Strategic symphony: influencing pattern of strategic Integration on performance in the context of organizational culture and structure

Document Type : Articles

Author

• Rahman Ghaffari

Islamic Azad University

https://doi.org/10.22067/pmt.v11i1.71147

Abstract

1- INTRODUCTION
Most organizations, rather than having a comprehensive strategy, use a set of related strategies, each of which is designed at different levels of the company. Each strategy, in addition to responding to environmental conditions, is integrated with other levels of strategy, as well as with the strengths and competencies of the relevant business unit and with the level of the company as a single entity. this coordination can be carried out at various strategic levels with each other and with organizational elements (structure and culture). on the other hand, each level must have complementary strategies in order to reinforce each other, which is called horizontal integrity. each level of strategy has close coordination with other levels of strategy, and if the whole company wants to succeed, these levels should be integrated. garterl and Schenk stated that identifying factors is an important tool to understand how to achieve a successful alignment between company strategies and partial strategies such as IT strategy, human resource strategy, production strategy, financial strategy, marketing strategy, and so on. Therefore, in order to succeed on the path of achieving the organizational goals and high performance, vertical and horizontal integrity in business is crucial, and it is one of the most important discussions and concerns of organizational managers.
2- THEORETICAL FRAMEWORK
By reviewing the theoretical literature in the context of ​​strategy fitness, significant points have been extracted. one of these issues is the importance of fitting and integrating partial strategies with organizational strategies. This integrity will result in coordination between the organizational macro policies and its partial policies, so the entire company grows in a balanced way. on the other hand, coordination, alignment and integrity between partial strategies (horizontal integrity) will lead to more attention to the synergy of resources in order to achieve competitive goals. in this regard, organizational structure and culture of the company should be in line with the strategies. adaptation to the outside environment explains the law of organizational thermodynamics. based on organizational thermodynamics, organizations will remain in a competitive environment if they match their internal conditions with outside requirements. one of the remarkable theoretical gaps in past literature is that past research has often studied only one kind of integration. according to the aforementioned, the main purpose of this research is presenting a model that verifies the vertical and horizontal integrity between the strategies of the company and investigating the effectiveness of this integrity on performance.
3- METHODOLOGY
This research has been carried out with a mixed approach and implemented in two phases. in the first phase, using semi-structured interviews, 18 experts (5 faculty members of the strategic and marketing management, 4 executive consultants in the field of strategy and management of companies and 9 organizational managers and assistant) and by means of technique of thematic analysis, a conceptual model has been extracted. In this model, the strategy of the company has been shown to be integrated with the partial strategies, and also the organizational structure and culture affect this integration. finally, all of the variables of this model affect the organizational performance.
4- RESULTS & DISCUSSION
Based on data analysis in PLS software, all hypotheses have been confirmed. The results of confirmatory factor analysis also indicate the validity of the tool of this research. the diagram below shows the test of the hypotheses of this research.
5- CONCLUSIONS & SUGGESTIONS
Based on the results, a conceptual model of research demonstrates the impact of strategic integrity on organizational performance through organizational structure and culture. the results of the hypotheses indicate that partial strategies (human resources, production, finance, IT, etc.) have a vertically integration with corporate strategy. That is, partial strategies are in line with the company's strategy, and human resource, financial, marketing, sales, production, IT, etc. strategies are emerging from the company's main strategy. there is the highest vertical integration between the IT strategy and the company's strategy and production strategy has the lowest integration in this respect. the importance of the relationship between partial strategies with corporate strategy in the form of vertical integration comes from the fact that if this alignment does not exist between strategies, some kind of strategic dispersion is created and the focus on achieving the main and major goals of the company is neglected, so each department, regardless of the main goals of the company seek to achieve its specific goals. based on the results of the hypotheses, all partial strategies such as human resource, financial, information technology and production strategy are interconnected and mutually influential. this means that these strategies are designed in an integrated and coordinated system and there is a strategic horizontal alignment between them. it can be argued that there is a horizontal integration between segmental strategies. to achieve horizontal integration, it is recommended that regular meetings between the unit managers and the monthly meeting with strategic council with the presence of the company's CEO are held in order to accurately track the achievement of organizational goals and plans.

Keywords

• Strategic Symphony
• Organizational Structure
• Organizational culture
• Organizational performance

References

Anders, P. (2016). How does a foreign subsidiary’s differentiation strategy fit competitive dynamics and mandate? European Business Review, 28(6), 690-708.

Arabi, M., & Abedi, R. (2012). The Relationship between financial strategies, investment, financing, dividing profit and turnover capital with organizational performance: the exquisite pharmaceutical company. Management Researches in Iran, 15(4), 18-45. (in Persian)

Arabi, M., & Abedi, R. (2011). Relationship between business strategy and financial strategy with organizational performance. Journal of Industrial Management Studies, 18(19), 239-277. (in Persian)

Arabi, M., & Fayyazi, M. (2009). Research strategy in human resource management. Quarterly Journal of Human Resource Management Researches, Imam Hossein university of medical sciences, 4(88), 1-23. (in Persian)

Arabi, M., & Rezvani, H. (2008). Strategic alignment between business strategy and marketing strategy with organizational performance: research on pharmaceutical companies in Iran. Quarterly of Iran Management Sciences, 2(5), 71-97. (in Persian)

Aversano, L. et al (2012). A literature review of Business/IT Alignment Strategies. Journal of Procedia Technology, 5(2), 462 – 474.

Bagheri, M., & Asghari, F. (2013). The Coordination between business-level strategies and market orientation in the framework of organizational life-stages, Marketing Management Quarterly Journal, 5(19), 126-109. (in Persian)

Bashir, Y. (2016). Implementing the strategy, the missing ring in the process of implementing (implementing) strategy. Journal of Parliament and Strategy, 23(86), 269-237

Bazrafshan, H. (2015). Study of strategic alignment of business and information technology from the point of view of managers. Journal of Management of Organizational Culture, 14(2), 396. -388. (in Persian)

Beckers, R. et al. (2015). Aligning corporate real estate with the corporate strategies of higher education institutions. Journal of Facilities Management, 33 (13/14), 114-138. (in Persian)

Biriya, H., & Jam, M. (2011). The Challenge of business equilibrium and information technology: implementing enterprise architecture for strategic matching. Journal of Production and Operations Management, 1(1), 102-87. (in Persian)

Brooke, D.; Mark, K., & Thomas, N. (2015). Innovation strategy in the US: top executives offer their views. Journal of Business Strategy, 36(1), 3-13

Carbaranzad, M. (2012). The alignment of production strategy with BPR in implementing ERP for measuring performance in industries of continuous production. Journal of Information Technology Management, 4(11), 110-93. (in Persian)

Daft, R. L. (2016). Organizational theory and design: 14th edition. South- Western, Cengage Learning, United State.

DeCenzo, D.; Robbins, P., & Verhulst. S. (2016). Fundamentals of human resources management: 12th edition. Wiley Publication, New York.

Esmaeel, R.; Zakuan, N., & Jamal N. (2018). Understanding of business performance from the perspective of manufacturing strategies: fit manufacturing and overall equipment effectiveness. Procedia Manufacturing, 22(18), 998-1006

Estève, A. et al. (2018). Easy alignment strategy for multi-level micro patterning. Microelectronic Engineering, 193(5), 7-12.

Fabi, B. et al. (2009). Strategic alignment of HRM practices in manufacturing SMEs: a gestalts perspective. Journal of Small Business and Enterprise Development, 16(1), 7-25

Hessen, B. (2012). The strategic alignment process: management for professionals. Publish of Springer-Verlag Berlin Heidelberg.

Hoffer, M. (2017). Making strategy fit the operating environment: How a strategic partnership can positively impact performance. Strategic Direction, 33(10), 14-16

Jafare, M., & Babak, R. (2010). Conflict management strategies and organizational structure. Business Management Quarterly, 6(2), 214-189. (in Persian)

Hadizadeh, A., & Militand, H. (2011). Coordination of strategies and organizational values. Quarterly Journal of Human Resource Research, 3(4), 54-29. (in Persian)

Harrison, T., & Bazzy, J. (2017). Aligning organizational culture and strategic human resource management. Journal of Management Development, 36(10), 1260-1269.

Hejazi, R., & Fotouhi, N. (2018). Investigating the coherence between competitive organizational strategy, organizational plan and management accounting system with organizational performance: constraints approach in the chemical and pharmaceutical industries and motor & automotive vehicles. Financial Accounting Research Journal and Auditing, 2(12), 61-32. (in Persian)

Lichtenthaler, U. (2007). Hierarchical strategies and strategic fit in the keep-or-sell decision. Journal of Management Decision, 45(3), 340-359

Manian, A.; & Saremi, M., Arabzorkhi, A. (2008). Presentation of a conceptual model for assessing organizational readiness for strategic alignment of information and business technology. A Case Study of Iran Telecommunication Research Center, 1(1), 83-104. (in Persian)

Mills, R. et al. (2006). Application of the strategic alignment model and information technology governance concepts to support network centric warfare. Journal of strategy Research, 12(2), 1102-1123.

Nayebzadeh, S., & Salari A. (2014). The Relationship between the appropriateness of strategy and organizational structure with performance in family companies (case study of family companies based in industrial towns of Yazd province). Journal of Accounting and Audit Management, 3(10), 11-1. (in Persian)

Nikokar, G., & Hakim, A. (2012). Strategic alignment pattern of knowledge management in the organization. Management researches in Iran, 16(1), 189-167. (in Persian)

Moshbbaki, A., & Mousavi, M. (2012). The Relationship between strategic coordination between business strategies, human resources strategies and organizational structure. Organizational Culture Management, 10(1), 60-33. (in Persian)

Poursadegh, N. (2016). Investigating the alignment of the organization's strategies with marketing strategies in the top companies of food industry of the country. Quarterly Journal of Management Future Studies, 24(90), 13-1. (in Persian)

Prashant, S. et al. (2017). Performance impact of supply chain partnership strategy-environment co-alignment. International Journal of Operations & Production Management, 37(7), 927-949.

Rafiee, M., & Zahedi, S. (2012). Improving organizational performance through strategic coordination between HR strategies, ethical decision making and organizational culture: research in research organizations of the ministry of jihad-e-agriculture. Journal of Organizational Culture Management, 10(1), 32-5. (in Persian)

Righeimer, J., & Energy, M. (2018). Aligning human resources & strategic plans. Journal of Management and Business Research, 21(8), 22-35.

Rita, J. et al. (2018). Hybridization processes in an introduced subpopulation of an endangered plant: management strategies to guarantee the conservation of helosciadium Bermejo. Journal for Nature Conservation, 41, 26–34.

Robbins, P. E., & Judge, T. (2017). Organizational behavior: 17th edition. Pearson Publication, New York.

Sayyadi, S., & Mohammadi, M. (2009). The Theoretical approach to human resource strategy. Management Quarterly, 6(13), 56-46. (in Persian)

Schermerhon, J., & Osborn, R. (2014). Organizational behavior: 13th edition. Pearson Publication, New York.

Shamekh, F. (2008). Business-IT strategic alignment concept in theory and practice. Master thesis of management, department of applied information technology, IT University of Goteborg. (in Persian)

Srivastava, P. et al. (2017). Performance impact of supply chain partnership strategy-environment co-alignment. International. Journal of Operations & Production Management, 37(7), 927-949.

Srivastava, P. et al. (2016). Performance impact of supply chain partnership strategy-environment co-alignment. International Journal of Operations & Production Management, 37(7), 927-949.

Srivastava, A., & Sushil, K. (2016). Alignment: the foundation of effective strategy execution. International Journal of Productivity and Performance Management, 66(8), 1043-1063.

Teresa, H., & Joshua, D. (2017). Aligning organizational culture and strategic human resource management. Journal of Management Development, 36(10), 1260-1269.

Thomas, G. M. (2015). The impact of business strategy on leadership. Journal of Strategy and Management, 8(2), 110-126.

Zhao, B., & Xing, E. (2017). Business topic fitness models for word alignment. Journal of Strategy Management Studies, 9(1), 108-119.