Hall and saias strategy follows structure

A social role perspective of entrepreneurship, Working paper.

Hall and saias strategy follows structure

Hall and saias strategy follows structure

Change capability as proposed was hypothesized to be a mediating variable. The tested model is shown in figure 3. It demonstrates good fit table 5as the values of CFI comparative fit index and RMSEA root mean squared approximation of error fall within the prescribed acceptable limits Garver and Mentzer, According to Zainudinmediation in social sciences can be of three types.

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Full mediation occurs when the regression coefficient between the independent and mediating as well as between independent and dependent variable is significant.

Partial mediation occurs when all three regression coefficients are significant, there is no mediation when the direct effect is higher than the indirect effect. Properties of AMOS 19 are used to calculate the direct and indirect effects. Mediation is said to be established if the coefficient of the direct path between the dependent and independent variable remains significant when the indirect path via the mediators is introduced in the model Bontis et al.

In accordance with the study of Baron and Kenny which inherits the technique of Sobelthe indirect effect should be higher than the direct effect to indicate a mediation effect in structural modeling Wan Mohamad et al.

The direct, indirect and total effects among the constructs as depicted in the model are presented in table 7. It reveals that change capability mediates the relationship between the structural flexibility of the firm and its ability to extract superior performance and thus contributes to competitive advantage.

Similar is the case when we interpret results concerning the relationship between transparent information and decision making and the competitive advantage. Here, change capability acts as well as a mediator between the independent and the dependent variable.

This reinforces the assumption that the ability to morph the organizational structure according to the needs of changes and also the information sharing and decision making positively contribute to the organizational ability to change and thus enhance the competitive advantage of firms.

In case of shared leadership and change friendly identity, there is no evidence of a mediating role of change capability.

Instead, it directly contributes to the competitive advantage of firms and also influences their change capability figure 3. Therefore, the hypothesis HMCA: Change capability CC plays a mediating role between SF, ID, SLI and CA is rejected and we infer that change capability only mediates the relationship between structural flexibility and the transparent information and decision making.

As SEM path analysis provides no straightforward tests to determine model fit Suhr,this relationship is to be examined in light of multiple tests e. Structure can be therefore interpreted as an enabling mechanism assisting organizations to adapt in response to the requirements of change. Change is significantly linked to the ability to perform better than rivals and thus providing an organization with a competitive edge resulting in unique advantages.

Thus, the ability of organizations to change is a significant contributor towards gaining competitive advantage. This finding conforms to earlier researches exploring relationships between the organizational structure, change and competitive advantage Bock et al. The role of this construct is to act as glue, holding together the structural configurations and the other attributes factors for organizational success but the relationship with competitive advantage is not pounced.


An important understanding which therefore emerges enhances our arguments proposed in the theoretical construct that transparent information and decision making does not contribute significantly to the construct of competitive advantage but it is an enabler positively contributing to organizational change capability.

The results of this study therefore support the earlier findings of scholars e. All in all, the relationships explored in this research contribute to our understanding of organizational health Smet et al. As discussed in figure 1, compared to living organisms, any formal organization can also be characterized by its anatomy organizational structurephysiology organizational systems and processes and psychology leadership and thought process.

A healthy state of any living entity depends upon integrative and balanced functioning of the three key components. A healthy organization will therefore need a balanced integrative mix of structure, decision making and leadership Ho et al. As observed in living entities, the three attributes of health reconfigure in response to changes and if the attributes resemble, organizational ability to change will also be conditioned by its attributes of structure, decision making and leadership.

Healthy entities as well as organizations have definitely advantages over their counterparts. This implies that the attributes of success, survival and health are rooted in the organizational attributes as proposed in this research.

An objective appraisal of the research reveals its contributions to the discipline of business management in three ways. First and foremost, this research contributes towards an understanding about the construct of organizational health and the attributes associated with it.

Subsequently, this research is valuable since it sheds light on the theoretical basis for change management strategies which experts recommend for competitive advantage.

Global purchasing strategy and international purchasing offices: Evidence from case studies to the direct link of 'structure follows strategy', IPO followership can be an underlying ) propose (and empirically test) that structure is a cause of strategy. However, Hall and Saias () further point out that the relationship between. organizational structures need to fit the adopted strategy (Burton & Obel, ). And strategy is the leading variable here, structure follows. In response, a counter proposition of hypothetical nature, is introduced by Hall & Saias (), suggesting that strategy follows structure. They argue that strategic choices are determined by structural. Exploring corporate strategy: text & cases. 8th ed ed. Harlow: Pearson Education Limited. Joseph McCann, Organizational effectiveness: changing concepts for changing environments.

The third important contribution is to the creation and establishment of a link between three distinct bodies of research: Since a lot of characteristics are industry-specific, it is advisable that results are interpreted with caution as they require to be tested in different industry contexts.

However, the broad constructs underlined on organizational health may not differ considerably across industries or even if they differ, the difference may be marginal. The nature of this study is proving association not causality in true sense.

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Since the data was obtained from the same respondent, common method variance can emerge. It is true that the respondents were compatible with the purpose of this research and they possessed sufficient knowledge for meaningful data collection and analysis.

Still, a multiple respondent survey would have been more meaningful.Hall and M. Saias accept the importance of strategy for structure but warn that the causality can go the other way. 2 An organisation’s existing structure very much determines the kinds of strategic opportunities that its management will see and want to grasp.

Schon eine knappe Zusammenschau der „structure follows strategy“-Debatte und der Diskussion um Markt- versus Ressourcen-Orientierung erweist die erhebliche Relevanz der Organisation für die Strategieformation. Hall, R.C./Saias, M.A (): Strategy follows structure! In: Strategic Management Journal 1, S.

– CrossRef Google. Hall DJ, Saias MA () Strategy follows structure. Strateg Manag J 1(2)– CrossRef Google Scholar Johanson J, Vahlne JE () The internationalization process of the firm—a model of knowledge development and increasing foreign market commitments.

In our study, the discussions about the strategy-structure alignment with domestic and foreign literature search were compiled.

Especially after the s it has been found that the strategic management has developed as an independent field and the increase in the studies carried out in parallel with the foreign literature in our country has. Strategy, 23rd July Integrating on Environment, formal Structure and Informal Relationships Readings on organizational structure and informal structure (from Thursday and Friday session) Exercise: Material Required; Straws, Packets, 5 Cello Tapes; One Packet of All Pins (Instructions: to be given) Discussion on Structural options.

Strategy researchers who emphasize the decision-making aspects of strategy have argued that organization structure also affects the direction of change in a firm. In his classic strategy textbook, Andrews notes the “the organizational reality that strategy also follows structure,” (Andrews, 15).