Strategic Adaptability and Firm Performance: A Market-Contingent Perspective

McKee, Daryl; Varadarajan, P. Rajan; Pride, William M.

doi:10.2307/1251340

Cited by 381 publications

(190 citation statements)

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“…The magnitude of adaptive capability depends on changes in market/product expectations [53], and the firm's ability to meet those expectations with its existing resources and capabilities [54]. Change management is a structured process for managing organizational and/or technological change.…”

Section: Adaptive Capabilitymentioning

confidence: 99%

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The Impact of Managerial and Adaptive Capabilities to Stimulate Organizational Innovation in SMEs: A Complementary PLS–SEM Approach

2017

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Abstract:The aim of this study is to empirically explore and propose a rigorous model for the positive impact of managerial capability (in terms of decision-making, management style, people development, and succession planning) and adaptive capability (in terms of horizon scanning, change management, and resilience) on organizational innovation in the context of small and medium-sized enterprises (SMEs). The study uses partial least squares structural equation modeling (PLS-SEM) to test the model hypotheses, and importance-performance matrix analysis (IPMA) to provide information regarding the significance and relevance of the dimensions of managerial and adaptive capability in explaining organizational innovation in the proposed model. The empirical data is gathered through questionnaires from 210 SMEs. The results show a strong and significant relationship between managerial capability, adaptive capability, and organizational innovation. This study found that all of the dimensions of managerial capability and adaptive capability help to develop and improve the performance of organizational innovation in SMEs. The study concludes with a comprehensive discussion of the research limitations, and provides suggestions for future research.

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Section: Adaptive Capabilitymentioning

confidence: 99%

“…Change management is a structured process for managing organizational and/or technological change. Therefore, any change in the firm's previous resource base and new resource combinations correlate with a change in its adaptability [53].…”

Section: Adaptive Capabilitymentioning

confidence: 99%

The Impact of Managerial and Adaptive Capabilities to Stimulate Organizational Innovation in SMEs: A Complementary PLS–SEM Approach

2017

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“…The authors choose the Miles and Snow typology as it focuses on the 'dynamic process of adjusting to environmental change and uncertainty' (Miles and Snow, 1978: 3), and effectively takes into consideration the trade-off between external and internal strategic factors (McKee et al, 1989).…”

Section: Strategic Orientationmentioning

confidence: 99%

In search of the drivers of high growth in manufacturing SMEs

2006

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Though considerable attention in the extant literature has been devoted to growth and performance of firms, there is a dearth of research on high growth firms. Furthermore, the majority of literature in this area focuses on large firms while research on high growth small firms is underdeveloped. This paper investigates the drivers of high growth in manufacturing SMEs. Following a number of focus group interviews with six managing directors of manufacturing firms, a number of drivers of high growth were identified and investigated in a sample of 207 manufacturing SMEs. The results of this study indicate that high growth firms place a greater emphasis on external drivers such as strategic orientation, their operating environment and the use of e-commerce compared with firms having static or declining sales. The analysis shows that high growth firms compete largely on the basis of price. While high growth firms have increased their sales by over 30% during the past three years or longer, it is questionable if manufacturing firms can sustain their competitive advantage without recourse to greater research and development, and innovation in the longer term.

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“…Innovation is the ultimate outcome of an organization's effort to adapt to its environment; i.e., developing new forms that are ecologically optimal. This adaptive capability should be evidenced by an increased intensity of new product introductions (McKee et al, 1989). Additionally, market-focused strategic flexibility is expected to result in higher performance, particularly for firm's operating in dynamic environments (Johnson et al, 2003).…”

Section: Consequences Of Market-focused Strategic Flexibilitymentioning

confidence: 99%

“…Market-focused strategic flexibility is the organizational capability to respond to perceived market change (Johnson et al, 2003). Development of the measure was guided by prior research in strategic adaptability (McKee et al, 1989) and flexibility (Grewal and Tansuhaj, 2001). Innovation captures the organization's ability to introduce new products to the market.…”

Section: Outcome Measuresmentioning

confidence: 99%

Achieving adaptive ends through equivocality: A study of organizational antecedents and consequences

Neill¹,

Rose²

2007

Journal of Business Research

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Confronting complex situations is the hallmark of strategic decision-making. While these situations may be perceived as equivocal, organizations must cope, act, and thrive within such ambiguities. This study explores the manifestation and regulation of equivocality during strategic marketing decision-making. The results indicate that organizations that tolerate ambiguity perceive greater equivocality in problem situations and exhibit greater adaptive behavior; however, the findings come with a caveat: while experienced firms may enjoy these benefits, the situation is more complex for firms with limited product-market knowledge.Keywords: Marketing decisions; Equivocality; Innovation; Performance; Knowledge In dynamic environments, understanding is transitory. Given the novel, complex, and indefinite nature of strategic decisions (Mintzberg et al., 1976), organizations may benefit from an open and broad interpretive capability in order to effectively model and adapt to external forces. Formulaic thinking is better suited to closed-systems where maintenance and stability are present and learning is not necessary. The challenge is in managing and remaining attuned to the equivocal inputs that manifest during strategic decision-making in information intensive environ ments while not succumbing to equivocality's befuddling effect. While prior studies (e.g., Day, 1994;Sinkula et al., 1997) suggest that the organization should broaden its perception and be open-minded, unresolved is the mechanism that allows for the emergence of equivocality without succumbing to its disorient ing nature, which might dampen performance.This study examines the relationship between organizational interpretation and action by capturing both the emergence and effect of equivocality during strategic marketing decisionmaking. The paper directly examines equivocality and its ante cedents and consequences. Equivocality is defined as a problem situation with multiple, possibly contradictory, interpretations that manifest during decision-making (Daft and Lengel, 1986). When viewed as interpretation systems (Daft and Weick, 1984), organizations may be challenged when confronted with equivo cality. Thus, several questions guide this research: 1) what are the organizational levers to equivocality and strategic change? 2) how do organizations regulate equivocality during strategic marketing decision-making? and 3) what are the consequences of equivocality? To examine these questions, we first present a conceptual framework and develop hypotheses, then describe the study method. After reporting the analyses and results, we discuss the study's findings, limitations, and implications.

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Strategic Adaptability and Firm Performance: A Market-Contingent Perspective

Cited by 381 publications

References 0 publications

The Impact of Managerial and Adaptive Capabilities to Stimulate Organizational Innovation in SMEs: A Complementary PLS–SEM Approach

The Impact of Managerial and Adaptive Capabilities to Stimulate Organizational Innovation in SMEs: A Complementary PLS–SEM Approach

In search of the drivers of high growth in manufacturing SMEs

Achieving adaptive ends through equivocality: A study of organizational antecedents and consequences

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