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A Review on the Relationship Between Strategic Management and Performance: The Role of Internal and External Contexts

Year 2015, Volume: 1 Issue: 2, 56 - 71, 15.12.2015
https://doi.org/10.25069/spmj.290425

Abstract

Over the last few decades, strategic management practices have been widely applied in the public sector across the world. Though this approach and its component techniques are still in their infancy, most practitioners and academics have reached a consensus on the role of strategic management in enhancing organisational efficiency. Accordingly, there have been many studies examiningthe relationship between strategic management and performance in public organizations. However, as far as the public sector is concerned, there is still insufficient evidence to indicate that strategic management has a direct link with organizational performance, and it is still unclear whether there are any other determining factors that might affect this alignment.
This study aims to investigate the theoretical background to the relationship between strategic management and organizational performance. It also identifies how internal and external contextual factors have mediating and moderating effects on this relationship, and suggests that studies analysing the fit between strategic management practices and performance in public sector organizations should take the influence of contextual parameters into consideration.

References

  • Andrews, R., Boyne, G. A., Law, J. & Walker, R. M. (2005). Representative Bureaucracy, Organizational Strategy and Public Service Performance: An Empirical Analysis of English Local Government. Journal of Public Administration Research and Theory, 15(3), 489-504.
  • Andrews, R., Boyne, G. A., & Walker, R. M. (2006). Strategy Content and Organizational Performance: An Empirical Analysis,Public Administration Review, 66(1), 52-63.
  • Andrews, R., Boyne, G. A., Law, J.& Walker, R. M. (2009). Strategy Formulation, Strategy Content and Performance,Public Management Review, 11(1), 1-22.
  • Andrews, R., Boyne, G. A., Law, J. and Walker, R. M. (2012).Strategic Management and Public Service Performance. UK: Palgrave Macmillan.
  • Ates, H & Çetin, D. (2004).Performance Management and Performance-based Budget in the Public Sector, In M. Acar and H. Ozgur (Eds.), Contemporary Public Administration II (pp. 255-285). Nobel Press: Turkey.
  • Bailey, A., Johnson, G.,& Daniels, K. (2000). Validation of a Multi- Dimensional Measure of Strategy Development Processes,British Journal of Management, 11, 152-162.
  • Barca, M. & Nohutcu, A. (2013).Strategic Management in the Public Sector and Criticial Perspective to the Strategic Planning Practices in Turkish Public Administration, In A. Balci, A. Nohutcu, N. K. Özturk, B. Coskun (Eds.), Contemporary Public Administration Approaches(pp.339-362).3th edition, Seçkin Press: Turkey.
  • Bendor, J. (2012). Bounded Rationality and Politics, London: University of California Press.
  • Boyne, G. A. (2002). Public and Private Management: What’s the Difference?.Journal of Management Studies, 39(1), 97-122.
  • Boyne, G. A. & Gould-William, J. S. (2003). Strategic Planning and the Performance of Public Organizations: An Empirical Analysis. Public Management Review, 80(2),115-132.
  • Boyne, G. A.& Walker. R. (2010). Strategic management and Public Service Performance: The way ahead. Public Administration Review, 70(s1),s185-s191.
  • Conant, J. S., Mokwa, M. P. & Varadarajan, P. R. (1990).Strategic Types, Distinctive Marketing Competencies and Organizational Performance: A Multiple Measures-based Study. Strategic Management Journal, 11(5), 365-383.
  • Donaldson, L. (2001). The Contingency Theory of Organizations. Sage Publication : USA.
  • Hart, S. & Banbury. C. (1994). How Strategy Processes can Make a Difference. Strategic Management Journal, 11(5), 365-383.
  • Hood, C. (1991). A Public Management for All Seasons. Public Administration, 69(1), 3-19.
  • Hughes, O. (1998). Public Management & Administration: an Introduction. Macmillan Press: USA.
  • Inkpen, A. & Choudhury, N. (1995). The Seeking of Strategy Where It is not: Towards a Theory of Strategy Absence.Strategic Management Journal, 16 (4), 313-323.
  • James, W. & Hatten, K. (1994). Evaluating the Performance Effects of Miles and Snow’s Strategic Archetypes in Banking. Journal of Business Research, 31(2/3),145-154.
  • Jones, B. D. (1999). Bounded Rationality. Annual Review Political Science, 2,297-321.
  • Jones, B. D. (2003). Bounded Rationality and Political Science: Lessons from Public Administration and Public Policy. Journal of Public Administration Research and Theory, 13(4), 395-412.
  • Johnson, G. & Scholes, K. (2001). Exploring Public Sector Strategy. Pearson Education Limited: UK.
  • Joyce, P. (1999). Strategic Management for the Public Services. Open University Press: USA.
  • Kloot, L & Martin, J. (2000). Strategic Performance Management: A Balanced Approach to Performance Management Issues in Local Government. Management Accounting Research,11, 231-251.
  • Macmillan, H & Tampoe, M. (2000). Strategic Management. Oxford University Press: USA.
  • McLaughin, K; Osborne, S & Ferlie, E. (2002). New Public Management; Current Trends and Future Prospects. Routledge: USA
  • Meier, K. J. O’Toole, L. J. Boyne, G. A. & Walker, R. M. (2007). Strategic Management and the Performance of Public Organizations: Testing Venerable Ideas against Recent Theories. Journal of Public Administration Research and Theory, 17(3), 357–77.
  • Miles, R. E & Snow, C. C. (1978). Organizational Strategy and Structure and Process. McGraw-Hill: New York.
  • Mintzberg, H., Ahlstrand, B. W. & Lample, J. (1998). Strategy Safari A Guided Tour through the Wilds of Strategic Management. The Free Press: New York.
  • Noble, C. H. (1999). The Eclectic Roots and Strategy Implementation Research. Journal of Business Research, 45(2), 119-134.
  • Nutt, P & Backoff, W. R. (1992). Strategic management of public and third sector organizations. Jossey-Bass Publisher: USA.
  • Osborne, D. & Gaebler, T. (1992).Reinventing Government. Plume: USA.
  • Özgur, H. (2004).Strategic Management in Public Organizations. In M. Acar& H. Özgur (Eds),Contemporary Public Administration II (pp.207-252). Nobel Press: Turkey.
  • Perry, J & Rainey, H. G. (1988). The Public- Private Distinction in Organization Theory: A Critique and Research Strategy. Academy Management Review, 13(2), 182-201.
  • Poister, T. & Streib, G. (1999). Strategic Management in the public sector. Public Productivity and Management Review, 22(3), 308-325.
  • Pollitt, C. (2006). The Essential Public Manager. Open University Press: UK.
  • Simon, H. A. (1997). Models of Bounded Rationality Empirically Grounded Economic Reason, Volume 3. Massachusetts Institute of Technology Press: England.
  • Toft, G. S. (1989). Synoptic (one best way) approaches of strategic management. In J. Rabin, G. J. Miller, & W. B. Hildreth (Eds.), Handbook of strategic management. Marcel Delcer: New York.
  • Veliyath, R & Shortnell, S. M. (1993). Strategic Orientation, Strategic Planning System Characteristics and Performance.Journal of Management Studies, 30(3), 359-381.
  • Woodside, A., Sullivan, D. P & Trappey, R. J. (1999). Assessing Relationship Among Strategic Types, Distinctive Marketing Competencies and Organizational Performance.Journal of Business Research, 45(2), 135-146.
  • Zahra, E.J. & Shortell, S. M. (1990). Research Evidence on the Miles and Snow Typology.Journal of Management, 16(4), 751-758.

A Review on the Relationship Between Strategic Management and Performance: The Role of Internal and External Contexts

Year 2015, Volume: 1 Issue: 2, 56 - 71, 15.12.2015
https://doi.org/10.25069/spmj.290425

Abstract

Over the last few decades, strategic management practices have been widely applied in the public sector across the world. Though this approach and its component techniques are still in their infancy, most practitioners and academics have reached a consensus on the role of strategic management in enhancing organisational efficiency. Accordingly, there have been many studies examiningthe relationship between strategic management and performance in public organizations. However, as far as the public sector is concerned, there is still insufficient evidence to indicate that strategic management has a direct link with organizational performance, and it is still unclear whether there are any other determining factors that might affect this alignment.
This study aims to investigate the theoretical background to the relationship between strategic management and organizational performance. It also identifies how internal and external contextual factors have mediating and moderating effects on this relationship, and suggests that studies analysing the fit between strategic management practices and performance in public sector organizations should take the influence of contextual parameters into consideration.

References

  • Andrews, R., Boyne, G. A., Law, J. & Walker, R. M. (2005). Representative Bureaucracy, Organizational Strategy and Public Service Performance: An Empirical Analysis of English Local Government. Journal of Public Administration Research and Theory, 15(3), 489-504.
  • Andrews, R., Boyne, G. A., & Walker, R. M. (2006). Strategy Content and Organizational Performance: An Empirical Analysis,Public Administration Review, 66(1), 52-63.
  • Andrews, R., Boyne, G. A., Law, J.& Walker, R. M. (2009). Strategy Formulation, Strategy Content and Performance,Public Management Review, 11(1), 1-22.
  • Andrews, R., Boyne, G. A., Law, J. and Walker, R. M. (2012).Strategic Management and Public Service Performance. UK: Palgrave Macmillan.
  • Ates, H & Çetin, D. (2004).Performance Management and Performance-based Budget in the Public Sector, In M. Acar and H. Ozgur (Eds.), Contemporary Public Administration II (pp. 255-285). Nobel Press: Turkey.
  • Bailey, A., Johnson, G.,& Daniels, K. (2000). Validation of a Multi- Dimensional Measure of Strategy Development Processes,British Journal of Management, 11, 152-162.
  • Barca, M. & Nohutcu, A. (2013).Strategic Management in the Public Sector and Criticial Perspective to the Strategic Planning Practices in Turkish Public Administration, In A. Balci, A. Nohutcu, N. K. Özturk, B. Coskun (Eds.), Contemporary Public Administration Approaches(pp.339-362).3th edition, Seçkin Press: Turkey.
  • Bendor, J. (2012). Bounded Rationality and Politics, London: University of California Press.
  • Boyne, G. A. (2002). Public and Private Management: What’s the Difference?.Journal of Management Studies, 39(1), 97-122.
  • Boyne, G. A. & Gould-William, J. S. (2003). Strategic Planning and the Performance of Public Organizations: An Empirical Analysis. Public Management Review, 80(2),115-132.
  • Boyne, G. A.& Walker. R. (2010). Strategic management and Public Service Performance: The way ahead. Public Administration Review, 70(s1),s185-s191.
  • Conant, J. S., Mokwa, M. P. & Varadarajan, P. R. (1990).Strategic Types, Distinctive Marketing Competencies and Organizational Performance: A Multiple Measures-based Study. Strategic Management Journal, 11(5), 365-383.
  • Donaldson, L. (2001). The Contingency Theory of Organizations. Sage Publication : USA.
  • Hart, S. & Banbury. C. (1994). How Strategy Processes can Make a Difference. Strategic Management Journal, 11(5), 365-383.
  • Hood, C. (1991). A Public Management for All Seasons. Public Administration, 69(1), 3-19.
  • Hughes, O. (1998). Public Management & Administration: an Introduction. Macmillan Press: USA.
  • Inkpen, A. & Choudhury, N. (1995). The Seeking of Strategy Where It is not: Towards a Theory of Strategy Absence.Strategic Management Journal, 16 (4), 313-323.
  • James, W. & Hatten, K. (1994). Evaluating the Performance Effects of Miles and Snow’s Strategic Archetypes in Banking. Journal of Business Research, 31(2/3),145-154.
  • Jones, B. D. (1999). Bounded Rationality. Annual Review Political Science, 2,297-321.
  • Jones, B. D. (2003). Bounded Rationality and Political Science: Lessons from Public Administration and Public Policy. Journal of Public Administration Research and Theory, 13(4), 395-412.
  • Johnson, G. & Scholes, K. (2001). Exploring Public Sector Strategy. Pearson Education Limited: UK.
  • Joyce, P. (1999). Strategic Management for the Public Services. Open University Press: USA.
  • Kloot, L & Martin, J. (2000). Strategic Performance Management: A Balanced Approach to Performance Management Issues in Local Government. Management Accounting Research,11, 231-251.
  • Macmillan, H & Tampoe, M. (2000). Strategic Management. Oxford University Press: USA.
  • McLaughin, K; Osborne, S & Ferlie, E. (2002). New Public Management; Current Trends and Future Prospects. Routledge: USA
  • Meier, K. J. O’Toole, L. J. Boyne, G. A. & Walker, R. M. (2007). Strategic Management and the Performance of Public Organizations: Testing Venerable Ideas against Recent Theories. Journal of Public Administration Research and Theory, 17(3), 357–77.
  • Miles, R. E & Snow, C. C. (1978). Organizational Strategy and Structure and Process. McGraw-Hill: New York.
  • Mintzberg, H., Ahlstrand, B. W. & Lample, J. (1998). Strategy Safari A Guided Tour through the Wilds of Strategic Management. The Free Press: New York.
  • Noble, C. H. (1999). The Eclectic Roots and Strategy Implementation Research. Journal of Business Research, 45(2), 119-134.
  • Nutt, P & Backoff, W. R. (1992). Strategic management of public and third sector organizations. Jossey-Bass Publisher: USA.
  • Osborne, D. & Gaebler, T. (1992).Reinventing Government. Plume: USA.
  • Özgur, H. (2004).Strategic Management in Public Organizations. In M. Acar& H. Özgur (Eds),Contemporary Public Administration II (pp.207-252). Nobel Press: Turkey.
  • Perry, J & Rainey, H. G. (1988). The Public- Private Distinction in Organization Theory: A Critique and Research Strategy. Academy Management Review, 13(2), 182-201.
  • Poister, T. & Streib, G. (1999). Strategic Management in the public sector. Public Productivity and Management Review, 22(3), 308-325.
  • Pollitt, C. (2006). The Essential Public Manager. Open University Press: UK.
  • Simon, H. A. (1997). Models of Bounded Rationality Empirically Grounded Economic Reason, Volume 3. Massachusetts Institute of Technology Press: England.
  • Toft, G. S. (1989). Synoptic (one best way) approaches of strategic management. In J. Rabin, G. J. Miller, & W. B. Hildreth (Eds.), Handbook of strategic management. Marcel Delcer: New York.
  • Veliyath, R & Shortnell, S. M. (1993). Strategic Orientation, Strategic Planning System Characteristics and Performance.Journal of Management Studies, 30(3), 359-381.
  • Woodside, A., Sullivan, D. P & Trappey, R. J. (1999). Assessing Relationship Among Strategic Types, Distinctive Marketing Competencies and Organizational Performance.Journal of Business Research, 45(2), 135-146.
  • Zahra, E.J. & Shortell, S. M. (1990). Research Evidence on the Miles and Snow Typology.Journal of Management, 16(4), 751-758.
There are 40 citations in total.

Details

Subjects Political Science
Journal Section Articles
Authors

Elif Genç This is me

Ramazan Şengül

Publication Date December 15, 2015
Submission Date February 7, 2017
Published in Issue Year 2015 Volume: 1 Issue: 2

Cite

APA Genç, E., & Şengül, R. (2015). A Review on the Relationship Between Strategic Management and Performance: The Role of Internal and External Contexts. Strategic Public Management Journal, 1(2), 56-71. https://doi.org/10.25069/spmj.290425

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