IDEAS home Printed from https://ideas.repec.org/p/tsa/wpaper/0078mgt.html
   My bibliography  Save this paper

New Strategy Implementation and Learning: Importance of Consensus

Author

Listed:
  • Katsuhiko Shimizu

    (University of Texas at San Antonio)

Abstract

This study examines the effects of consensus and resulting organizational learning on new strategy implementation. In doing so, we consider two challenges inherent in implementing new strategy: breaking and reestablishing organizational and individual routines and managing uncertainties and unexpected problems. By sampling 113 groups within a large company, we found that group performance can be lowest when consensus on strategy contents is medium (U-shape relationship between group consensus on strategy contents and group performance). We also found that the consensus on strategy contents – performance relationship is moderated by consensus on strategy implementation progress.

Suggested Citation

  • Katsuhiko Shimizu, 2008. "New Strategy Implementation and Learning: Importance of Consensus," Working Papers 0034, College of Business, University of Texas at San Antonio.
    • Handle: RePEc:tsa:wpaper:0078mgt
    as

    Download full text from publisher

    File URL: http://interim.business.utsa.edu/wps/mgt/0034MGT-110-2008.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sydney Finkelstein & Jerayr Haleblian, 2002. "Understanding Acquisition Performance: The Role of Transfer Effects," Organization Science, INFORMS, vol. 13(1), pages 36-47, February.
    2. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    3. Anita L. Tucker & Ingrid M. Nembhard & Amy C. Edmondson, 2007. "Implementing New Practices: An Empirical Study of Organizational Learning in Hospital Intensive Care Units," Management Science, INFORMS, vol. 53(6), pages 894-907, June.
    4. Christian Homburg & Harley Krohmer & John P. Workman. Jr, 1999. "Strategic consensus and performance: the role of strategy type and market‐related dynamism," Strategic Management Journal, Wiley Blackwell, vol. 20(4), pages 339-357, April.
    5. Jerker Denrell & James G. March, 2001. "Adaptation as Information Restriction: The Hot Stove Effect," Organization Science, INFORMS, vol. 12(5), pages 523-538, October.
    6. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    7. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    8. Lívia Markóczy, 2001. "Consensus formation during strategic change," Strategic Management Journal, Wiley Blackwell, vol. 22(11), pages 1013-1031, November.
    9. Prashant Kale & Harbir Singh, 2007. "Building firm capabilities through learning: the role of the alliance learning process in alliance capability and firm‐level alliance success," Strategic Management Journal, Wiley Blackwell, vol. 28(10), pages 981-1000, October.
    10. Robert Simons, 1994. "How new top managers use control systems as levers of strategic renewal," Strategic Management Journal, Wiley Blackwell, vol. 15(3), pages 169-189, March.
    11. Bill Wooldridge & Steven W. Floyd, 1990. "The strategy process, middle management involvement, and organizational performance," Strategic Management Journal, Wiley Blackwell, vol. 11(3), pages 231-241, March.
    12. Amy C. Edmondson, 2002. "The Local and Variegated Nature of Learning in Organizations: A Group-Level Perspective," Organization Science, INFORMS, vol. 13(2), pages 128-146, April.
    13. L. J. Bourgeois, 1980. "Performance and consensus," Strategic Management Journal, Wiley Blackwell, vol. 1(3), pages 227-248, July.
    14. William D. Guth & Ian C. Macmillan, 1986. "Strategy implementation versus middle management self‐interest," Strategic Management Journal, Wiley Blackwell, vol. 7(4), pages 313-327, July.
    15. Gregory G. Dess, 1987. "Consensus on strategy formulation and organizational performance: Competitors in a fragmented industry," Strategic Management Journal, Wiley Blackwell, vol. 8(3), pages 259-277, May.
    16. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    17. Gary P. Pisano & Richard M.J. Bohmer & Amy C. Edmondson, 2001. "Organizational Differences in Rates of Learning: Evidence from the Adoption of Minimally Invasive Cardiac Surgery," Management Science, INFORMS, vol. 47(6), pages 752-768, June.
    18. Martine R. Haas & Morten T. Hansen, 2005. "When using knowledge can hurt performance: the value of organizational capabilities in a management consulting company," Strategic Management Journal, Wiley Blackwell, vol. 26(1), pages 1-24, January.
    19. Noble, Charles H., 1999. "The Eclectic Roots of Strategy Implementation Research," Journal of Business Research, Elsevier, vol. 45(2), pages 119-134, June.
    20. C. Marlene Fiol, 1994. "Consensus, Diversity, and Learning in Organizations," Organization Science, INFORMS, vol. 5(3), pages 403-420, August.
    21. Michael Goold & John J. Quinn, 1990. "The paradox of strategic controls," Strategic Management Journal, Wiley Blackwell, vol. 11(1), pages 43-57, January.
    22. Jay B. Barney & Edward J. Zajac, 1994. "Competitive Organizational Behavior: Toward an Organizationally‐Based Theory of Competitive Advantage," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 5-9, December.
    23. Robert A. Burgelman, 1983. "Corporate Entrepreneurship and Strategic Management: Insights from a Process Study," Management Science, INFORMS, vol. 29(12), pages 1349-1364, December.
    24. Paul C. Nutt, 1989. "Selecting tactics to implement strategic plans," Strategic Management Journal, Wiley Blackwell, vol. 10(2), pages 145-161, March.
    25. John Seely Brown & Paul Duguid, 1991. "Organizational Learning and Communities-of-Practice: Toward a Unified View of Working, Learning, and Innovation," Organization Science, INFORMS, vol. 2(1), pages 40-57, February.
    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. Mark D. Ecker & Victor De Oliveira, 2007. "Bayesian Spatial Modeling of Housing Prices Subject to a Localized Externality," Working Papers 0030, College of Business, University of Texas at San Antonio.
    2. Linda Argote & Ella Miron-Spektor, 2011. "Organizational Learning: From Experience to Knowledge," Organization Science, INFORMS, vol. 22(5), pages 1123-1137, October.
    3. Ulrich Lichtenthaler & Eckhard Lichtenthaler, 2009. "A Capability‐Based Framework for Open Innovation: Complementing Absorptive Capacity," Journal of Management Studies, Wiley Blackwell, vol. 46(8), pages 1315-1338, December.
    4. Koen H. Heimeriks & Geert Duysters, 2007. "Alliance Capability as a Mediator Between Experience and Alliance Performance: An Empirical Investigation into the Alliance Capability Development Process," Journal of Management Studies, Wiley Blackwell, vol. 44(1), pages 25-49, January.
    5. Agulles, Remei & Prats, Mª Julia, 2011. "Learning in practice: What organizational and management literature can contribute to professional and occupational development," IESE Research Papers D/938, IESE Business School.
    6. Rapert, Molly Inhofe & Velliquette, Anne & Garretson, Judith A., 2002. "The strategic implementation process: evoking strategic consensus through communication," Journal of Business Research, Elsevier, vol. 55(4), pages 301-310, April.
    7. Tarakci, M. & Ates, N.Y. & Porck, J.P. & van Knippenberg, D.L. & Groenen, P.J.F. & de Haas, M., 2011. "Testing and Visualizing Strategic Consensus Within and Between Teams," ERIM Report Series Research in Management ERS-2011-015-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    8. Heimeriks, K. & Duysters, G.M., 2004. "A study into the alliance capability development process," Working Papers 04.21, Eindhoven Center for Innovation Studies.
    9. Anja Trichterborn & Dodo Zu Knyphausen-Aufseß & Lars Schweizer, 2016. "How to improve acquisition performance: The role of a dedicated M&A function, M&A learning process, and M&A capability," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 763-773, April.
    10. Arumugam, V. & Antony, Jiju & Kumar, Maneesh, 2013. "Linking learning and knowledge creation to project success in Six Sigma projects: An empirical investigation," International Journal of Production Economics, Elsevier, vol. 141(1), pages 388-402.
    11. Christopher B. Bingham & Koen H. Heimeriks & Mario Schijven & Stephen Gates, 2015. "Concurrent learning: How firms develop multiple dynamic capabilities in parallel," Strategic Management Journal, Wiley Blackwell, vol. 36(12), pages 1802-1825, December.
    12. Tammy E. Beck & Donde Ashmos Plowman, 2009. "Experiencing Rare and Unusual Events Richly: The Role of Middle Managers in Animating and Guiding Organizational Interpretation," Organization Science, INFORMS, vol. 20(5), pages 909-924, October.
    13. Xiao Zhang & Luqun Xie & Jiatao Li & Li Cheng, 2022. "“Outside in”: Global demand heterogeneity and dynamic capabilities of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 709-722, June.
    14. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    15. Maurizio Zollo, 2009. "Superstitious Learning with Rare Strategic Decisions: Theory and Evidence from Corporate Acquisitions," Organization Science, INFORMS, vol. 20(5), pages 894-908, October.
    16. Giovanni. Gavetti & Daniel A. Levinthal, 2004. "50th Anniversay Article: The Strategy Field from the Perspective of Management Science: Divergent Strands and Possible Integration," Management Science, INFORMS, vol. 50(10), pages 1309-1318, October.
    17. Kavusan, K., 2015. "Essays on capability development through alliances," Other publications TiSEM 8eb736a5-b217-4718-ac13-d, Tilburg University, School of Economics and Management.
    18. Li Zuo & Gregory J. Fisher & Zhi Yang, 2019. "Organizational learning and technological innovation: the distinct dimensions of novelty and meaningfulness that impact firm performance," Journal of the Academy of Marketing Science, Springer, vol. 47(6), pages 1166-1183, November.
    19. Shaker A. Zahra & Anders P. Nielsen & William C. Bogner, 1999. "Corporate Entrepreneurship, Knowledge, and Competence Development," Entrepreneurship Theory and Practice, , vol. 23(3), pages 169-189, April.
    20. Andrea Furlan & Ambra Galeazzo & Adriano Paggiaro, 2019. "Organizational and Perceived Learning in the Workplace: A Multilevel Perspective on Employees’ Problem Solving," Organization Science, INFORMS, vol. 30(2), pages 280-297, March.

    More about this item

    Keywords

    effects of consensus; breaking and reestablishing organizational and individual routines and managing uncertainties and unexpected problems;

    JEL classification:

    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

    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:tsa:wpaper:0078mgt. 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: Wendy Frost (email available below). General contact details of provider: https://edirc.repec.org/data/cbutsus.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.