Characteristics of realised strategy groups and organisational performance implications

Abstract

The main purpose of this study was to unravel the paradoxical prescriptions in the existing business strategy and performance literature. First, in the literature review, the study disclosed this paradox in the business strategy and performance. Second, the study illustrated the core bases for understanding organisational business strategy, and the related realised strategy groups at organisations. Based on these, then the study undertook an empirical field study to examine how core characteristics that influenced the realised strategy groups at organisations and their performance implications. This then served as a platform to derive a set of propositions that can be the basis for further empirical research. Within the realised business strategy setting, I set out to explore the characteristics of realised strategy types and their performance implications at entrepreneur-led information technology (IT) organisations in New Zealand. Nine entrepreneur-led IT organisations were selected for this purpose. The research methodology was based on qualitative research techniques, specifically the case study method. The primary source of data collection was in-depth interviews of participant organisations. The findings of this study exposed chiefly two core characteristics of realised strategy groups at successful organisations, namely moderate levels of strategic particularity and holistic strategic balance. The study findings also indicated that the organisations exhibiting moderate levels of strategic particularity and holistic strategic balance and realised moderately simple strategies achieved profitability, incremental business growth, positive cash-flow and were able to sustain or increase their employee base. Similarly, the findings indicated that the organisations exhibiting lack of strategic particularity and holistic strategic balance, realising excessively complex strategies faced negative cash-flow problems, decrease in employee base, downsizing, going into receivership or being sold. The study also suggested a direct influence from the business philosophy adopted by each organisation on its realised business strategy group.