143 research outputs found

    Balanced scorecard and hoshin kanri: dynamic capabilities for managing strategic fit

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    Purpose - The paper seeks to combine the uses of the balanced scorecard and hoshin kanri as integrative dynamic capabilities for the entire strategic management process. It aims to posit a model for the combination of these long- and short-term organisational activities as a framework for a senior level to manage a firm's strategic fit as an integrated organisation-wide system that links top management goals to daily management. Design/rnethodology/approach - The resource-based view of strategy is explored for its relevance to how a combined balanced scorecard and hoshin kanri approach serves as a high-order dynamic capability. Examples are given from Canon, Toyota and Nissan, of how core capabilities are managed to show how strategy is executed cross-functionally across a firm's functional hierarchy. Findings - The study finds that strategic management of the organisation should consider the long-term strategy as well as the short-term capability. Important to this are core capabilities and core competences, cross-functional management, and top executive audits, which, when managed properly, explicate a new view of strategic fit, as a form of nested hierarchies of dynamic capabilities. Originality/value - The paper is the first exposition of how balanced scorecard and hoshin kanri practices may usefully complement each other in strategic management. It is a useful framework for dynamically managing sustained competitive advantage

    E-Leadership through Strategic Alignment: An Empirical Study of Small- and Medium-sized Enterprises in the Digital Age

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    Small- and medium-sized enterprises (SMEs) play an important role in the European economy. A critical challenge faced by SME leaders, as a consequence of the continuing digital technology revolution, is how to optimally align business strategy with digital technology to fully leverage the potential offered by these technologies in pursuit of longevity and growth. There is a paucity of empirical research examining how e-leadership in SMEs drives successful alignment between business strategy and digital technology fostering longevity and growth. To address this gap, in this paper we develop an empirically derived e-leadership model. Initially we develop a theoretical model of e-leadership drawing on strategic alignment theory. This provides a theoretical foundation on how SMEs can harness digital technology in support of their business strategy enabling sustainable growth. An in-depth empirical study was undertaken interviewing 42 successful European SME leaders to validate, advance and substantiate our theoretically driven model. The outcome of the two stage process – inductive development of a theoretically driven e-leadership model and deductive advancement to develop a complete model through in-depth interviews with successful European SME leaders – is an e-leadership model with specific constructs fostering effective strategic alignment. The resulting diagnostic model enables SME decision makers to exercise effective e-leadership by creating productive alignment between business strategy and digital technology improving longevity and growth prospects
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