 47(47), pages 5034-5044, October.
    26. Ljubownikow, Grigorij & Ang, Siah Hwee, 2020. "Competition, diversification and performance," Journal of Business Research, Elsevier, vol. 112(C), pages 81-94.
    27. Effnu Subiyanto, 2020. "A failure innovation strategy of acquisition during excess capacity: financial approach based on case study at the state-owned cement holding PT Semen Indonesia (Persero) Tbk," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-14, December.
    28. Ranka Krivokapic & Vladimir Njegomir & Dragan Stojic, 2017. "Effects of corporate diversification on firm performance: evidence from the Serbian insurance industry," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 30(1), pages 1224-1236, January.
    29. Sandro Montresor & Francesco Quatraro, 2017. "Regional Branching and Key Enabling Technologies: Evidence from European Patent Data," Economic Geography, Taylor & Francis Journals, vol. 93(4), pages 367-396, August.
    30. Nigel Wadeson, 2017. "Profit-Maximising Rigid Prices and Vertical Integration," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 24(1), pages 53-72, January.
    31. Jiyun Cao & Arijit Mukherjee & Uday Bhanu Sinha, 2020. "The implications of labour unions in the presence of a merger," Manchester School, University of Manchester, vol. 88(4), pages 575-583, July.
    32. Michael W. Hansen & Thilde Langevang & Lettice Rutashobya & Goodluck Urassa, 2018. "Coping with the African Business Environment: Enterprise Strategy in Response to Institutional Uncertainty in Tanzania," Journal of African Business, Taylor & Francis Journals, vol. 19(1), pages 1-26, January.
    33. Schierstedt, Bennet & Henn, Marisa & Lutz, Eva, 2020. "Diversified acquisitions in family firms: Restricted vs. extended family priorities," Journal of Family Business Strategy, Elsevier, vol. 11(2).
    34. Ana Espínola-Arredondo & Felix Munoz-Garcia & Ae Rin Jung, 2020. "Organic Mergers and Acquisitions," Journal of Industry, Competition and Trade, Springer, vol. 20(1), pages 59-91, March.
    35. Kyung Ho Kang & Seoki Lee, 2015. "Effects of Diversification Strategies on US Restaurant Firms' Performance," Tourism Economics, , vol. 21(4), pages 807-831, August.
    36. repec:eme:mfppss:mf-11-2019-0589 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ljubownikow, Grigorij & Ang, Siah Hwee, 2020. "Competition, diversification and performance," Journal of Business Research, Elsevier, vol. 112(C), pages 81-94.
    2. Askarany, Davood & Spraakman, Gary, 2020. "Regional diversification and financial performance through an excess-capacity theory lens: A new explanation for mixed results," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    3. Kathryn Rudie Harrigan & Maria Chiara Guardo & Bo Cowgill, 2017. "Multiplicative-innovation synergies: tests in technological acquisitions," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1212-1233, October.
    4. Stienstra, Miranda, 2020. "The determinants and performance implications of alliance partner acquisition," Other publications TiSEM 7fdee0c2-d4d2-4f5b-95e3-2, Tilburg University, School of Economics and Management.
    5. Quatraro, Francesco & Scandura, Alessandra, 2020. "Regional patterns of unrelated technological diversification: the role of academic inventors," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 202001, University of Turin.
    6. Ying Li & Tai‐Yu Lin & Yung‐ho Chiu & Shu‐Ning Lin & Tzu‐Han Chang, 2021. "Impact of alliances and delay rate on airline performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1607-1618, September.
    7. Hafner, Cornelius & Pidun, Ulrich, 2022. "Getting family firm diversification right: A configurational perspective on product and international diversification strategies," Journal of Family Business Strategy, Elsevier, vol. 13(1).
    8. Cynthia A. Montgomery, 1994. "Corporate Diversificaton," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 163-178, Summer.
    9. Ali Uyar & Mehmet Ali Koseoglu & Cemil Kuzey & Abdullah S Karaman, 2023. "Does firm strategy influence corporate social responsibility and firm performance? Evidence from the tourism industry," Tourism Economics, , vol. 29(5), pages 1272-1301, August.
    10. Evans Opoku‐Mensah & Yuming Yin & Sandra Chukwudumebi Obiora & Peter Adjei Darko, 2022. "Grabbing hand or helping hand? Ownership interventions and acquirers returns; the role of provincial idiosyncrasies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 4797-4815, October.
    11. Lee, Hyunmin, 2023. "Strategic similarity in the co-evolution of technological and business diversification for firm growth: Evidence from smart-manufacturing related firms," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    12. Jorge Tarziján M & José Rivera, 2000. "Reasons For Conglomeration: Empirical Analysis Of Management Responses In Chile," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 3(2), pages 203-226.
    13. Flávio L. Pinheiro & Aamena Alshamsi & Dominik Hartmann & Ron Boschma & César Hidalgo, 2018. "Shooting Low or High: Do Countries Benefit from Entering Unrelated Activities?," Papers in Evolutionary Economic Geography (PEEG) 1807, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2018.
    14. Pinheiro, Flávio L. & Hartmann, Dominik & Boschma, Ron & Hidalgo, César A., 2022. "The time and frequency of unrelated diversification," Research Policy, Elsevier, vol. 51(8).
    15. Klaus S. Friesenbichler & Andreas Reinstaller, 2023. "Small and internationalized firms competing with Chinese exporters," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(1), pages 167-192, March.
    16. Anastasios KARAMANOS & George BAKATSELOS & Roena AGOLLI, 2015. "Abnormal Stock Market Returns to Announcements of M&A Banking Deals in Greece 1996-2013," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 3(2), pages 317-338, June.
    17. Fulvio Castellacci & Davide Consoli & Artur Santoalha, 2018. "Technological Diversification in European Regions: The Role of E-skills," Working Papers on Innovation Studies 20181009, Centre for Technology, Innovation and Culture, University of Oslo.
    18. Jorge Tarziján M, 1999. "Internal Capital Markets And Multimarket Contact As Explanations For Conglomerates In Emerging Markets," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 2(1), pages 3-22.
    19. Ron Boschma, 2018. "The geographical dimension of structural change," Papers in Evolutionary Economic Geography (PEEG) 1839, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2018.
    20. Lin, Boqiang & Wang, Siquan, 2023. "The performance of specialized and oriented diversified firms: A comparative analysis from the targeted expansion of renewable energy business of listed companies," International Review of Financial Analysis, Elsevier, vol. 89(C).

    More about this item

    Keywords

    Corporate strategy; Strategy; Measurement model; CORE method;
    All these keywords.

    JEL classification:

    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

    Statistics

    Access and download statistics

    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:spr:snbeco:v:4:y:2024:i:6:d:10.1007_s43546-024-00649-y. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.