Session 89

Strategic Alignment and Strategy Implementation

Track H

Date: Sunday, October 7, 2012


Time: 15:15 – 16:30


Room: Club E

Session Chair:

  • Taco Reus, Erasmus University-Rotterdam

Title: Improving the Odds: The Role of Participatory Management and Strategic Planning for Managing Downside Risk


  • Johanna Sax, Copenhagen Business School
  • Stefan Linder, ESSEC Business School

Abstract: Dealing with shifts in technologies, changing market trends, and newly emerging niches and business opportunities effectively represents a fundamental strategic challenge for today’s firms. Middle managers may be a valuable source of new ideas for adaptation, which firms can exploit by relying on a participatory management style. Yet, participation also has drawbacks. Strategic planning has been suggested as an integration device promising to overcome some of these drawbacks. Yet, empirical evidence investigating this matter and in particular testing the impact on firms’ downside risk is largely missing. We aim at narrowing this gap by providing first empirical evidence from a sample of 181 firms. We find support for the idea that a participatory management’s benefits for minimizing downside risk materialize themselves via formal strategic planning.

Title: Informal Control Modes and Initiative Performance: The Moderating Role of Supervisors\' Political Behavior


  • Markus Kreutzer, EBS University of Business and Law

Abstract: In this paper, we focus on informal control modes (composed of certain levels of informal input, behavior, and output control) utilized by top managers to steer growth initiative teams. We propose that the informal control mode utilized interacts with the existing level of supervisor’s political behavior to influence initiative performance. Survey data on strategic growth initiatives collected from 201 corporations serve to test our hypotheses. Our results of moderated regression analysis highlight the importance of adapting the control mode to the specific supervisors’ political behavior.

Title: On the Way to Strategic Alignment: The Mediating Role of Procedural Justice of the Strategy Process


  • Nufer Yasin Ates, Tilburg University
  • Daan van Knippenberg, Erasmus University-Rotterdam

Abstract: This study investigates the effect of strategic involvement of managers on their commitment to organizational strategies and their strategic alignment with the CEO, through the mediating role of managers’ procedural justice perceptions about the strategic decision-making process. Data from 141 managers at different hierarchical levels show the moderating role of managers’ hierarchical level in this process. Although strategic involvement leads to enhanced procedural justice perceptions of the strategy formation at all hierarchical levels, its effect on strategic commitment and strategic alignment is higher for the managers at the operational levels compared to middle and upper echelon managers of the organization. This study expands the procedural justice research in strategy process to middle and lower levels of the organization while providing empirical evidence for the importance of strategic involvement in successful strategy implementation.

Title: Role Modeling in Strategy Implementation: Do Middle Managers Imitate Top Managers’ Influence Behavior?


  • Aischa Astou Saw, WHU - Otto Beisheim School of Management
  • Lutz Kaufmann, WHU-Otto Beisheim School of Management
  • Felix Reimann, Korea University Business School
  • Matthias Ehrgott, WHU-Otto Beisheim School of Management

Abstract: Effective communication is critical for the successful implementation of strategies. Employees need to be motivated to carry out operational activities that contribute to strategy execution. The paper focuses on how strategic directives are communicated throughout multiple organizational levels. We analyze how top managers behave, when influencing middle managers to support a change. Further, we show how this behavior in turn determines middle managers’ own influence behavior toward employees. Following Social Learning Theory, we explore whether middle managers imitate the behavior they observe top managers to use. The role of exchange relationships within this vertical communication chain is also examined. To test the hypotheses, 49 top managers, 129 middle managers, and 567 employees of an international consumer goods company were surveyed.

All Sessions in Track H...

Sun: 08:00 – 09:15
Session 267: Strategic Processes in Transition
Sun: 09:30 – 10:45
Session 268: Capabilities that Help or Hurt Acquisition Processes
Sun: 11:15 – 12:30
Session 269: Chief Strategy Officer’s Role in Strategy Processes
Sun: 15:15 – 16:30
Session 89: Strategic Alignment and Strategy Implementation
Mon: 08:00 – 09:15
Session 99: Ambidexterity and Innovativeness
Mon: 09:30 – 10:45
Session 91: Consensus and Commitment
Mon: 13:30 – 14:45
Session 92: Attention, Goals and Renewal
Mon: 16:30 – 17:45
Session 90: Participation, Cooperation and Commitment
Tue: 08:00 – 09:15
Session 94: Going Beyond the Conventional Wisdom
Tue: 11:00 – 12:15
Session 95: Emotions and Behavior
Tue: 14:15 – 15:30
Session 96: Comprehensiveness and Time
Tue: 15:45 – 17:00
Session 98: Management of Emerging Strategic Issues
Tue: 17:30 – 18:45
Session 93: Cognition and Intuition
Session 97: Cognition and Capabilities

Strategic Management Society