Management practices and organisational behavior

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Strategic management is the process of specifying an organization's objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. It is the highest level of managerial activity, usually performed by the company's Chief Executive Officer (CEO) and executive team. It provides overall direction to the whole enterprise. An organization's strategy must be appropriate for its resources, circumstances, and objectives. The process involves matching the companies' strategic advantages to the business environment the organization faces. One objective of an overall corporate strategy is to put the organization into a position to carry out its mission effectively and efficiently. A good corporate strategy should integrate an organization's goals, policies, and action sequences (tactics) into a cohesive whole. .

It is a plan of action and managerial decisions which measure the future growth and long term performance of any organization or business. The term strategic management originated from the army which used strategies in wars. So the word strategic means something that is done cleverly. Strategic management is used in business to build up the competitive edge against any competition. Many successful businesses use competitive advantage in order to lead the market or to come at the top. So this is used very commonly today. It links the management functions in a way that brings the desired results.

Strategic management gives a business specific thoughts to overcome current problems and to look to the future. The basic purpose of strategic management is to foresee business value in the future, to eliminate the possible risks in the environment, and to look for the changing markets trends. Simple management and strategic management are different. Generally the manager does not look for future outcomes when dealing with simple management. They just deal in to day to day management but strategic management deals with the future consequences. Now the purpose of strategic management is not only profit making but it involves the entire sector which requires special attention

Stsrategy formulation &implimantation

Strategic management can be seen as a combination of strategy formulation and strategy implementation. Strategy formulation involves:

Doing a situation analysis: both internal and external; both micro-environmental and macro-environmental. Concurrent with this assessment, objectives are set. This involves crafting vision statements (long term), mission statements (medium term), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives.

These objectives should, in the light of the situation analysis, suggest a strategic plan. The plan provides the details of how to obtain these goals.

This three-step strategy formation process is sometimes referred to as determining where you are now, determining where you want to go, and then determining how to get there. These three questions are the essence of strategic planning.

Strategy implementation involves:

Allocation of sufficient resources (financial, personnel, time, computer system support)

Establishing a chain of command or some alternative structure (such as cross functional teams)

Assigning responsibility of specific tasks or processes to specific individuals or groups

It also involves managing the process. This includes monitoring results, comparing to benchmarks and best practices, evaluating the efficacy and efficiency of the process, controlling for variances, and making adjustments to the process as necessary.

When implementing specific programs, this involves acquiring the requisite resources, developing the process, training, process testing, documentation, and integration with (and/or conversion from) legacy processes. Strategy formation and implementation is an on-going, never-ending, integrated process requiring continuous reassessment and reformation. Strategic management is dynamic. See Strategy dynamics. It involves a complex pattern of actions and reactions. It is partially planned and partially unplanned. Strategy is both planned and emergent, dynamic, and interactive. Some people (such as Andy Grove at Intel) feel that there are critical points at which a strategy must take a new direction in order to be in step with a changing business environment. These critical points of change are called strategic inflection points.

Strategic management operates on several time scales. Short term strategies involve planning and managing for the present. Long term strategies involve preparing for and preempting the future. Marketing strategist, Derek Abell (1993), has suggested that understanding this dual nature of strategic management is the least understood part of the process. He claims that balancing the temporal aspects of strategic planning requires the use of dual strategies simultaneously.


Strategic management as a discipline originated in the 1950s and 60s. Although there were numerous early contributors to the literature, the most influential pioneers were Alfred Chandler, Philip Selznick, Igor Ansoff, and Peter Drucker.

Alfred Chandler recognized the importance of coordinating the various aspects of management under one all-encompassing strategy. Prior to this time the various functions of management were separate with little overall coordination or strategy. Interactions between functions or between departments were typically handled by a boundary position, that is, there were one or two managers that relayed information back and forth between two departments. Chandler also stressed the importance of taking a future looking long term perspective. In his groundbreaking work Strategy and Structure (1962), Chandler showed that a long term coordinated strategy was necessary to give a company structure, direction, and focus. He says it concisely, "structure follows strategy". Today we recognize that this is only half the story: strategy also follows from structure Philip Selznick (1957) introduced the idea of matching the organization's internal factors with external environmental circumstances. This core idea was developed into what we now call SWOT analysis by Learned, Andrews, and others at the Harvard Business School General Management Group. Strengths and weaknesses of the firm are assessed in light of the opportunities and threats from the business environment.

Igor Ansoff built on Chandler's work by adding a range of strategic concepts and inventing a whole new vocabulary. He developed a strategy grid that compared market penetration strategies, product development strategies, market development strategies and horizontal and vertical integration and diversification strategies. He felt that management could use these strategies to systematically prepare for future opportunities and challenges. In his classic Corporate strategy (1965) he developed the "gap analysis" still used today in which we must understand the gap between where we are currently and where we would like to be, then develop what he called "gap reducing actions".

Peter Drucker was a prolific strategy theorist, author of dozens of management books, with a career spanning five decades. His contributions to strategic management were many but two are most important. Firstly, he stressed the importance of objectives. An organization without clear objectives is like a ship without a rudder. As early as 1954 he was developing a theory of management based on objectives. This evolved into his theory of management by objectives (MBO). According to Drucker, the procedure of setting objectives and monitoring your progress towards them should permeate the entire organization, top to bottom. His other seminal contribution was in predicting the importance of what today we would call intellectual capital. He predicted the rise of what he called the "knowledge worker" and explained the consequences of this for management. He said that knowledge work is nonhierarchical. Work would be carried out in teams with the person most knowledgeable in the task at hand being the temporary leader.

E. Chaffee (1985) summarized what he thought were the main elements of strategic management theory by the 1970s. They are:

In the 1970s much of strategic management dealt with size, growth, and portfolio theory. The PIMS study was a long term study, started in the 1960s and lasted for 19 years, that attempted to understand the Profit Impact of Marketing Strategies (PIMS), particularly the effect of market share. Started at General Electric, moved to Harvard in the early 1970s, and then moved to the Strategic Planning Institute in the late 1970s, it now contains decades of information on the relationship between profitability and strategy. Their initial conclusion was unambiguous: The greater a company's market share, the greater will be their rate of profit. The high market share provides volume and economies of scale. It also provides experience and learning curve advantages. The combined effect is increased profits. (The validity of the study's conclusions have recently been questioned in Tellis, G. and Golder, P. (2002)).

The benefits of high market share naturally lead to an interest in growth strategies. The relative advantages of horizontal integration, vertical integration, diversification, franchises, mergers and acquisitions, joint ventures, and organic growth were discussed. The most appropriate market dominance strategies were assessed given the competitive and regulatory environment.

There was also research that indicated that a low market share strategy could also be very profitable. Schumacher (1973), Woo and Cooper (1982), Levenson (1984), and later Traverso (2002) showed how smaller niche players obtained very high returns.

By the early 1980s the paradoxical conclusion was that high market share and low market share companies were often very profitable but most of the companies in between were not. This was sometimes called the "hole in the middle" problem. This anomaly would be explained by Michael Porter in the 1980s.

The management of diversified organizations required new techniques and new ways of thinking. The first CEO to address the problem of a multi-divisional company was Alfred Sloan at General Motors. GM was decentralized into semi-autonomous "strategic business units" (SBU's), but with centralized support functions.

One of the most valuable concepts in the strategic management of multi-divisional companies was portfolio theory. In the previous decade Harry Markowitz and other financial theorists developed the theory of portfolio analysis. It was concluded that a broad portfolio of financial assets could reduce specific risk. In the 1970s marketers extended the theory to product portfolio decisions and managerial strategists extended it to operating division portfolios. Each of a company's operating divisions were seen as an element in the corporate portfolio. Each operating division (also called strategic business units) was treated as a semi-independent profit center with its own revenues, costs, objectives, and strategies. Several techniques were developed to analyze the relationships between elements in a portfolio. B.C.G. Analysis, for example, was developed by the Boston Consulting Group in the early 1970s. This was the theory that gave us the wonderful image of a CEO sitting on a stool milking a cash cow. Shortly after that the G.E. multi factoral model was developed by General Electric. Companies continued to diversify until the 1980s when it was realized that in many cases a portfolio of operating divisions was worth more as separate completely independent companies.

The marketing revolution

The 1970s also saw the rise of the marketing oriented firm. From the beginnings of capitalism it was assumed that the key requirement of business success was a product of high technical quality. If you produced a product that worked well and was durable, it was assumed you would have no difficulty selling them at a profit. This was called the production orientation and it was generally true that good products could be sold without effort. This was largely due to the growing numbers of affluent and middle class people that capitalism had created. But after the untapped demand caused by the second world war was saturated in the 1950s it became obvious that products were not selling as easily as they were. The answer was to concentrate on selling. The 1950s and 1960s is known as the sales era and the guiding philosophy of business of the time is today called the sales orientation. In the early 1970s Theodore Levitt and others at Harvard realized that the sales orientation had things backward. They claimed that instead of producing products then trying to sell them to the customer, businesses should start with the customer, find out what they wanted, then produce it for them. The customer became the driving force behind all strategic business decisions. This marketing orientation, in the decades since its introduction, has been reformulated and repackaged under numerous names including customer orientation, marketing philosophy, customer intimacy, customer focus, customer driven, and market focused.

The Japanese challenge

By the late 70s people had started to notice how successful Japanese industry had become. In industry after industry, including steel, watches, ship building, cameras, autos, and electronics, the Japanese were surpassing American and European companies. Westerners wanted to know why. Numerous theories purported to explain the Japanese success including:

Higher employee morale, dedication, and loyalty;

Lower cost structure, including wages;

Effective government industrial policy;

Modernization after WWII leading to high capital intensity and productivity;

Economies of scale associated with increased exporting;

Relatively low value of the Yen leading to low interest rates and capital costs, low dividend expectations, and inexpensive exports;

Superior quality control techniques such as Total Quality Management and other systems introduced by W. Edwards Deming in the 1950s and 60s. (This is detailed in Schonberger R. (1982).)

Although there was some truth to all these potential explanations, there was clearly something missing. In fact by 1980 the Japanese cost structure was higher than the American. And post WWII reconstruction was nearly 40 years in the past. The first management theorist to suggest an explanation was Richard Pascale.

In 1981 Richard Pascale and Anthony Athos in The Art of Japanese Management claimed that the main reason for Japanese success was their superior management techniques.


The strategic management process is a six-step process that encompasses stratehy plan-

Ing, implementation, and evaluation. Although the first four steps describe the planning

That must take place, implementation and evaluation are just at important. Even the

Best strategies can fail if management doesn't implement or evaluate them properly.

Let's examine in detail the six step.

Step 1:- Identifying the organization's current mission, goals, and strategies.

Step 2:- Doing an external analysis.

Step 3:- Doing an internal analysis.

Step4:- Formulating strategies.

Step 5:- Implementing strategies.

Step 6:- Evaluating result


Some of the objectives of strategic management are:

1. To provide the better and up-to-date information about the organization's current position and to predict where can be the organization stand in future.

2. To make managers and organizational members more alert about the opportunities and hreatening development in their corresponding field.

3. To help the entrepreneur to unify its managerial and organizational efforts.

4. To create a more proactive management posture.

5. To promote the development of a constantly evolving business model.

6 To provide the opportunities to managers for evaluating the company's budget according to . the situation

Strategic management involves adapting the organization to its business environment.

Growth and portfolio theory

Management by objectives is one approach to planning that helps to overcome some of these barriers. It is based on an idea that organizational objectives are such an important and fundamental part of management that managers should use a management approach based exclusively on them. This concept emphasizes the establishment of common objectives by managers and their subordinates acting together and the use of these objectives as the primary basis of motivation, evaluation, and control efforts. The management by objectives has been widely adopted in American and Canadian corporations.

The term management by objectives (MBO) was popularized as an approach to planning by Peter Drucker in 1954 in his book The Practice of Management. Drucker argued that the first requirement of managing any enterprise is "management by objectives and self control." He contrasted management by objectives with management by drivers. Management by drivers responses to new financial or market pressures with an "economy drive" and "production drive." In management by objectives effective planning depends on every manager's having clearly defined objectives that apply specifically to his individual functions within the

METHOLODGY:- Secondary research involves the summary, collation and/or synthesis of existing research rather than primary research, where data is collected from, for example, research subjects or experiments. I have collected all the data from different websites, previous term papers on the related topics and books.


'Keep out' signs: the role of deterrence in the competition for resources

According to Gavin Clarkson, Puay Khoon(Nov 2010. Vol. 31, Is. 11s; pg. 120) To explain resource heterogeneity, past research focuses on how rivals' resources are hidden from firms and firms accordingly have difficulties accessing them. We argue that resource heterogeneity may also arise when firms are deterred from a technological space upon being shown what resources rivals already possess within that space. To illustrate this deterrence effect, we use patent reexamination certificates, which indicate strategic stakes within a technological space without materially disclosing additional details of the underlying technologies and hence avoid the confounding effect of attracting competition through disclosure. We demonstrate how rivals' reexamination certificates within a technological space induce a firm to subsequently allocate less inventive effort in that space, based on two mechanisms -- indications of rivals' developmental speed and exclusionary ability. We further develop these two mechanisms by arguing that the deterrence effect is stronger when rivals' speed is enhanced by their downstream capabilities, or when rivals' exclusion is enhanced by their litigation experiences. Findings suggest that a firm's path of resource accumulation evolves through avoidance of rivals' paths, and deterrence may constitute a viable alternative theory of resource heterogeneity

Top Management Team Advice Seeking and Exploratory Innovation:: The Moderating Role of TMT Heterogeneity

According to Alexander S Alexiev, Justin J P Jansen, Frans A J Van den Bosch, Henk W Volberd(: Nov 2010. Vol. 47, Iss. 7; pg. 1343) Research on strategic decision making has considered advice-seeking behaviour as an important top management team attribute that influences organizational outcomes. Yet, our understanding about how top management teams utilize advice to modify current strategies and pursue exploratory innovation is still unclear. To uncover the importance of advice seeking, we delineate between external and internal advice seeking and investigate their impact on exploratory innovation. We also argue that top management team heterogeneity moderates the impact of advice seeking on exploratory innovation. Findings indicated that both external and internal advice seeking are important determinants of a firm's exploratory innovation. In addition, we observed that top management team heterogeneity facilitates firms to act upon internal advice by combining different perspectives and developing new products and services. Interestingly, heterogeneous top management teams appeared to be less effective to leverage external advice and pursue exploratory innovation.

A comparative study of schedule nervousness among high-tech manufacturers across the Straits

According to Kris M Y Law, Angappa Gunasekar(Iss. 20;pg. 6015: 2010. Vol. )a High-tech firms are facing multiple challenges in a competitive market. Among the multiple challenges, scheduling nervousness has been a critical issue concerning the high-tech manufacturers. The purpose of this study is to investigate the relationships between the various schedule nervousness determinants (relationships with business partners, internal operation) and to study the impacts of schedule nervousness on the individuals dealing with scheduling issues in the supply chain (i.e., collective efficacy), among the high-tech manufacturing firms in the region (Hong Kong and Taiwan). A research framework linking schedule instability and contributors (suppliers/customers and interna.l operation) and individuals (perceived efficacy) is applied. The study sheds light on the relationships between scheduling instability and various determinants in the supply chain.

Managerial decision making and firm performance under a resource-based paradigm

According to Martin H Kunc, John D W Morecrof ( Nov 2010. Vol. 31, Iss. 11; pg. 1164) A framework is presented that connects managerial decision making to resource building and firm performance. The framework takes a behavioral view of decision making and distinguishes two distinct decision-making processes. First there is the creative conceptualization of new resource configurations that are intended to deliver competitive advantage. Then there is the painstaking development of resources required to implement strategy. We argue that heterogeneity in the resources of rival firms arises from the interplay of these two processes: resource conceptualization and resource development. Heterogeneity spawns performance differences that can be explained ex ante from characteristics of managerial decision-making processes. We illustrate the approach in a simulated decision-making environment representing a highly competitive and dynamically complex industry. Results from repeated simulation experiments conducted with executive and MBA students show vast differences in performance among firms, even when they started with identical resource positions. In a departure from traditional resource-based literature, we explain how these differences stem from path dependent accumulation of resources and spontaneous variety in the way rivals conceptualize resources

close ↑Rice University; CEO's fate in hands of external constituents

According to Anonymous. Investment Weekly News. Atlant (Oct 16, 2010. pg. 64 )The Role of Investment Analysts, Wiersema and Zhang used panel data on the S&P 500 companies from 2000 to 2005, a time period in which concerns over shareholder wealth maximization and CEO accountability generated significant pressures and constraints on companies.

They examined three measures of investment analyst stock recommendations - average analyst recommendation, change in average analyst recommendation (upgrading or downgrading) and percentage of sell recommendations - all calculated from data gathered from the Institutional Brokers Estimate System. They found that for firms that were initially rated as a "buy" or "strong buy," a downgrade had a significant impact. For firms already rated as relatively unfavorable, further downgrades were not significant. For upgrades, there was no significant effect, regardless of the initial average analyst recommendation.

"An upgrade does not materially reduce the probability of CEO dismissal, while a downgrade increases the probability of CEO dismissal significantly," Zhang said. "That is consistent with prior findings that negative information alters investor perceptions more than positive information."

This article was prepared by Investment Weekly News editors from staff and other reports. Copyright 2010, Investment Weekly News via

Does subnational region matter? Foreign affiliate performance in the United states and China

Accordinng to Christine M Chan, Shige Makino, Takehiko Isob (Nov 2010. Vol. 31, Iss. 11; pg. 1226) This study examines the extent to which subnational regions can explain foreign affiliate performance in two host country settings, the United States and China, the world's two largest economies at polar ends of the economic spectrum (i.e., an advanced versus an emerging economy). Our results suggest that the subnational region is significant in explaining foreign affiliate performance, thus confirming its importance as an additional unit of analysis for firm performance. This study also shows that the effects of subnational region are far stronger in China than they are in the United States, thus suggesting that regional differences are more critical in their explanatory power for firm performance in emerging economies than they are in advanced economies.

The effect of board capital and CEO power on strategic change

According to Katalin Takacs Haynes, Amy Hillman (Nov 2010. Vol. 31, Iss. 11; pg. 1145)

We develop the construct of board capital, composed of the breadth and depth of directors' human and social capital, and explore how board capital affects strategic change. Building upon resource dependence theory, we submit that board capital breadth leads to more strategic change, while board capital depth leads to less. We also recognize CEO power as a moderator of these relationships. Our hypotheses are tested using a random sample of firms on the S&P 500. We find support for the effect of board capital on strategic change, and partial support for the moderating effect of CEO power

close ↑Performance implications of customer-linking capabilities: Examining the complementary role of customer orientation and CRM technology

According to Adam Rapp, Kevin J Trainor, Raj Agnihotri.( . Vol. 63, Iss. 11; pg. 1229)

This study examines how technology and complementary resources are bundled to form capabilities that foster durable customer relationships. Drawing from the literature in marketing, strategic management, and information systems, the first outcome is a theoretically grounded conceptualization of CRM technology capability comprised of three complementary resources: technology, business, and human resources. The second key finding is that CRM technology capability and customer orientation have a positive association with the development of durable customer relationships. These resources also have a positive interactive effect on customer-linking capability, highlighting the importance of aligning strategic business and technology resources. Finally, the authors find that customer-linking capability has a positive relationship with customer relationship performance and that the rapidity of changes in the external environment moderates this relationship. This study addresses these research questions in a cross-sectional study of 215 organizations using a partial least squares modeling approach

Business to Business Marketing; New business to business marketing study findings recently were published by researchers at Sogang University

According to Anonymous. Marketing Weekly News. Atlanta (Oct 16, 2010. pg. 625 ) Because these alliances are interdependent and the goals or interests of both partners can differ, conflict is likely to be experienced between the alliance members. 2010 OCT 16 - ( -- "The focus of the present research is to ascertain reasons for potential conflict between co-marketing alliance partners and means of managing the relationship more effectively. Specifically, the investigation seeks to identify antecedents of conflict in co-marketing alliances from a strategic perspective," scientists in Seoul, South Korea report."Methodology/Approach: To test the study hypotheses, the authors surveyed 178 executives in the credit card industry in South Korea. The Korean market was used because of the extreme popularity of credit card usage in that country. The empirical findings provide some support for the idea that strategic management of conflict should be of importance to co-marketing alliance partners. Originality/Value/Contribution: As industries experience declines in profitability, co-marketing alliances have become a popular means for firms in efforts to increase sales and profitability in maturing industries. Because these alliances are interdependent and the goals or interests of both partners can differ, conflict is likely to be experienced between the alliance members. Notwithstanding this likelihood, there are still very few studies that provide comprehensive examination regarding which cognitive factors are associated with conflict in co-marketing alliances," wrote H.T. Yi and colleagues, Sogang University.

The hidden costs of outsourcing: evidence from patent data

According to Markus Reitzig, Stefan Wagner (Nov 2010. Vol. 31, Iss. 11; pg. 1183) Drawing on patent data for approximately 500 firms over 20 years, we advance recent theory on firm boundaries and test these propositions for the first time. We first provide evidence for the existence of knowledge complementarities between vertically related activities in a firm's value chain by showing that firms face increasing (decreasing) performance in conducting downstream activities the less (more) they outsource related upstream activities (i.e., patent filing). We then propose and empirically demonstrate that vertical integration benefits through learning differ from vertical outsourcing costs through forgetting. We show that firms can partly offset these hidden outsourcing costs by sourcing similar upstream products from internal and external suppliers.



According to Marc Gunther. Fortune (Sep 27, 2010. Vol. 162, Iss. 5; pg. 7) 3M produces a mind-bending 55,000 products. Sales grew 21% and net income 43% in the first half of 2010. 3M has long been synonymous with innovation. Founded in 1902 as the Minnesota Mining & Manufacturing Co, it has deployed a range of practices to promote out-of-the-box thinking. Last year 3M introduced the first electronic stethoscope with Bluetooth technology. Their business model is literally new-product innovation, says Larry Wendling, who oversees 3M's corporate research. The company, as a result, had in place a goal to generate 30% of revenue from new products introduced in the past five years. Six Sigma remains in force in 3M's factories, but it's gone from the labs. Each of 3M's six major business units has its own research lab, which is product-focused, while the corporate research staff works on core technologies that are shared by all the businesses.

Alliance portfolio diversity and firm performance

According to Ruihua Joy Jiang, Qingjiu Tom Tao, Michael D Santoro.( Oct 2010. Vol. 31, Iss. 10; pg. 1136) In this paper, we offer a comprehensive alliance portfolio diversity construct that includes partner, functional, and governance diversity. Grounding our work primarily with the resource- and dynamic capabilities-based views, we argue that increased diversity in partners' industry, organizational, and national background will incur added complexity and coordination costs but will provide broadened resource and learning benefits. Increased functional diversity results in a more balanced portfolio of exploration and exploitation activities that expands the firm's knowledge base while increased governance diversity inhibits learning and routine building. Hypotheses were tested with alliance portfolio and performance data for 138 multinational firms in the global automobile industry during the twenty-year period from 1985 to 2005. We found alliance portfolios with greater organizational and functional diversity and lower governance diversity were related to higher firm performance while industry diversity had a U-shaped relationship with firm performance. We suggest firms manage their alliances with a portfolio perspective, seeking to maximize resource and learning benefits by collaborating with a variety of organizations in various value chain activities while minimizing managerial costs through a focused set of governance structures

Beyond the dark side of executive psychology: Current research and new directions

According to Helen Bollaert, Valérie Petit ( Oct 2010. Vol. 28, Iss. 5; pg. 362 ) In corporate finance and strategic management, the idea of executive hubris has come to dominate perceptions of the psychology of top managers. We analyze existing research and identify issues in definitions and measurement and describe how researchers have fallen prey to hubris fascination. This leads us to put forward two options for future research: within the hubris tradition (improving measures and examining positive aspects and antecedents) and outside it (basing analyses on the self rather than the ego and using a more dynamic and holistic approach).

China's aircraft industry: collaboration and technology transfer - the case of Airbus

According to Soren Eriksson ( 2010. Vol. 9, Iss. 4; pg. 306 ) China has moved a long way in economic and industrial development during the last decades and has developed into a global player in many industries. With increased knowledge in high-technology industries, China has ambitions to move into sectors that necessitate a high level of research and development, such as the aerospace industry. China is now in the process of establishing a modern aircraft industry based on domestic efforts as well as agreements with foreign partners in the manufacturing of complete aircraft. This paper analyses what measures have been taken by Airbus in the form of technology transfer and other supportive measures to strengthen its position in the Chinese market. The findings conclude that Airbus' transfer should be looked upon as a broad spectrum of technology and knowledge transfer, which include aircraft manufacturing technology, as well as cabin crew training centre, establishment of a warehouse and suppliers 'village', an engineering centre, maintenance and various service functions.

Competitive strategy, structure and firm performance; A comparison of the resource-based view and the contingency approach

According to Eva M Pertusa-Ortega, José F Molina-Azorín, Enrique Claver-Corté ( 2010. Vol. 48, Iss. 8; pg. 1282) Decisions about the design of the organization and the competitive strategy of a firm are very important in order to gain competitive advantage and to improve firm performance. The relationship between organizational structure, competitive strategy, and firm performance has usually been analyzed using the contingency approach. The objective of this paper is to extend the relevant empirical literature of the strategy-structure-performance paradigm by comparing the resource-based view (RBV) with contingency theory. To that end, the paper seeks to examine how organizational structure affects firm performance, taking into account the relationship with competitive strategy. A sample of large Spanish firms was studied using the partial least squares (PLS) technique. The results support both the RBV and the contingency approach, but the RBV is more strongly supported. The findings show that organizational structure does not exert a direct influence on performance, but has an indirect influence through competitive strategy. This study provides an alternative formulation for organizational design theory, based on the RBV, which makes it possible to reframe the relationships between strategy and structure by analyzing the organizational structure as a valuable resource and a source of competitive advantage.

Compliance: an over-looked business strategy

According to Clelia L. Rossi. (2010. Vol. 37, Iss. 10; pg. 816) The purpose of this paper is to discuss the merits of self-regulation and the art of embedding it within an organisation, not as a secondary activity but as a core and fundamental business skill that ensures the survival of a business entity in the long term. The objective is achieved by considering compliance leadership as a strategy within a modern company. If the highest layer of stewardship of the firm (directors) explicitly accepts a conventional definition of business ethics (the law, best practice, a set of values in a specific hierarchy), then the author can measure this agreement and benchmark it against the highest known standards of corporate governance. Rational shareholders and managers will behave morally and find acceptable categorical imperatives to govern their behaviour. The paper builds on earlier research by the author that rational norms of behaviour are core business capabilities that will produce industry leaders that can change the risk landscape of the industries wherein these firms operate. This new leadership will be demanded by the rational shareholder and will transform firms into stakeholder firms capable of interacting with their environment and creating and sustaining value over the longest term.

Strategies and tactics in NGO-government relations: Insights from slum housing in Mumbai

According to Ramya Ramanath, Alnoor Ebrahim. Nonprofits'. San Francisc ( 2010. Vol. 21, Iss. 1; pg. 2 ) Relationships between nongovernmental organizations (NGOs) and government agencies have been variously described in the nonprofit literature as cooperative, complementary, adversarial, confrontational, or even co-optive. But how do NGO government relationships emerge in practice, and is it possible for NGOs to manage multiple strategies of interaction at once? This article examines the experience of three leading NGOs in Mumbai, India, involved in slum and squatter housing. We investigate how they began relating with government agencies during their formative years and the factors that shaped their interactions. We find that NGOs with similar goals end up using very different strategies and tactics to advance their housing agendas. More significant, we observe that NGOs are likely to employ multiple strategies and tactics in their interactions with government. Finally, we find that an analysis of strategies and tactics can be a helpful vehicle for clarifying an organization's theory of change

The ethics of enterprise risk management as a key component of corporate governance

According to Elena Demidenko, Patrick McNutt ( 2010. Vol. 37, Iss. 10; pg. 80 ) The purpose of this paper is twofold: first to add to the debate on good governance and ethics of enterprise risk management (ERM) and second to describe an ethical maturity scale based on duty and responsibility for practical implementation to ensure better governance. The methodology has centred on risk governance as a way for many organisations to improve their risk management (RM) practices from an ethical perspective based on responsibility and on fulfilling one's duty within the organisation. While companies in Australia, for example, are more mature than those in Russia in terms of governance systems life cycle, there are a number of common international challenges in risk governance implementation. It is the adoption of an ethical code to arrest the lack of clarity of roles ascribed to the audit committee and risk committee and management's accountability or lack thereof that remains the challenge across different jurisdictions. In attempting to implement good governance and meet the challenges, the paper introduces an ethical maturity scale as an internal measure that could be embedded in an organisation's strategy.

The role of fairness in alliance formation

According to Africa Ariño, Peter Smith Rin ( Oct 2010. Vol. 31, Iss. 10; pg. 105 ) We report on data from a revelatory qualitative case study of a failed attempt to form an international joint venture (IJV) agreement. We analyze issues related to distributive, procedural, interpersonal, and informational fairness and the roles of their occurrence in the course of the formation stage of an IJV. We find that perceptions of fairness types shape the partners' decision making logics (a property rights logic, a control rights logic, and a relational quality logic), which in turn influence the partners' evaluations of efficiency and equity of the proposed alliance and their decision on whether or not to form it. We develop propositions around this argument.