Strategic Management and Firm Survival
DOI:
https://doi.org/10.34149/jebmes.v2i1.75Keywords:
Strategic Management, Strategic Management Maturity, Strategic Leadership, Process Maturity, Leadership Maturity, Strategic Planning, Firm SurvivalAbstract
Strategic management has been praised for presenting firms with advantages. However, there is still a lack of empirical evidence for its impact on firms in difficult conditions. This study evaluates a unique situation in which firms facing the same external threat could end up differently. The relationships between strategic management and firms’ abilities to survive were investigated through a survey of 67 nickel-mining firms in Sulawesi Island, Indonesia. Each firm’s level in strategic management was measured by a questionnaire, which is based on a two-dimensional model for strategic management maturity comprising process and leadership dimensions. Meanwhile, a firm’s survival ability was assessed in six facets, including the ability to detect a threat, formulate an anticipation plan, implement the plan, maintain operations, maintain performance, and continue to exist in the future. Regression techniques were employed in the analysis. Proof of the positive effect that strategic management has on firms’ survival is delivered as the main result. It is further found that maturity in the strategic management process plays a more dominant role than strategic leadership. The effects of both dimensions in strategic management maturity on each survival ability facet are also explored.
References
Beaver, G. (2007). The strategy payoff for smaller enterprises. Journal of Business Strategy, Vol. 28 No. 1, pp. 11-17.
Cesnovar, T. (2006). The impact of strategic management on business outcomes - empirical research. Journal for East European Management Studies, Vol.11 No. 3, pp. 227-243.
Dahlgaard, J. J. and Ciavolino, E. (2007). Analyzing management factors on enterprise. The Asian Journal on Quality, Vol. 8 No. 3, pp. 1-10.
David, F. R. (2011). Strategic Management Concepts and Cases, 13th edn. New Jersey: Prentice Hall
Elbanna, S. (2009), Determinants of strategic planning effectiveness: extension of earlier work. Journal of Strategy and Management, Vol. 2 No. 2, pp. 175-187.
Gkliatis, I. P. and Koufopoulos, D. N. (2013). Strategic planning practices in the Greek hospitality industry. European Business Review, Vol. 25 No. 6, pp. 571-587.
Glaister, K. W., Dincer, O., Tatoglu, E., Demirbag, M. and Zaim, S. (2008). A causal analysis of formal strategic planning and firm performance: evidence from an emerging country. Management Decision, Vol. 46 No. 3, pp. 365-391.
Goldman, E. and Scott, A. R. (2016). Competency models for assessing strategic thinking. Journal of Strategy and Management, Vol. 9 No. 3, pp. 258-280.
Graetz, F. (2002). Strategic thinking versus strategic planning: towards understanding the complementarities. Management Decision, Vol. 40 No. 5, pp. 456-462.
Heracleous, L. (1998). Strategic thinking or strategic planning?. Long Range Planning, Vol. 31 No. 3, pp. 481-487.
Hopkins, W. E. and Hopkins, S. A. (1997). Strategic planning - financial performance relationship in banks: a causal examination. Strategic Management Journal, Vol. 18 No. 8, pp. 635-652.
Lietka, J. M. (1998). Linking strategic thinking with strategic planning. Strategy & Leadership, Vol. 26 No. 4, pp. 30-35.
Mintzberg, H. (1994). The fall and rise of strategic planning. Harvard Business Review, January-February, pp. 108-114.
Mintzberg, H. and Waters, J. A. (1985). Of strategies, deliberate and emergent. Strategic Management Journal, Vol. 6, pp. 257-272.
Norzailan, Z., Othman, R. B. and Ishizaki, H. (2016). Strategic leadership competencies: what is it and how to develop it?. Industrial and Commercial Training, Vol. 48 No. 8, pp. 394-399.
Nuntamanop, P., Kauranen, I. and Igel, B. (2013). A new model of strategic thinking competency. Journal of Strategy and Management, Vol. 6 No. 3, pp. 242-264.
O'Shannassy, T. (2003). Modern strategic management: balancing strategic thinking and strategic planning for internal and external stakeholders. Singapore Management Review, Vol. 25 No. 1, pp. 53-65.
Phillips, P., Davies, F. and Moutinho, L. (1999). The interactive effects of strategic planning on hotel performance: a neural network analysis. Management Decision, Vol. 37 No. 3, pp. 279-288.
Reid, D. M. (1989). Operationalizing strategic planning. Strategic Management Journal, Vol. 10 No. 6, pp. 553-567.
Revelle, W. (2019). psych: procedures for personality and psychological research. Available at: https://cran.r-project.org/web/packages/psych/index.html (accessed 7 November 2019).
R Core Team. (2019). R: a language and environment for statistical computing. Available at: https://www.R-project.org/ (accessed 7 November 2019).
Ripley, B., Venables, B., Bates, D. M., Kurt, H., Gebhardt, A. and Firth, D. (2019). MASS: support function and datasets for Venables and Ripley's MASS. Available at: https://cran.r-project.org/web/packages/MASS/index.html (accessed 7 November 2019).
Witek-Crabb, A. (2016). Maturity of strategic management in organizations. Oeconomia Copernicana, Vol. 7 No. 4, pp. 669-682.
Wheelen, T. L. and Hunger, J. D. (2012). Strategic Management and Business Policy: Toward Global Sustainability. New Jersey: Prentice Hall
