Strategy implementation : an assessment of empirical research and suggestions for future research

This Master’s thesis got its inspiration from a few articles from the early 2000s, which questioned senior executives’ understanding of the elements of a strategy statement, which should crystalize the ends, domain and means guiding the business forward. If this was found questionable two decades ago, could the same be valid still? Are businesses lacking in clarity in their strategies, which in turn impedes their implementation? Without a clear goal set by the strategy, how could business make sure, and follow up on, its successful implementation? Through a systematic literature review, this study sheds light on what the level of empirical research done on strategy implementation is. Through an as objective as feasible material selection process, 59 scientific journal articles are identified for final selection review, which then resulted in a total of 38 articles which fit all of the set criteria. The selected articles are classified, and their key findings then summarized. Overall evaluation and results are then compounded from key findings from the reviewed articles, revealing some of the factors identified to be fundamental for successful strategy implementation. The depth and breadth of the reviewed articles was found narrow and varying and the same also applied for the chronological split of the publications, with majority (92%) of the articles having been published in the 21st century. Findings of the empirical studies covered by the articles were drawn from very varying samples, focusing on a dedicated industry, or dedicated cultural or hierarchical domain, etc. Connecting points or reoccurring aspects were also identified. Similar characteristics of the reported aspects were grouped as follows: support and engagement of the upper management; management competencies; knowledge and competencies of the personnel; organization of strategy work; and participation and compensation of the personnel. However, the applicability of the components of a successful strategy implementation would benefit from further empirical validation. The underlying presumption that many companies, whether public or private, may not understand the reasons on failing or lacking strategy implementation was not properly found valid nor invalid, but it rather remains open and allows room for further research. Thus, the study concludes with suggestions for future research.Tämä pro gradu -tutkielma sai kimmokkeensa muutamasta 2000-luvun alussa julkaistusta artikkelista, jotka kyseenalaistivat ylemmän johdon ymmärrystä koskien yrityksen strategiasta annettavan lausunnon merkitystä. Strategiasta annettavan lausunnon tulisi ohjata yrityksen toimintaa kiteyttämällä strategian tavoite, toimialue sekä tapa, jolla tavoitteeseen päästään. Jos johdon ymmärrystä kyseenalaistettiin pari vuosikymmentä sitten, voiko olla, että tämä olettamus pitää edelleen paikkansa? Puuttuuko yrityksiltä strategista selkeyttä, mikä osaltaan haastaa tai jopa estää strategian toimeenpanoa ja toteutusta? Miten yritys varmistaa ja seuraa, että strategian toimeenpano onnistuu linjassa suunnitelmien kanssa, mikäli sen toteutus toimii ilman selkeitä strategian asettamia tavoitteita? Pro gradu -tutkielmaani varten tekemäni systemaattisen tutkimuskatsauksen kautta saamme käsityksen strategian toimeenpanon ja toteuttamisen saralla tehdyn tieteellisen tutkimuksen määrästä, laajuudesta ja syvyydestä. Tutkimusmateriaalin valinta noudattaa mahdollisimman objektiivista valintaprosessia, jonka kautta valintaprosessin viimeiseen karsintavaiheeseen valikoitui yhteensä 59 tieteellistä ja akateemista julkaisua. Näistä tarkempaan tutkimukseen valikoitui yhteensä 38 artikkelia, jotka täyttivät kaikki asetetut hakuvaatimukset. Systemaattisen kirjallisuuskatsauksen kautta valikoidut julkaisut ryhmiteltiin ja tärkeimmät löydökset referoitiin osaksi tutkielmaa. Julkaisuissa raportoiduista ja näistä referoiduista löydöksistä luotiin arvio sekä kirjattiin ylös yhteneviä tekijöitä, joiden tavalla tai toisella nähdään tieteellisissä tutkimuksissa vaikuttavan strategian toimeenpanon ja toteutuksen onnistumiseen tai epäonnistumiseen. Läpikäytyjen julkaisujen laajuus ja syvyys todettiin sekä kapea-alaiseksi että vaihtelevaksi. Lisäksi julkaisujen kronologinen jakauma painottui vahvasti (92 %) julkaisuajankohdan mukaan 2000-luvulle. Julkaisujen kuvaamien empiiristen tutkimusten havainnot tehtiin hyvin vaihtelevista tutkimusotoksista. Otokset keskittyivät vaihtelevasti eri toimialoihin, tiettyyn kulttuurilliseen kontekstiin tai organisatoriseen hierarkiatasoon, jne. Yhteneviä sekä toistuvasti raportoituja tekijöitä oli kuitenkin tunnistettavissa empiiristen tutkimusten tuloksista joko strategian toimeenpanon ja toteutuksen edesauttajina tai heikentäjinä. Löydöksistä tunnistettuja yhteneviä tekijöitä ryhmiteltiin löydösten yhteenvedossa seuraavan mukaan: ylimmän johdon tuki ja sitoutuminen; johdon kompetenssit; henkilöstön tiedot, taidot ja pätevyys; strategiatyön organisointi; sekä henkilöstön osallistuttaminen strategiatyöhön ja heidän palkitsemisensa. Näitä tunnistettuja tekijöitä olisi kuitenkin eduksi validoida kattavammin empiiristen tutkimusten kautta. Taustalla oleva hypoteesia siitä, että monet julkiset tai yksityiset yritykset eivät ehkä ymmärrä syitä strategian toimeenpanon epäonnistumiseen tai puutteelliseen toteutukseen, ei todettu asianmukaisesti päteväksi eikä pätemättömäksi. Hypoteesin oikeellisuus jää täten avoimeksi ja antaa tilaa tulevaisuudessa tehtävälle lisätutkimukselle. Pro gradu -tutkielmani edistää näin ollen akateemista keskustelua nostamalla esiin ehdotuksia lisätutkimuksen tarpeesta sekä näkökulmia tutkimukseen kaivattavista parannuksista

Supply Chain Adaptation of Finnish Companies in Chinese Institutional Environment

Within the last few decades of operations and supply chain management, the field has seen the rise of so called best practices, methods that will help supply chains obtain their business goals and gain a competitive edge. These methods were thought to be universal. This however is not always the case, as the surrounding business environment could have a significant impact on what will be effective in gaining competitive edge. Contingency theory states that the success of a supply chain is determined by both internal capabilities, as well as external context aligning. This creates a strategic fit, which is a major determinant of success. In order for supply chains to reach this strategic fit, they must adapt. As China has seen rapid growth and over the last few decades become one of the major economies of the world, Western companies have tried to establish themselves there, only to find that the Chinese market is extremely difficult to operate in. The aim of this thesis was to investigate from contingency theory perspective, what are the institutional factors that affect supply chain management of Finnish companies operating in China, and how do Finnish companies adapt their supply chains to better fit the Chinese institutional environment. A theoretical model was created for this thesis, in which supply chains possess resources, which can be combined in a meaningful manner to create capabilities. Both resources and capabilities are affected by the surrounding institutional environment, which forces supply chains to adapt in order to find a better strategic fit. A total of six Finnish managers from three large and three small companies operating in China were interviewed. The results indicated that the Chinese business environment is significantly different, than that of Finland or Western countries in general. Three institutional factors were identified: Confucian though, fast-paced business environment, and managing labor force. These three institutional factors made the relationship and delivery capabilities particularly important, as well as human resources, reputation, physical resources and technological resources. In conclusion, it was discovered that the Chinese institutional environment is heavily affected by Confucian thought, as well as the rapid market growth. These are the two most important institutional factors that shape the Chinese market. If supply chains wish to be successful in China, adaptation regarding these two institutional factors should yield good results.siirretty Doriast

Supply Chain Adaptation of Finnish Companies in Chinese Institutional Environment

Within the last few decades of operations and supply chain management, the field has seen the rise of so called best practices, methods that will help supply chains obtain their business goals and gain a competitive edge. These methods were thought to be universal. This however is not always the case, as the surrounding business environment could have a significant impact on what will be effective in gaining competitive edge. Contingency theory states that the success of a supply chain is determined by both internal capabilities, as well as external context aligning. This creates a strategic fit, which is a major determinant of success. In order for supply chains to reach this strategic fit, they must adapt. As China has seen rapid growth and over the last few decades become one of the major economies of the world, Western companies have tried to establish themselves there, only to find that the Chinese market is extremely difficult to operate in. The aim of this thesis was to investigate from contingency theory perspective, what are the institutional factors that affect supply chain management of Finnish companies operating in China, and how do Finnish companies adapt their supply chains to better fit the Chinese institutional environment. A theoretical model was created for this thesis, in which supply chains possess resources, which can be combined in a meaningful manner to create capabilities. Both resources and capabilities are affected by the surrounding institutional environment, which forces supply chains to adapt in order to find a better strategic fit. A total of six Finnish managers from three large and three small companies operating in China were interviewed. The results indicated that the Chinese business environment is significantly different, than that of Finland or Western countries in general. Three institutional factors were identified: Confucian though, fast-paced business environment, and managing labor force. These three institutional factors made the relationship and delivery capabilities particularly important, as well as human resources, reputation, physical resources and technological resources. In conclusion, it was discovered that the Chinese institutional environment is heavily affected by Confucian thought, as well as the rapid market growth. These are the two most important institutional factors that shape the Chinese market. If supply chains wish to be successful in China, adaptation regarding these two institutional factors should yield good results.siirretty Doriast

Strategic Decisions Creation-Implementation (SDCI) process: an empirical study

The aim of this research was to explore empirically how firms create and implement strategic decisions (SD’s). The research was inspired by the need to understand further organizational process underpinning SD’s phenomenon and potentially contribute to the overall performance of firms. Previous research on SD’s has been focusing on the formal strategic planning approaches, which have been criticized for their highly prescriptive views of SD’s, separating creation from implementation, and focusing on the content and discrete elements rather than the holistic process. Despite all these studies, our understanding of the actual nature of the SD phenomenon from creation to implementation remains incomplete. Motivated by the need to look empirically and holistically at this very complex social phenomenon, this research problematizes the above aspects of SD’s literature and positions this research within a wider social and descriptive process based approach. The research employed qualitative and Analytic Induction (AI) methodologies, and addressed the above need in three projects. The objective of each project has evolved and lead to the emergence of the final findings, which suggest a possible answer to the overall research aim. The Scoping Study proposed a theoretical framework of successful SD’s implementation factors. Project 1 went further and investigated these factors empirically. Project 2 developed empirically the process of how people actually create and implement SD’s. In Project 3, this process was analysed through the theoretical lens of the sensemaking perspective and was applied by practitioners through an empirically tested diagnostic tool. This research has made a step towards a better understanding of SD’s in practice and contributed to the academic knowledge by proposing a different, yet viable descriptive process, which can improve the overall quality of the SD’s, and potentially lead to better performance