Strategic planning

This study discusses the theoretical and methodological issues in the diversification-performance literature and presents a meta-analysis of 50 studies with 169 separate effects of the diversification-performance relationship. The overall objective of this study was to answer the primary question: What is the relationship between diversification strategies and corporate performance? In addition, this study aimed to determine if the inconsistencies found in the diversification-performance relationship across studies is attributable to moderator variables such as: (1) measurement of diversification, (2) measurement of performance, (3) source of data, (4) time period, and (5) industry effects. A final objective of this study was to illustrate the usefulness of meta-analytic techniques for reviewing and synthesizing empirical literature in strategic management. The results suggest that related diversified firms have higher accounting- and market-based returns and lower levels of total risk than unrelated diversified firms. These results are consistent with the predictions of agency theories of diversification. The results further indicate that related diversifiers have lower levels of systematic risk than unrelated diversifiers, a result consistent with the predictions of the traditional strategic management perspective of diversification. The results of the subgroup and combined meta-analyses of moderator effects indicate that the use of different measures of diversification (e.g., Rumelt's categories vs. SIC-based continuous), different measures of performance (accounting- vs. market-based), and source of data (e.g., primary vs. secondary) significantly influenced the relationship between diversification strategies and performance. The relationship was not affected by the time period of studies or industry effects. The findings are discussed in terms of their implications for practice and for future research.

The impact of executive cognitive bases and values on corporate strategic change was examined in a longitudinal study of the computer hardware industry. Corporate strategic change was separated into pattern and magnitude dimensions as suggested by Ginsberg (1988). These dimensions complement the logic of Tushman and Romanelli (1985) who suggest that organizations proceed through long periods of stability or adjustment, punctuated by periods of metamorphic change or reorientation. I proposed that executive cognitive bases and values would be associated with strategic reorientation but not strategic adjustment since executive perceptions and responses are the internal driving forces that direct and redirect organizations (Romanelli & Tushman, 1988). Panel data analysis techniques were used to test the hypotheses developed in this study. Corporate strategic reorientation and adjustment were operationalized by changes in unrelated and related diversification, and changes in between-stage and within-stage vertical integration, respectively. The mean organization tenure and functional background heterogeneity of top management teams were used as proxies for executive cognitive bases and values. Results provided overall support for the hypotheses. Mean organization tenure was negatively related to unrelated diversification change, while neither mean organization tenure nor functional background heterogeneity were associated with related diversification change. Functional background heterogeneity was positively related to between-stage vertical integration change, however, contrary to expectations, it was negatively related to within-stage vertical integration change. These findings confirm and extend the literature which relates managerial characteristics to strategic change.

This dissertation assessed two aspects of entrepreneurial scanning related to new ventures. The first was the information search and analysis these entrepreneurs performed when they made certain basic decisions necessary to start most business prior to commencement of operations. The second was the ongoing information search activities of entrepreneurs who had started childcare businesses and were managing them in their first few years of operation. In addition, this dissertation assessed the extent these scanning activities were consistent with a dual process theory of reasoning. Finally, the limitations of the study and suggested future research directions for research of entrepreneurial scanning were discussed. The results suggest an entrepreneur's scanning behavior at the start of the business may be different from scanning behavior that occurs once the business has been operating for a period of time. The need for cognition, exposure to statistical thinking and intelligence (operationalized in this study as the amount of formal education) were positively related to the kind of information search and analysis undertaken by the entrepreneur at the startup of the business that Kahneman (2003) and others describe as System 2 reasoning. The accessibility of information and the amount of formal education were positively related to scanning that was done in periods subsequent to startup by these childcare entrepreneurs. Work-family conflict was negatively related to scanning during this period.

This dissertation examines the stock market reaction to 474 announcements of hiring chief information officers (CIOs) in the 1987--2002 period, and firm performance for periods up to two years following the CIO appointment. The study reports that the announcements are associated with significantly positive abnormal returns (0.48 percent). The returns are more pronounced when the new CIO is hired from an IT leader firm (1.94 percent). Abnormal returns are significantly positive related with the CIO's level of education and high-technology firms, and negatively related with firm size. In addition, there is no significant difference in market reaction between the announcements that publicize the creation of a new position and those that imply the filling of an existing position with new hires. Further, the study finds an association between the appointment of the new CIO and subsequent improvement in the accounting measures of profitability. Findings reveal that CIO firms outperform their matched firms and their industry counterparts for the two years following the announcements relative to the year prior to the CIO appointment.

Not much is known about factors of firm performance in emerging economies (EEs). This study investigates two variables that individually and in combination are posited to affect firms in these turbulent environments: receptivity to the influence of trade associations and dynamic knowledge capabilities. It examines the impact of these determinants on three self-reported measures of performance: innovation adoption, a particularly important indicator in EE environments; and two other dependent variables traditionally used in strategy research: profitability (measured as return on sales), and comparative performance (a self-rating of the firm's performance in comparison to its main industry's competitors). The study also attempts to shed light on the effects of perceived environmental uncertainty as a potential moderator. Five hypotheses drawn from the literature are tested with moderated hierarchical regression. Results indicate support for the two main hypotheses in the case of the innovation adoption measure. Moderation effects are also found in the association between receptivity to the influence of trade associations and innovation adoption. Finally, the study contributes with proposed scales for the two independent variables, which are tested and validated, and with a re-examination of the existing scale for perceived environmental uncertainty.

The purpose of this mixed method study was to understand how demographic fit, organizational fit, and group fit influenced secondary school assistant principal (AP) selection and assimilation for candidates who completed the Paradise School District (pseudonym) leadership training program during the 2004-2005 to 2008-2009 school years. However, the results indicated that Hispanic candidates were selected at a higher rate than other groups of candidates. The results also indicated that Black candidates were selected at the same rate as the average for all candidates ; however these results may be misleading because Black candidates were disproportionally over-represented in the study sample. Regarding organizational fit, the study results suggested that candidates who indicated one of three specific Myers-Briggs personality types (ESTJ, ENTJ, or ENFP) were selected at higher rates than candidates of the other 13 personality types. The suggested personality traits for secondary school APs found in this study included (a) Extroversion (E), (b) Feeling (F), and (c) Judging (J). Candidates who referenced more than one hiring administrator, at or above the level of principal, were selected at higher rates than candidates who referenced only one principal. The inverviews suggested balancing the demographics of a school's administrative staff, using gender and race/ethnicity, to the the community the school serves was related to selection. The interviews also disclosed that Black, Hispanic, and candidates with expertise in operations and curricula might be suggested over other candidates. The interviews also suggested that networking, sponsorship, interview impressions, and references were related to the selection processes.

This study explores the strategic thinking and strategic planning efforts in a department, college and university in the southeastern United States. The goal of the study was to identify elements of strategic planning processes that meet the unique organizational features and complexities of a higher education institution. The study employed a holistic, multi-case study approach, wherein three single case studies were conducted with one unit of analysis. The findings in each case were then compared and contrasted to provide more evidence and confidence in the findings. The findings are framed by two constructs : strategic planning and strategic thinking. The conceptual framework for the study identified the distinction between the systematic nature of strategic planning and the more integrated perspective of strategic thinking. Traditional business based strategic planning model uses an analytical process, logic, linear thinking and a calculating process to develop a plan. Strategi c thinking places a premium on synthesis, systems thinking and a social cognitive process that results in an integrated perspective of the organization. The resluts of this study indicate that the use of the Strategic Thinking Protocolà is suitable for higher education organizations to create a learning environment, to implement creative and emergent strategies, that result in the organization's positioning and responses to a rapidly changing environment. The strategic thinking process in both the department and college cases were found to be effective in altering the attitudes, values, beliefs and behaviors of the participants. The integration of the plan is an ongoing process with strong beginnings in both the department and college cases.

Economic game theory has been a challenge to traditional models of selfish human nature. Resource acquisition games, such as the dictator game, which have been primarily played by adults, have revealed that humans are inclined to share even when it is not in their best interest to do so. Few studies have been conducted on the development of resource distribution in children, and fewer still have explored the effect of context and level of involvement of a second player in such games. In the current study, 179 children from kindergarten, first, and second grades participated in a modified dictator game with another player. Children were randomly assigned to one of four conditions; a control condition, where they played individually with an anonymous player, or one of three experimental conditions with two players who each played with varying levels of involvement with the second player. It was found that kindergarteners shared significantly less across conditions than first and second graders, with first and second graders sharing similar amounts. The presence of another player significantly increased the amount of sharing for all grades. Additionally, second players shared significantly less than first players. Developmental and contextual patterns of sharing are discussed.