In theory, strategic priorities at the functional level align with and support business level strategies. Alignment of priorities is presumed to contribute to enhanced organizational performance, just as misalignment is expected to undermine performance. This study further develops and tests these theoretical conventions by examining the perceptions of general managers and manufacturing managers regarding manufacturing priorities of their business units. Based on a sample of matched pairs of manufacturing managers and general managers from 98 manufacturing plants, the hypotheses regarding the alignment-performance relationship are tested. Specifically, we tested whether the performance of the manufacturing unit is enhanced when general managers and manufacturing managers agree on strategic priorities. Furthermore, the influence of organizational factors on the relationship between alignment and performance of the manufacturing unit is studied. Results support our hypotheses that certain organizational variables moderate the relationship between alignment of priorities and manufacturing performance.
This paper examines the effect of differentiation strategy on process innovativeness in technology services organization (TSOs). In addition it examines the direct and moderating effects of two organizational constructs-operational autonomy and risk-taking propensity. Analysis of data from 102 firms in the mid-Atlantic region of the USA indicates that both differentiation strategy and operational autonomy are positively related with process innovativeness, while an organization's risk-taking propensity has no such relationship. In addition, operational autonomy moderates the relationship between differentiation strategy and process innovativeness, while no evidence was found for the moderating effect of risk-taking propensity on this relationship. Further sub-group analysis shows that in TSOs with high levels of operational autonomy, risk-taking propensity has a positive moderating effect on the above relationship. Post hoc analysis also establishes positive links among process innovativeness and firm performance. #
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