Strategic Archetypes Research Articles

Aligning performance metrics with business strategy

PurposeThis study examines whether different strategy archetypes deploy specific performance metrics to support their strategic goals and priorities. If so, does alignment of strategy and metrics positively impact organisational performance?Design/methodology/approachThe conceptual framework and hypotheses are couched in Contingency Theory. The role of business strategy as a moderating variable is tested using MANOVA, followed by post hoc pairwise comparisons. The results are based on cross-sectional survey data from 372 manufacturing and service organisations in Italy.FindingsThe overall contingency effect of business strategy in selecting and deploying performance metrics and their effect on organisational performance is supported. However, the group-wise post hoc analyses show support only for Prospectors but not for Defenders and Analysers.Research limitations/implicationsThis research lends further support in favour of the Contingency Theory from a new geographic context (Italy) that there are no universally best performance metrics that drive organisational performance. However, more research is needed to understand why the theory only holds for certain strategic archetypes and not across all archetypes.Practical implicationsManagers can direct resources and effort towards designing and deploying the “right” type of performance metrics suitable for their strategic orientation and thus optimise organisational performance.Originality/valueThis is a rare study that tests the moderating role of business strategy using all four strategic archetypes of the Miles and Snow typology. It deploys both financial and non-financial measures and uses a very large sample of both manufacturing and service organisations from a relatively unexplored region of the world. The study provides additional evidence in favour of the Contingency Theory whilst advocating for more research to refine our understanding of why the contingency perspective is not so important for firms that are not the first-in.

Strategic archetypes, credit ratings, and cost of debt

Despite the theoretical and empirical controversy about rating agencies' reputational issues, credit ratings have far-reaching implications for financing and investment decisions. However, the relationship between strategic behavior and credit ratings remains largely unexplored. Using a large sample of U.S. non-financial firms between 1981 and 2016, we examine how established archetypes of strategic behavior in business affect firms’ credit ratings. We document that firms with prospector type strategies experience significantly lower credit ratings than firms which are identified as defenders and analyzers. The negative effect on credit ratings is more pronounced for firms operating in weaker governance environments and during periods of high economic policy uncertainty. Further, we find that prospector type firms with weaker credit ratings have a higher cost of debt. Our results hold after accounting for endogeneity concerns and self-selection bias. Overall, our findings emphasize that more transparent and stringent governance can enhance ratings of prospector firms.

Strategic archetype of Herbal Medicine Product (HMP) in Regulated and Emerging Market

Herbal Medicine Products (HMPs) are ever-present and demand still keeps on the rise, despite of fact that modern medicines are well developed. So, regulative intervention and attempts by various regulatory bodies across the globe to ensure the safety, quality, and efficacy of HMPs have been a real-time challenge. While Allopathic medicines principally depict chemical substances, and those interactions had been well-known, validated also, proper regulatory standard then relevant measures are put into action. HMPs, instead by and large consisting numerous ingredients holding multifaceted combinations along with plant constituents then frequently likewise comprise of roughly anonymous complexes, therefore, building affecting regulatory framework toward measure affecting worth about those drugs is more tricky. So, through this manuscript efforts have been made to summarize definitions, basis of formulating policies and measures pertaining on registration and regulation of herbal medicinal products (HMPs) for both regulated and emerging markets i.e., United States, India, China, Japan, and Europe.

Strategic archetypes of planning processes: Model and evidence

Complex planning processes bear the hallmarks of evolution, in that actors seek to obtain the results that serve their needs best. That is, seek to increase their fitness. As in biological evolution, there are multiple pathways toward fitness. With the rise of adaptive planning approaches, the question how such pathways can be identified in strategic planning processes becomes pivotal. To answer this question, we adapt the fitness landscape model from biology and analyze several strategic planning processes. The analysis demonstrates that one can trace how different pathways to fitness emerge, and which pathways are more successful given the circumstances. We then synthesize these pathways into six strategic archetypes of actor behavior and of interactions between actors.

Miles and Snow’s strategic typology redux through the lens of ambidexterity

PurposeThe purpose of this paper is to link firms’ strategic archetypes as formulated by Miles and Snow (1978) to the more recent literature on organizational ambidexterity. Examining these obvious linkages, the paper also addresses how these firms address their entrepreneurial, engineering and administrative problem domains in relationship with the firm’s strategic archetype.Design/methodology/approachData were collected from 503 firms across the US. Measures previously validated were used to collect information related to the strategic archetype as well as the three problem domains. Multiple discriminant and regression analyses were used to test the hypotheses.FindingsMost of the hypotheses relating the entrepreneurial (exploration and exploitation), engineering (radical and incremental innovation) and administrative problem (adaptation and alignment) to the four strategic archetypes (defender, prospector, analyzer and reactor) were supported. Additionally, the authors found that the firms that had the closest alignment along the three problem domains outperformed the other firms.Originality/valueAlthough the Miles and Snow typology has received considerable research attention, the obvious links with more contemporary research on organizational ambidexterity has been neglected. Through this integration, with more recent key strategic management concepts, this paper shows the utility and current relevance of the Miles and Snow archetypes.

Strategic archetypes in Mexican metalworking SMEs: differences in innovation and absorptive capacity over performance

After several years of booming, today the Mexican metalworking industry faces a complex environment largely due to foreign policy changes. Nevertheless, most small-and-medium-sized entrepreneurs do not perceive what is to come because they are busy attending the demands of the present market, which has allowed them to obtain a stable performance in the short term. This research analyzes the explanatory value of innovation and potential absorption capacity, which was conducted on the performance of different strategic archetypes in small-and-medium-sized entrepreneurs of the Mexican metalworking industry, based on the typology proposed by Miles and Snow (1978). With data from surveys applied to 197 SMEs in three regions of Mexico, a non-experimental transactional quantitative-correlational type of research was developed. Half of the interviewees were found to be analysts, for whom innovation and potential absorptive capacity have an explanatory value of 32.3% on performance. The rest of the interviewees feature defender archetypes, in which innovation has an explanatory value of 56.8%. According to Chow’s Test, these differences are not significant in the final performance result. It is concluded that small-and-medium-sized business analysts and advocates develop capacities that allow them to make the necessary adjustments that the environment dictates along the way, generating different competitive advantages that help them achieve similar results in the short term.

Estrategia organizacional y la rentabilidad en empresas del sector automotriz de la Zona Central del Ecuador

El objetivo de esta investigación es aproximarnos al estudio de la estrategia organizacional y la rentabilidad en las empresas representativas del sector automotriz de la Zona Central del Ecuador durante los años 2013 al 2015. En base a la tipología genérica propuesta por Miles y Snow en torno a la estrategia y el estudio de la rentabilidad, medida a través del ROI y el EBITDA, se evaluaron cualitativa y cuantitativamente a siete empresas del sector, identificándose inicialmente características en torno a cinco factores: mercado, eficiencia, innovación y estructura, en base a los cuales se diferenciaron arquetipos estratégicos en las empresas que las identifican como: Prospectiva, Analizadora o Defensiva. No se hicieron evidentes casos de empresas Reactivas en la población estudiada. Los principales resultados de la investigación muestran a través del análisis descriptivo que la caracterización de las empresa Prospectiva y Analizadora identificada en la mayoría de empresas estudiadas está ligada a mayores niveles de rentabilidad, incluso cercanos a los reportados por la industria, que aquella que habría aplicado una estrategia de carácter Defensiva, con desempeño comparativamente menor en ROI y EBITDA.

Assessment of business strategy: implication for Indian banks

Purpose – The purpose of this paper is to explore the business strategy and its strategic orientation in the context of Indian banking sector. While past research has focussed on internal factors, organizational performance and organizational design, present research intends to fill the gap by assessing the strategic archetypes for Indian banking. Design/methodology/approach – A review of literature resulted in 14 items covering various aspects of strategy orientation. A structured questionnaire was used to obtain insights from bank managers. The study is based on responses received from 330 banking officials working in various functional areas of banks in India. Findings – Using factor analysis, the 14 items are reduced into four major factors: competition, cost, innovation and customer need. In terms of strategic preferences, the finding indicates that respondents have given higher rating for both market share (25 percent) and new products (25 percent), followed by cost (16 percent), competition (15 per...

A Contemporary Examination Of The Miles & Snow Strategic Typology Through The Lens Of Ambidexterity

Utilizing the lens of ambidexterity, the authors studied 503 diverse firms to determine how they address their entrepreneurial, engineering, and administrative problem domains and their association with firms’ strategic archetype as presented in Miles and Snow’ (1978) strategic typology. Findings suggest that consistency matters. Firms consistent in their approach to the various domains outperformed those that were less consistent. The results demonstrate the enduring value of the Miles and Snow’s (1978) seminal work. Additionally, the inclusion of ambidexterity as a dynamic capability furthers the explanatory power of the typology.

Strategic Archetypes of Emerging Market Multinationals: Outward FDI Analysis of Indian Firms

Emerging Market Multinationals (EMNCs) are often seen as firms with singular identity. While they may share certain characteristics, EMNCs are seldom orchestrated and managed in the same manner. Through a cluster analysis based on outward foreign direct investment (OFDI) data of EMNCs from India, we propose a taxonomy of EMNCs based on their mode of operation, industry in which they operate, region where they invest and the amount invested. Using a dataset spread over 2007-2013, constituting investment behavior of 4824 Indian firms, we propose three strategic archetypes of EMNCs: Global Service Providers, Integrated Manufacturers, and Established Internationalizers. We find that they differ in their strategy and purpose of internationalization. We discuss our findings and lay out future directions for research in the area.

More Innovation with Less? A Strategic Contingency View of Slack Resources, Information Search, and Radical Innovation

This study investigates the nonobvious interrelationship between slack resources and radical innovation. While organizational slack and innovation literature has implicitly recognized a link between these constructs, at least two important aspects of their relationship have been overlooked. First, little attention has been paid to the mechanisms by which slack resources become beneficial for radical innovation. Drawing on information search and organizational learning theories, we propose distal search activity—searching for information outside the current knowledge domain of the firm—as a mediating variable between slack resources and radical innovation. Second, little consideration has been given to the strategic orientation of the firm as the context in which slack resources are deployed to enhance radical innovation. Adopting Miles and Snow's typology of strategic archetypes, we propose a moderating role of strategy in the slack resources–distal search–radical innovation chain of relations. We tested our hypotheses on a sample of Chinese high‐technology firms, using multiple informant survey data and regression analysis. Our results indicate that slack resources are positively related to radical innovation, and that this relationship is partially mediated by distal search. Thus, there appear to be two routes (one direct, one indirect) to transform slack resources into radical innovation. Further, moderation analysis shows that the effect of slack resources on distal search is strongest among analyzers, while the effect of distal search on radical innovation is strongest among defenders. In sum, our results suggest that analyzers are relatively more dependent on the amount of slack resources compared to other strategy types, that is, resource constraints would have a more negative effect on analyzers. We discuss theoretical and managerial implications of our study and conclude by suggesting future research opportunities.

Relevance Found! The Result Perspective as a Basis for Practically Applicable Project Typologies

The purpose of this paper is to advance project theory on how distinctive significant characteristics in different project types can be identified and utilized for the effective management of projects and project portfolios. The since long dominating view that all projects can be managed using a standardized set of methods and techniques is insufficient, since the most apparent feature of projects is that each project is unique. Several attempts have been made to develop typologies for diagnosing projects. The process perspective, based on a rationalistic standpoint, has long been the prevailing perspective in both project practice and project research. This perspective has since the mid ninetieth been challenged by an organizational perspective. We argue that the “result perspective”, a trivialized perspective within the project research field, can be utilized to increase the understanding of the project phenomenon, and to identify distinctive characteristics in projects. Partly conceptual, and partly based on findings from case studies in three multi project environments carried out during a doctoral study 2004-2009, we describe a framework for a Structured Project Analysis (SPA) based on variations in project deliverables, goals and effects. Three analysis models are outlined: 1) Operational logics - based on variations in the character of the deliverables. 2) Strategic archetypes - based on variations in the project goal and effects. 3) Complexity - based on the nature of complexity in the project deliverables, goal and effects.

A Balancing Act? The Implications of Mixed Strategies for Performance Measurement System Design

ABSTRACT This paper examines how firms design performance measurement systems (PMSs) to support the pursuit of mixed strategies. In particular, we examine the implications of firms' joint strategic emphasis on both low cost and differentiation for their use of performance measurement and incentive compensation. Analysis of survey data of 387 firms shows that more than half of the sample to some extent or fully mixes strategic priorities, while strategic priorities resembling strategic archetypes (primarily low cost or differentiation) populate only 36 percent of the sample. Our analyses support that, as compared to archetypal strategies, pursuing mixed strategies elicits design of more comprehensive and complex PMSs that are aimed at balancing effort and decisions toward the multiple strategies pursued.

A multilevel model for measuring fit between a firm's competitive strategies and information systems capabilities

To compete in a highly dynamic marketplace, firms must frequently adapt and align their competitive strategies and information systems. The dominant literature on the strategic fit of a firm's information systems focuses primarily on high-level measures of the strategic fit of a firm's overall IS portfolio and the impact of fit on business performance. This paper addresses the need for a more fine-grained approach for assessing the specific areas of misfit between a firm's competitive strategies and IS capabilities. We describe the design and evaluation of a multilevel strategic fit (MSF) measurement model that enables researchers and practitioners to measure the strategic fit of a firm's information systems at both an overall and a detailed level. The steps in the model include identifying the relevant IS capabilities according to the type of system; measuring the current level of support for each capability using a capabilities instrument; identifying the ideal level of support for each capability using an adaptation of Conant et al.'s (1990) instrument to assess strategic archetype; and comparing the ideal and realized level of support for each capability. Evidence from a multiple case study analysis indicates that the fine-grained assessment of strategic fit can strengthen the validity, utility, and ease of corroboration of the strategic fit measurement outputs. The paper also demonstrates how an iterative design science research approach, with its emphasis on evaluating the utility of prototype artifacts, is well suited to developing field-tested and theoretically grounded measurement models and instruments that are accessible to practitioners. This focus on practical utility in turn provides researchers with results that can be more readily corroborated, thus improving the quality and usefulness of the research findings.

Performance management and organizational strategy: How to design systems that meet the needs of confrontation strategy firms

The link between organizational strategy and performance management system design has been examined in numerous studies. Invariably, strategy is conceptualized using archetypes developed in the 1970s and 1980s. Scholars have increasingly questioned the wisdom of relying on strategic archetypes that are plainly dated and conspicuously disconnected from the possibility of firms competing head-to-head, not out of choice but out of necessity. Cooper (1995) calls such a situation the undertaking of a confrontation strategy. Using an exploratory research design, this paper draws on nine qualitative case studies to examine how performance management systems are designed to meet and support the implementation of a confrontation strategy. Initially six firms, spanning a variety of what were expected to be mature, highly competitive industries likely to feature confrontation strategies, were recruited for participation. This initial study was then followed by a more concentrated examination of one particular industry: the banking industry. Findings from the total case study sample of nine firms lead to the presentation of an original table contrasting the unique performance management system designs associated with the three distinct strategies of cost leadership, differentiation, and confrontation. In particular, and in contrast to firms pursuing cost leadership or differentiation strategies, firms with confrontation strategies are likely to feature collaborative organizational cultures, lean organizational structures, and training and development programs that focus on developing empowered, multi-skilled teams of self-governing and coordinating employees. The exploratory intent of the paper, and thus its reliance on a small sample size of nine organizations, may limit the generalizability of the paper’s findings. In spite of this limitation, the findings offer opportunities for researchers to move beyond the exploratory approach presently adopted and empirically test the confrontation strategy and performance management system linkages proposed. Additionally, practitioners are likely to benefit from a clearer understanding of the type of performance management system design needed to support confrontation strategies.

A Multilevel Model for Measuring Fit Between A Firm's Competitive Strategies and Information Systems Capabilities

To compete in a highly dynamic marketplace, firms must frequently adapt and align their competitive strategies and information systems. The dominant literature on the strategic fit of a firm's information systems focuses primarily on high-level measures of the strategic fit of a firm's overall IS portfolio and the impact of fit on business performance. This paper addresses the need for a more fine-grained approach for assessing the specific areas of misfit between a firm's competitive strategies and IS capabilities. We describe the design and evaluation of a multilevel strategic fit (MSF) measurement model that enables researchers and practitioners to measure the strategic fit of a firm's information systems at both an overall and a detailed level. The steps in the model include identifying the relevant IS capabilities according to the type of system; measuring the current level of support for each capability using a capabilities instrument; identifying the ideal level of support for each capability using an adaptation of Conant et al.'s (1990) instrument to assess strategic archetype; and comparing the ideal and realized level of support for each capability. Evidence from a multiple case study analysis indicates that the fine-grained assessment of strategic fit can strengthen the validity, utility, and ease of corroboration of the strategic fit measurement outputs. The paper also demonstrates how an iterative design science research approach, with its emphasis on evaluating the utility of prototype artifacts, is well suited to developing field-tested and theoretically grounded measurement models and instruments that are accessible to practitioners. This focus on practical utility in turn provides researchers with results that can be more readily corroborated, thus improving the quality and usefulness of the research findings.

Hybrid Strategies: The American Experience

The United States has never followed only one grand strategy at a time. In this article, I develop the concept of “hybrid” grand strategies—strategies that vary by time and place, and combine the advantages (or disadvantages) of pure strategic archetypes such as containment, integration, regime change, bargaining, or non-intervention. I argue that hybrid strategies have been ubiquitous in American history, varying more by emphasis and degree than by absolute contrast. Moreover, U.S. hybrid strategies have often succeeded in accomplishing their major goals.

Dual focus in exploration and exploitation: the strategic path to sustainable competitive advantage

Organisations that can successfully develop both radical and incremental product innovations positively impact sustained competitive advantage. Past research has indicated that a dual focus in innovation strategy may be fulfilled by use of dual organisational structures and cultures. This research complements these efforts by analysing business process influences on dual focus. Using data collected from US high technology manufacturers, four strategic archetypes in innovation were developed and analysed using cluster analysis. Dual focus firms were shown to have multiple processes in place that impact both types of innovation strategies and that these firms implement these processes to a greater extent than those firms operating in the more extreme positions. Following the report of results, implications for organisations toiling for a sustainable competitive advantage through product innovation are discussed, as well as future research directions.

Dominant strategic archetype of the Russian industrial firm

Basierend auf den Ergebnissen einer breitangelegten Umfrage in russischen Industrieunternehmen wurde der Versuch unternommen, das vorherrschende Modell russischer Industriefirmen bezuglich stategischer Muster, vorherrschender Zielstellungen und daraus resultierender wettbewerbsfahiger Positionierung zu beschreiben. Es wurde herausgefunden, dass das vorherrschende Modell auf unrealistischen Vorstellungen uber organisationales Leben und falsch verstandenen Standards sozialer Verantwortung basiert, die in einer Mehrheit der Falle zu ineffektiven Zielstellungen und zur Unterdruckung des Entwicklungspotentials fur qualitatsorientierte Unternehmen fuhrt.

A resource-advantage perspective of product–market strategy performance & strategic capital in high technology firms

Contrary to common misconceptions, firms tend generally to remain constant in their strategic approach to markets and rarely deviate from their prevailing strategic archetype. Consequently, the effectiveness of a firm's product–market strategy is as important as its persistence in achieving overall strategic performance. Adopting a resource-advantage perspective, we examine the extent to which resource bundles differ among firms within a product–market strategy performance typology. Analyzing data generated from high-technology industrial manufacturers, we find that successful strategists are endowed with significantly greater levels of resources–that include ‘strategy championing’, ‘strategy commitment’, ‘implementation support’, ‘implementation effectiveness’, ‘learning’, and ‘memory’–in contrast with unsuccessful strategists, hopeful strategists, and fortunate strategists. Further, important inter-group differences are identified and discussed, along with the implications of this study for researchers and marketing managers.