Warianty tytułu
Języki publikacji
Abstrakty
Objective: Maintaining cohesion of different elements of the organisation is crucial, especially for building effectiveness, implementing a business model and improving performance. The key aim of this article is to analyse the relationship between strategic coherence and a company's performance.
Research Design & Methods: Strategic coherence is the author's concept allowing measurement of vertical and horizontal adjustment of a business entity. Vertical adjustment describes the fit of the elements of the business model to the company strategy. This is captured by following measurements: 1) how a company's goals are cascaded, 2) what is the feedback in terms of the cohesion of the components of the business model with its strategy and 3) how the control process of strategy implementation and financial outcome are organised. Horizontal adjustment covers the phenomenon of a business model's cohesion. It measures: 1) how customer value is created, 2) how value is attained by a business and 3) how a synergy effect is created within an organisation. In total, 400 medium and large sized companies were researched.
Findings: Based on the survey results companies have similar levels of strategic coherence in both horizontal (6.29) and vertical (6.47) dimensions (in a 1.00-10.00 scale). In general it is confirmed that the higher the strategic coherence level is, the higher the profit, the competitive advantage, and other analysed figures.
Implications / Recommendations: Achieving a higher level of coherence should improve integration between strategic goals, actions taken to implement them, and cohesion of business model components. A critical issue is creating the ability to identify the essential elements of strategy, and on their basis reconcile competing or conflicting ideas and paths of development more coherently than other organisations. However, pushing towards total coherency can cause some imbalance between the longterm and short-term results of the firm.
Contribution: This article provides a unique insight into how strategic coherence is shaped in a two dimensional perspective - vertical and horizontal adjustment. In addition, it introduces guidelines for improving the strategic coherence of companies in terms of improving performance. (original abstract)
Research Design & Methods: Strategic coherence is the author's concept allowing measurement of vertical and horizontal adjustment of a business entity. Vertical adjustment describes the fit of the elements of the business model to the company strategy. This is captured by following measurements: 1) how a company's goals are cascaded, 2) what is the feedback in terms of the cohesion of the components of the business model with its strategy and 3) how the control process of strategy implementation and financial outcome are organised. Horizontal adjustment covers the phenomenon of a business model's cohesion. It measures: 1) how customer value is created, 2) how value is attained by a business and 3) how a synergy effect is created within an organisation. In total, 400 medium and large sized companies were researched.
Findings: Based on the survey results companies have similar levels of strategic coherence in both horizontal (6.29) and vertical (6.47) dimensions (in a 1.00-10.00 scale). In general it is confirmed that the higher the strategic coherence level is, the higher the profit, the competitive advantage, and other analysed figures.
Implications / Recommendations: Achieving a higher level of coherence should improve integration between strategic goals, actions taken to implement them, and cohesion of business model components. A critical issue is creating the ability to identify the essential elements of strategy, and on their basis reconcile competing or conflicting ideas and paths of development more coherently than other organisations. However, pushing towards total coherency can cause some imbalance between the longterm and short-term results of the firm.
Contribution: This article provides a unique insight into how strategic coherence is shaped in a two dimensional perspective - vertical and horizontal adjustment. In addition, it introduces guidelines for improving the strategic coherence of companies in terms of improving performance. (original abstract)
Słowa kluczowe
Rocznik
Numer
Strony
83--96
Opis fizyczny
Twórcy
autor
- Poznan University of Business and Economics, Poland
Bibliografia
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- Brettel, M., Strese, S., & Flatten, T. C. (2012). Improving the Performance of Business Models with Relationship Marketing Efforts - an Entrepreneurial Perspective. European Management Journal, 30(2), 85-98. http://doi.org/10.1016/j.emj.2011.11.003
- Chybalski, F., & Matejun, M. (2013). Organizacja jako obiekt badań od zbierania danych do analizy wyników. In: A. Adamik (Ed.), Nauka o organizacji. Ujęcie dynamiczne(pp. 93-151). Oficyna Wolters Kluwer.
- Demil, B., & Lecocq, X. (2010). Business Model Evolution: In Search of Dynamic Con-sistency. Long Range Planning, 43(2-3), 227-246. https://doi.org/10.1016/j.lrp.2010.02.004
- Falencikowski, T. (2013). Spójność modeli biznesu. Koncepcja i pomiar. CeD eWu.
- Gadomska-Lila, K. (2013). Dopasowanie organizacyjne. Aspekty strategii, kultury organizacyjnej i zarządzania zasobami ludzkimi. Difin.
- Galbraith, J. R. (1997). Organisation Design. Addison-Wesley.
- GUS. (2007). Polish Classification of Activity PKD 2007. Retrieved from: https://stat.gov.pl/Klasyfikacje/doc/pkd_07/pkd_07.htm (accessed: 17.08.2022).
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- Kathuria, P., Joshi, M. P., & Porth, S. J. (2007). Organizational Alignment and Performance: Past, Present and Future. Management Decision, 45(3), 503-517. http://doi.org/ 10.1108/00251740710745106
- Kathuria, R. G. (2010). Coherent Strategy and Execution an Eyeopening Parable about Transforming Leadership and Management Perspectives? SeemaCorp.
- Khodaei, H., & Ortt, R. (2019). Capturing Dynamics in Business Model Frameworks. Journal of Open Innovation: Technology, Market, and Complexity, 5(1), Article 8. http://doi.org/10.3390/joitmc5010008
- Koźmiński, A. K. (2004). Zarządzanie w warunkach niepewności: podręcznik dla zaawansowanych. Wydawnictwo Naukowe PWN.
- Leinwand, P., & Mainardi, C. (2010). The Coherence Premium. Harvard Business Review, 6.
- Lissack, M., & Roos, J. (2001). Be Coherent, Not Visionary. Long Range Planning, 34(1), 53-70. http://doi.org/10.1016/S0024-6301(00)00093-5
- Mielcarek, P. (2021). Strategic Coherence and Process Maturity in the Context of Company Ambidextrousness. C.H. Beck.
- Morris, M., Schindehutte, S., & Allen, J. (2005). The Entrepreneur's Business Model: Toward a Unified Perspective. Journal of Business Research, 58(6), 726-735. https://doi.org/ 10.1016/j.jbusres.20 03.11.0 01
- Nath, D., & Sudharshan, D. (1994). Measuring Strategy Coherence through Patterns of Stra-tegic Choices. Strategic Management Journal, 15(1), 43-61. https://doi.org/10.1002/smj.4250150104
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- Sundheim, D. (2014). Jak zasypać przepaść między tworzeniem strategii a jej realizacją. Harvard Business Review Polska, July-August.
- Venkatraman, N., & Camillus, J. C. (1984). Exploring the Concept of "Fit" in Strategic Management. Academy of Management Review, 9(3), 513-525. https://doi.org/10.5465/amr. 1984.4279696
- Verweire, K. (2014). Strategy Implementation. Routledge.
- Xu, S., Cavusgil, T., & White, J. C. (2006). The Impact of Strategic Fit among Strategy, Structure, and Processes on Multinational Corporation Performance: A Multimethod Assessment. Journal of International Marketing, 14(2), 1-31. http://doi.org/10.1509/jimk.14.2.1
- Zakrzewska-Bielawska, A. (2018). Strategie rozwoju przedsiębiorstwa. Nowe spojrzenie. PWE.
- Zott, C., & Amit, R. (2007). Business Model Design and the Performance of Entrepreneurial Firms. Organization Science, 18(2), 181-199. https://doi.org/10.1287/orsc.1060.0232
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171688470
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