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*** PURPOSE The purpose of this paper is to address the following question: How do strategy implementation obstacles relate to each other and affect strategy implementation? *** METHODOLOGY The research methodology is qualitative and based on an extensive review of the literature and on an in-depth case study analysis. *** FINDINGS This paper draws two main conclusions. The first is that the many obstacles that impact the strategy implementation process can interact and be strongly interrelated in dynamic and complex manners. The second is that obstacles can lead to and reinforce other obstacles, eventually forming long chains of blockages. *** ORIGINALITY Strategy implementation remains a difficult task with improbable success. This paper provides a contribution to an explanation on why so many strategy implementation efforts fail. It is one of the very few papers addressing the issue of the relationships between strategy implementation obstacles. ***************************************************************************************** FREE COMPLETE VERSION OF THE PAPER: ***************************************************************************************** VERSION OF RECORD/EDITOR PUBLISHED VERSION:
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Cândido, Carlos J.F and Santos, Sérgio P. (2019) Implementation obstacles and strategy
implementation failure, Baltic Journal of Management, Vol. 14, No. 1, 39-57.
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Emerald Publishing Limited.
Implementation obstacles and strategy implementation failure
Purpose – The paper addresses the following question: How do strategy implementation
obstacles relate to each other and affect strategy implementation?
Method The research methodology is qualitative and based on an extensive review of the
literature and on an in-depth case study analysis.
Findings – This paper draws two main conclusions. The first is that the many obstacles that
impact the strategy implementation process can interact and be strongly interrelated in
dynamic and complex manners. The second is that obstacles can lead to and reinforce other
obstacles, eventually forming long chains of blockages.
Originality – Strategy implementation remains a difficult task with improbable success. This
paper provides a contribution to an explanation on why so many strategy implementation
efforts fail. It is one of the very few papers addressing the issue of the relationships between
strategy implementation obstacles.
Keywords: strategy implementation, organizational change, obstacles, relationships,
causality, failure, case study
JEL: M10, M19.
... The 7-S model identifies the seven factors as strategy, structure, systems, staff, skills, style/culture, and shared values. Strategy is the plan of action an organization prepares in response to, or anticipation of, changes in its external environment (Cândido & Santos, 2019). Structure refers to the way in which tasks and people are specialized and divided, and authority is distributed; how activities and reporting relationships are grouped; the mechanisms by which activities in the organization are coordinated (Nandakumar et al., 2010). ...
... Following the study by Manyeki et al., (2018) the universities must put efforts to provide different programs that are solving certain market problems (staying relevant). Therefore innovation and creativity is essential in order to attract customer loyalty (Cândido & Santos, 2019). Through differentiation a university is able to charge premium prices whenever the customers can find value for the services they receive (Ahmed et al., 2018). ...
... According to Cândido and Santos (2018), a lot of companies failled in reaching effectivennes of strategic implementing due to managerial inability to realize the strategy they have designed. As many as 35% of the causes of failure are poor leadership, weak employee commitment, and ineffective resource allocation (Alharthy et al. 2017). ...
... Therefore, the implementation of the policy as a whole needs to be seen by questioning whether the implementation of the policy is in accordance with what has been determined. This conformity measurement can be seen from two things, namely: a) From the process, which can be checked at the specific The level of effectiveness of strategy implementation in companies which operates in testing service, inspection and certification became the main requirement to win the competition (Cândido & Santos, 2018), because an increasing industrial growth has demanded the highest level of security (Almeida & Santos, 2020). Leadership is one of the main factors for every company to achieve competitive advantage, it is due to leader policies, behavior, and decisions will determining the level of company success and growth . ...
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Nowadays, effectiveness strategic implementation has challenged various company due to unpredictable business situation. Therefore, the company should measure how accurate the effectiveness strategy which was implemented. This study aims to analyze the effect of leadership, resource allocation, and employee engagement on it through organizational commitment. Saturated sampling technique used in this study by the amount of 52 employees recorded as participants. Previously, the data were collected through online method and assisted by g-form questionnaires, then it analyzed with Structural Equation Model (SEM) technique from IBM AMOS 23.0 software. The study found that in the direct effects there are three relationships stated not significant, but fourth of them. Further, mediating contributions of organizational commitment only success in the relation of employee engagement on effectiveness strategic implementation, and the other are rejected due to not contributes optimally.
... Failure to involve employees in a change process can result in lower work engagement as dissatisfied employees may distance themselves from the organization's success (Thomas, Tendai, Zororo, & Obert, 2019). Seventy percent of organizations fail in their change initiatives, resulting in resistance to change from stakeholders (Cândido & Santos, 2019;Gonzalez-Porras, Heikkinen, Kujala, & Tapaninaho, 2021). However, limited research exists that discusses the assessment of managers' strategies to include employees in the change process, especially in Nigeria's public sector. ...
Seventy percent of organizations fail in their organizational change initiatives because of failure to involve employees in the change process. Some managers lack the strategies to implement change initiatives successfully. Using Kotter’s eight-step change model as the conceptual framework, this qualitative case study was conducted to explore public sector managers’ strategies to include employees in implementing organizational change. Semi-structured interviews were used to identify public sector managers’ strategies that include employees in implementing organizational change. Interviews were conducted with eight participants who met the inclusion criteria for this study. Data analysis included methodological triangulation and Yin’s five-phase data analysis. The five resulting principal themes are effective communication, creating and sustaining employee engagement, leadership style effect, developing training programs and processes, and strengthening organizational culture. The findings indicate that managers should focus on how well their subordinates understand the overarching goals of the vision and mission of change initiatives. These findings have potential implications for positive social change that include catalyzing employees to have a healthier attitude at work, have a better sense of work–life balance, and have a sense of belonging. Understanding the contribution of an engaging workforce may enable organizations to improve performance and profits by catalyzing monetary and non-monetary contributions to benefit citizens.
... While, in real-life situations, it is very evident that the success rate of strategy execution is remarkably low (Hrebiniak, 2006;Bernardo 2017;Cândido, 2019). ...
... The RBV approach depicts a business organization as a collection of particular resources and capabilities that can be utilized to obtain competitive superiority through strategy implementation (Donnellan and Rutledge, 2019). Past studies have established that the success rate for strategy implementation such as customer-focus is just about 10% to 30% (Cândido and Santos, 2019;Gebczynska, 2016). This is rather minimal bearing in mind the measure of resources and financial spending business organizations place into developing strategies such as customer-focus (Estensoro et al., 2022). ...
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Purpose-The purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV). Design/methodology/approach-This research study implemented a survey strategy to gather data from 255 respondents on the registered list of Ghana Enterprise Agency (GEA) in the eastern region of Ghana. Scales used to gather data were operationalized from previous research studies. A structural equation modeling (SEM) path analysis was used to estimate the impact of customer-focus on the performance of SMEs. Findings-The outcomes of this study indicate that customer-focus has a significant positive impact on SME performance, hence backing the current demand for investigating the distinct influence of customer-focus on SME performance. The results show that customer-focus has a positive and significant relationship with financial performance, customer performance, internal business process performance and learning and growth performance, thus supporting the literature on the positive impact of customer-focus on SME performance. Therefore, customer-focus determinants used in this study, including co-creation, networking ties, customer insight and artificial intelligence marketing (AIM), are critical to the optimization of SME performance. Research limitations/implications-Notwithstanding the importance of this research study mentioned earlier, the study has limitations. Notably, the sample size of this study can be increased to capture SME respondents in other geographical zones that were not included in this study. Future research studies may address how business environment conditions moderate the relationship between customer focus and performance, and also the cause-effect of the relationship between customer focus and business environment conditions on SME performance. Practical implications-The practical implications consist of two main items. First, this study empowers SME owners and managers to develop a customer focus technique as a central strategic goal in their quest for SME performance optimization. Second, SME owners and managers should progressively exploit the four determinants of customer focus which include co-creation, networking ties, customer insight and (AIM in order to accrue important resources for effective utilization of their customer focus competences as a way to enhance their performance. Social implications-This study is targeted at the sound development of SMEs to bring about poverty alleviation and employment. Poverty, unemployment and poor living standards are recognized as vital social challenges in most emerging economies. The establishment of customer focus as an important strategic capability provides opportunities for SME survival, profitability and growth. Originality/value-Generally, the findings of this research study provide a strong backing to RBV perspective and the proposition that customer-focus and its determinants (i.e. co-creation, networking ties, customer insight and AIM) should be acknowledged as a vital strategic resource for optimizing the performance of SMEs. This research study also provides new knowledge contribution to the present body of Impact of customer-focus on SME performance © Kwabena Abrokwah-Larbi. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http:// Awuku-Larbi, Yaw is acknowledged for his contribution to the statistical analysis and its interpretation. knowledge on customer-focus orientation and management literature, particularly in the context of an emerging economy.
... The implementation of a strategy is a dynamic process. Strategic management in the public sector is a new practice model in public sector management (especially in the government) and a new research paradigm (Cândido and Santos, 2018). Strategic management comes from the private sector, which exists to help the private sector pursue its best interests in line with its objectives (Henry, 2021). ...
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The application of strategic management theory is lacking in the public sector. Relative to the public sector, the private sector has implemented strategic management approaches with great success. This study uses case studies of individual organizations to explain the definition and characteristics of strategic management theory, as well as the problems and crises that can arise. The study shows that the external environment of the public sector is complex and unstable. The government and the corresponding organizations should adapt quickly to the actual situation so that the capabilities of the members of public organizations can be improved.
In the current business environment, which is greatly dynamic and competitive, business organizations are continually striving for expanding their competence and financial performance through improving almost every facet of their business––product/service quality, customer satisfaction, customer retention, productivity, line filling strategies, and others. In this sense, success and failure of organizations depend on the extent of precision of their decisions. Organizations are engaged with data to extract insights, identify trends and make decisions at different levels; and also, many of them learn how to utilize the power of data. Analytics can enable them to derive conclusions, make predictions, and ascertain actionable insights in a contextual and time-bound manner. It helps to examine data from multiple perspectives and gives visualizations by using different frameworks and platforms such as IBM Watson, Tableau, and R. The chapter presents the role of analytics in decision-making processes and assess the effectiveness of decisions upon their implementation, so the corrective measures can also be inserted. As decision making is a continuous business process, analytics accelerates it and gives organizations a pace to keep updated with changing business scenarios. Thus, this chapter presented a decision-making framework exhibiting how decision-making functions as an ongoing process. Different contexts and cases have been used to establish the relevance of each step of the framework.KeywordsAnalyticsDecision makingData scienceData-based decision makingModel buildingBusiness analytics
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This study aims to analyze the effect of leadership, resource allocation and employee engagement on the effectiveness of strategic implementation with organizational commitment as a mediating variable. The amount of sample is 52 employees with sampling technique is saturated sampling method. This study uses path analysis SEM (Structural Equation Modeling) which is processed with the IBM SPSS AMOS V23 program. The results show that leadership has a direct insignificant effect on organizational commitment, resource allocation has a direct and insignificant effect on organizational commitment, employee engagement has a direct influence on organizational commitment, leadership has a direct influence on the effectiveness of strategy implementation, resource allocation has a direct influence on organizational commitment. not directly significant on the effectiveness of strategy implementation, Employee engagement has a significant direct effect on the effectiveness of strategy implementation, Organizational commitment has a significant direct effect on the effectiveness of strategy implementation, Organizational commitment is unable to mediate the influence of leadership on the effectiveness of strategy implementation, Organizational commitment is unable to mediate the influence of resource allocation power on the effectiveness of strategy implementation, organizational commitment is able to mediate the effect of employee engagement on effectiveness of strategy implementation.
A proposta deste artigo é compreender a comunicação interna no processo estratégico pela lente da estratégia como prática social. Foi realizado um estudo de caso em uma indústria multinacional brasileira por meio de entrevistas semiestruturadas em profundidade e análise documental interna. A análise de conteúdo compreendeu três etapas: estabelecimento de parâmetros para interpretação das informações coletadas de acordo com o referencial teórico; exploração do material (entrevistas, documentos e observação) e construção das unidades de análise; e desse material foram extraídos conteúdos manifestos e latentes possibilitando a triangulação dos dados. Os resultados demonstram que a comunicação interna não permeia estrategicamente todos os processos organizacionais. Os praticantes buscam por um espaço participativo e de interação no processo estratégico, mas a participação integral é restrita a alta gestão. Os praticantes utilizam em suas rotinas ferramentas informais que denotem proximidade, coletividade e humanização, apesar de possuírem um sistema de gestão de comunicação interna estruturado. Este estudo oferece novos insights ao nível micro das atividades organizacionais, complementando empiricamente a perspectiva teórica da estratégia como prática social, compreendendo como a comunicação influencia na ação dos praticantes.
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A new branch of corporate sustainability, Bottom-of-the-Pyramid (BOP), seeks out new market opportunities with low-income consumers in the developing world that simultaneously contribute to the sustainable development of these regions. While many companies consider the addition of BOP strategies to their sustainability portfolio, many also hesitate because of the uncertainties that surround this new sustainability practice. This article investigates strategies adopted by the corporate sustainability function in Novozymes, a multinational company with a solid track record in corporate sustainability, to implement a BOP project within key areas of the company's operational core. There are four internal organizational barriers that interlock one another and that have so far prevented the implementation of this project in key areas of operations. The article examines the challenges for sustainability managers who seek to overcome interlocking cognitive, processual, and structural barriers to the implementation of this new branch of sustainability practices.
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The apparent status of having a "celebrity CEO" heading a large organization creates a strong impression that the organization will be successful and forms an almost irresistible force compelling stakeholder commitment. However, a newly appointed celebrity CEO and the celebrity's co-creators run the risk of becoming over-confident, over-optimistic and over-committed to what may be a failing strategy. We explore a case in which this risk became reality. We use a dramaturgical perspective to analyse Air New Zealand's failed acquisition of Ansett Australia in 2001 and describe how the CEO, financial intermediaries, media and stakeholders co-created an unfolding drama marked by the CEO escalating the firm's commitment to the failing acquisition as a way of maintaining an illusion of control, which helped preserve the CEO's celebrity identity. We consider the implications for the various types of stakeholders in organizations and for the study of organizational leadership.
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It is often claimed that 50-90% of strategic initiatives fail. Although these claims have had a significant impact on management theory and practice, they are controversial. We aim to clarify why this is the case. Towards this end, an extensive review of the literature is presented, assessed, compared and discussed. We conclude that while it is widely acknowledged that the implementation of a new strategy can be a difficult task, the true rate of implementation failure remains to be determined. Most of the estimates presented in the literature are based on evidence that is outdated, fragmentary, fragile or just absent. Careful consideration is advised before using current estimates to justify changes in the theory and practice. A set of guiding principles is presented for assisting researchers to produce better estimates of the rates of failure.
Emphasizing causation as a functional relationship between variables that describe objects, Linear Causal Modeling with Structural Equations integrates a general philosophical theory of causation with structural equation modeling (SEM) that concerns the special case of linear causal relations. In addition to describing how the functional relation concept may be generalized to treat probabilistic causation, the book reviews historical treatments of causation and explores recent developments in experimental psychology on studies of the perception of causation. It looks at how to perceive causal relations directly by perceiving quantities in magnitudes and motions of causes that are conserved in the effects of causal exchanges. The author surveys the basic concepts of graph theory useful in the formulation of structural models. Focusing on SEM, he shows how to write a set of structural equations corresponding to the path diagram, describes two ways of computing variances and covariances of variables in a structural equation model, and introduces matrix equations for the general structural equation model. The text then discusses the problem of identifying a model, parameter estimation, issues involved in designing structural equation models, the application of confirmatory factor analysis, equivalent models, the use of instrumental variables to resolve issues of causal direction and mediated causation, longitudinal modeling, and nonrecursive models with loops. It also evaluates models on several dimensions and examines the polychoric and polyserial correlation coefficients and their derivation. Covering the fundamentals of algebra and the history of causality, this book provides a solid understanding of causation, linear causal modeling, and SEM. It takes readers through the process of identifying, estimating, analyzing, and evaluating a range of models.
Introduction The Rise of Structural Equation Modeling An Example of Structural Equation Modeling Mathematical Foundations for Structural Equation Modeling Introduction Scalar Algebra Vectors Matrix Algebra Determinants Treatment of Variables as Vectors Maxima and Minima of Functions Causation Historical Background Perception of Causation Causality Conditions for Causal Inference Nonlinear Causation Science as Knowledge of Objects Demands Testing of Causal Hypotheses Summary and Conclusion Graph Theory for Causal Modeling Directed Acyclic Graphs Structural Equation Models Basics of Structural Equation Models Path Diagrams From Path Diagrams to Structural Equations Formulas for Variances and Covariances in Structural Equation Models Matrix Equations Identification Incompletely Specified Models Identification Estimation of Parameters Discrepancy Functions Derivatives of Elements of Matrices Parameter Estimation Algorithms Designing SEM Studies Preliminary Considerations Multiple Indicators The Four-Step Procedure Testing Invariance across Groups of Subjects Modeling Mean Structures Confirmatory Factor Analysis Introduction Early Attempts at Confirmatory Factor Analysis An Example of Confirmatory Factor Analysis Faceted Classification Designs Multirater-Multioccasion Studies Multitrait-Multimethod Covariance Matrices Equivalent Models Introduction Definition of Equivalent Models Replacement Rule Equivalent Models That Do Not Fit Every Covariance Matrix A Conjecture about Avoiding Equivalent Models by Specifying Nonzero Parameters Instrumental Variables Introduction Instrumental Variables and Mediated Causation Conclusion Multilevel Models Introduction Multilevel Factor Analysis on Two Levels Multilevel Path Analysis Longitudinal Models Introduction Simplex Models Latent Curve Models Reality or Just Saving Appearances? Nonrecursive Models Introduction Flow Graph Analysis Mason's Direct Rule Covariances and Correlations with Nonrecursive-Related Variables Identification Estimation Applications Model Evaluation Introduction Errors of Fit Chi-Square Test of Fit Properties of Chi-Square and Noncentral Chi-Square Goodness-of-Fit Indices, CFI, and Others The Meaning of Degrees of Freedom "Badness-of-Fit" Indices, RMSEA, and ER Parsimony Information Theoretic Measures of Model Discrepancy AIC Does Not Correct for Parsimony Is the Noncentral Chi-Square Distribution Appropriate? BIC Cross-Validation Index Confusion of "Likelihoods" in the AIC Other Information Theoretic Indices, ICOMP LM, WALD, and LR Tests Modifying Models Post hoc Recent Developments Criticisms of Indices of Approximation Conclusion Polychoric Correlation and Polyserial Correlation Introduction Polychoric Correlation Polyserial Correlation Evaluation References Index