Journal of Strategy and Management

Smith, Meabh; Loonam, John

2016 Journal of Strategy and Management

doi: 10.1108/JSMA-11-2015-0094

PurposeGlobally and particularly in Ireland, reduced expenditure on healthcare along with increasing pressure to increase patient throughput and improved performance against standards, is forcing healthcare providers to adopt tools from the business sector and apply them in the healthcare sector to bring about improved performance. The paper aims to discuss these issues.Design/methodology/approachThis study is interpretivist in nature, specifically focussing on exploring how the balanced scorecard can support improved service delivery within a hospital department. The research will conduct an exploratory case study of a single hospital site within the Irish republic. This research is based on qualitative interviews with corroboration from document review and direct observation. This study provides a snap-shot of the Cath Lab service at a moment in time.FindingsThe development of a strategy map and proposed balanced scorecard for an Irish hospital unit.Originality/valueThe development of a balanced scorecard for a healthcare organisation.

Martynov, Aleksey; Shafti, Nader

2016 Journal of Strategy and Management

doi: 10.1108/JSMA-02-2015-0016

PurposeThe paper reviews existing empirical research where long-term performance (LTP) of firms is the dependent variable. The purpose of this paper is to structure and classify the existing research, outline the shortcomings, and chart the avenues for future research in the area of LTP.Design/methodology/approachThe paper is a review of the existing empirical literature. It surveys the existing studies and proposes new directions of empirical research.FindingsThe paper argues that there is a disconnection between the principal theories in strategy and the existing empirical findings. In particular, while the resource-based view (RBV) and dynamic capabilities view aim to predict sustainable competitive advantage and sustainable firm performance, few empirical papers examine the LTP consequences of resources and dynamic capabilities.Research limitations/implicationsThe paper shows where future research efforts should be concentrated by outlining shortcomings in existing research.Practical implicationsThe paper compares ways to measure LTP that will be useful to corporate executives. The paper also outlines factors that have been shown to affect LTP. These findings can be used by executives planning their strategy.Originality/valueThe paper is a first review of LTP. It also contributes to the debate in strategy on the RBV and dynamic capabilities.

Carriger, Michael

2016 Journal of Strategy and Management

doi: 10.1108/JSMA-10-2015-0085

PurposeThere has been much written about the effects of downsizing on the financial health and the valuation of companies that engage in this practice. But this literature is fragmented, focusing on various aspects of companies, various reasons for downsizing, and various financial and market outcome measures. The purpose of this paper is to try and address some of this fragmentation by comparing those companies that downsized in 2008, whether financially healthy or not, with those companies that did not downsize.Design/methodology/approachThe impact of the downsizing event was assessed by using various financial measures as well as a measure of company valuation over the short term (2009-2011) and long term (2009-2014).FindingsFindings indicate that across all financial measures, except return on equity, downsizing makes no difference to the financial health of a company either in the short term (up to three years after the downsizing) or in the long term (up to six years after the downsizing). And with regards to return on equity, downsizing companies did more poorly immediately after the downsizing in efficiently using their equity.Originality/valueThe hope is that this work will better inform, not only scholars, but also senior leaders faced with a decision to downsize or not to downsize.

Jifri, Ali Omar; Drnevich, Paul; Tribble, Larry

2016 Journal of Strategy and Management

doi: 10.1108/JSMA-03-2015-0024

PurposeWhile previous strategy research has provided significant attention to resource slack and its important roles in firm performance, particularly through strategic agility and flexibility in responding to environmental conditions, the majority of such theory and empirical work was developed for large business contexts. Therefore, the understanding of the relative contributions of absorbed and potential slack, particularly for resource-constrained small businesses, remains largely under theorized and unexamined. As many small businesses often face internal resource limitations, the ability to access external resources, in addition to internal resources, is likely significant, for firm performance, especially when small firms face high economic uncertainty. The paper aims to discuss these issues.Design/methodology/approachIn this paper the authors utilize a data set from National Federation of Independent Business on small business economic trends. The sample consists of approximately 13,000 US-based small and medium businesses.FindingsThe findings highlight the importance of resource slack in firm performance offering general support for the applicability of classic management theories to the small business context. Environmental hostility and competitive intensity appear to positively moderate the observed relationship between both absorbed and potential resource slack and performance, but in different ways. Environmental hostility positively moderates the relationship between potential slack and firm performance, while competitive intensity positively moderates the relationship between absorbed slack and firm performance.Research limitations/implicationsBecause most classic theories in strategic management were only theorized for, and examined through, large organizations, entrepreneurship research should consider these potential limitations and carefully consider factors differing between large and small firms.Practical implicationsBusiness owners and managers should be aware that not all types of slack have equal performance implications. Absorbed slack is extremely valuable in highly competitive situation. Therefore, business owners should develop plans to recover absorbed slack during highly competitive situations as a defensive strategy. One the other hand, potential slack forces more accountability, which lowers the possibility of small firms using it to engage in price wars, but it is extremely valuable during worsening economic conditions.Originality/valueIn this paper the authors separate absorbed slack from potential slack conceptually and then test their individual effects on firm performance. Through this study, the authors establish boundary conditions for the important role of resource slack on performance through the moderating roles of environmental hostility and competitive intensity.

de Waal, André; van der Heijden, Béatrice

2016 Journal of Strategy and Management

doi: 10.1108/JSMA-06-2015-0045

PurposeOne of the most important characteristics of high-performance organizations is that these organizations always aim at servicing their customers as best as possible. In practice, this means that the employees of these organizations have to behave toward customers in such a way that these customers are not only fully satisfied but also become loyal to the organization. The purpose of this paper is to look at the concrete behaviors that are needed to create this customer loyalty.Design/methodology/approachFrom a literature review the items that potentially are of influence on creating customer loyalty and customer intimacy were identified, based on a previous validated questionnaire while adding additional items. These items were subsequently validated in practice with a questionnaire distributed among people who are in daily life regular customers of organizations.FindingsThe research results show that there are eight behavioral factors of importance to create customer loyalty and customer intimacy: first, service quality delivered by employees; second, capability of employees to deliver high quality; third, empathy of employees toward customers’ wishes and needs; fourth, understanding of employees of customers’ needs; fifth, responsiveness of employees toward the needs of customers; sixth, courtesy of employees toward customers; seventh, service manner of employees; and finally, trust customers place in employees.Research limitations/implicationsThe implication of this research is that, now that the behavioral factors are known, an organization can make sure its employees focus on displaying these behaviors toward customers consistently over time, in order to make sure customers will experience the organization as a high-performance organization and will feel loyalty toward the organization.Originality/valueThe research described in this paper adds to the literature in the sense that it encompasses previous research into once item list and specifically looks at behaviors that create excellent service and thereby customer loyalty and customer intimacy, both concepts that go beyond the much researched topic of customer satisfaction.

Mohamud, Mubarak; Sarpong, David

2016 Journal of Strategy and Management

doi: 10.1108/JSMA-11-2015-0088

PurposeThe purpose of this paper is to stimulate, shape and extend current discourse on the relevance of dynamic capabilities on firm competitiveness.Design/methodology/approachThe authors delineate current debates on dynamic capabilities and synthesize them to develop some propositions and a heuristic framework to guide future research on dynamic capabilities as a strategic management construct.FindingsThe theoretical and methodological complexities involved in mapping the routines and processes’ underpinning dynamic capabilities has led to conceptual discrepancies, which in turn impede the understanding of the relevance and contribution of dynamic capabilities to competitiveness. Measuring dynamic capabilities remains the biggest barrier to progress in developing directions for theory and research in this area.Practical implicationsStimulating and shaping the current discourse on the relevance of dynamic capabilities on competitiveness, the proposed integrated framework as a heuristic device can be to gauge the a firm’s dynamic capabilities vis-à-vis their competitors.Originality/valueThe authors propose a framework built around the inter-relationships of capabilities and hierarchies of capabilities to extend the understanding of how dynamic capabilities can be developed relative to a firm’s ability and embedded context.