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Strategic Planning and Management in Transit Agencies (2005)

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4OVERVIEW The literature review revealed that strategic planning is a popular and widespread practice in both the private and pub- lic sectors. It is a leadership and management tool that has been successfully used for decades to help organizations bet- ter prepare for the future and improve long-term performance. There is increased recognition that strategic planning is not enough by itself and that too many good strategic plans have been left to gather dust. Effective leadership is required to both develop and implement strategic plans. This has led to the concept of “strategic management,” which includes the implementation and ongoing management of strategic plans, not just their development. Another trend has been to make the strategic planning process briefer and more flexible. Part of the problem in the past has been that formal and elaborate planning processes have often led to the development of comprehensive and thor- ough plans that are out of date by the time they are produced. Today’s more turbulent and uncertain times require that less emphasis be given to the form of the plan and more to the substance and timeliness of the results. Henry Mintzberg has suggested that strategic planning is quite different than “strategic thinking,” the creative synthe- sis of visionary new business strategies. He goes further by suggesting that strategic planning, essentially analytical in nature, may even be antithetical to strategic thinking. He believes that strategic planning is more appropriately thought of as “strategic programming.” As such, it may be quite suit- able for relatively stable public transportation systems. Although it began in the military, the early nonmilitary use of strategic planning was primarily in the private sector. How- ever, its use in the public and nonprofit sectors has increased substantially and there are now several good sources of infor- mation on performing strategic planning in these sectors. Sev- eral reports and articles that pertain specifically to public- sector transportation are also reviewed. Effective strategic planning and management requires not only deciding what an organization should do, but also its having the knowledge and skills required to do it. With this in mind, the tools of organization development are discussed as a factor that could increase an organization’s capability to develop and implement strategic plans. This includes devel- oping and retaining a workforce with the requisite knowledge and skills. Finally, a recent TCRP study about “emerging new para- digms” in transit has suggested that fundamental changes will be required if transit is to succeed in a world of increasing social, economic, political, and technological change. If so, it could well be that strategic planning and management will be a crucial tool toward this end. INTRODUCTION As would be expected, there is a significant amount of liter- ature on the subject of strategic planning in general, particu- larly in the private sector. There is also a fair amount written on strategic planning in the public and nonprofit sectors. How- ever, much less has been written specifically about strategic planning in public transportation. This literature review will be selective rather than exhaus- tive. It will cover strategic planning in the private sector; how- ever, it will primarily focus on strategic planning in the public sector and in public transportation. HISTORY Strategic planning has a long history in organizations. Its ori- gins are often thought to have been in the military, where there was a need to develop comprehensive, long-term strate- gies to win a war as opposed to the shorter-term, more limited tactical planning needed to win battles or skirmishes. An early form of strategic planning, the SWOT analysis (strengths, weaknesses, opportunities, and threats), came out of the Har- vard Business School in the 1950s as part of their efforts in regard to business policy development and the analysis of business strategies in relation to an organization’s internal and external environments. The practice of strategic planning achieved considerable popularity in private-sector organizations in the 1960s and 1970s. In the 1980s, it became more and more prevalent in the public and nonprofit sectors. Unlike other management fads that have quickly disappeared, strategic planning is a management technique or practice that has demonstrated staying power and broad usage across a variety of organiza- tions in both the private and public sectors. STRATEGIC PLANNING IN GENERAL Early on, strategic planning was a relatively formal, elabo- rate, and often lengthy process. In addition, because times CHAPTER TWO LITERATURE REVIEW

5were more stable, a strategic plan was intended to last for several years. More recently, largely in response to these more rapidly changing and turbulent times, there has been a clear trend in the private sector to • Shorten the strategic planning cycle so that the plan is not out of date by the time it is finished. (However, it should also be noted that there has been a countervail- ing trend to open up the process and involve as many participants as feasible, rather than having it be a “top- down” plan developed largely by top management and imposed on the organization. The effect of this has been to lengthen the process.) • Make the planning process less formal and more flexible. • Make the process relatively continuous rather than some- thing undertaken only every 2 to 5 years. • Link it to other important business processes such as budgeting and performance measurement. An example of this is found in Strategic Readiness: The Making of the Learning Organization (1) in which the authors suggest a shift from strategic planning to strategic learning through a regular process of • Continuous planning—wherein the organization focuses on questioning and quickly adjusting existing plans; • Improvised implementation—that is, both experimental and evolving, and that provides good information for learning; and • Deep reflection about original assumptions—what has changed and what has been learned. The authors maintain that “most organizational change results not from formal plans and fixed programs for change but from a process of learning—and not just from the learning of indi- viduals but, more importantly, from the collective learning of entire organizations” (1, p. xi). The 1994 publication of The Rise and Fall of Strategic Planning by Mintzberg (2) presented a very comprehensive, complex, and contrarian view of the practice of strategic plan- ning. His central argument is that strategic planning by its very nature is the antithesis of “strategic thinking.” He views strategic thinking as a creative act of synthesis, and strategic planning as a process that is essentially one of analysis. (An analogy might be right brain versus left brain thinking, in which the right brain is considered to be more creative and holistic and the left brain is considered to be more linear and logical.) Mintzberg believes that “strategic planning often spoils strategic thinking, causing managers to confuse real vision with the manipulation of numbers” (3, p. 107). Mintzberg goes on to argue that “Strategic planning, as it has been practiced, has really been strategic programming, the articulation and elaboration of strategies, or visions, that already exist” (3, p. 107). He asserts that strategic planning does not fail because of such commonly mentioned pitfalls as a lack of commitment from top management or resistance to change, but instead because of its fundamental nature of being too analytical, too formalized, and too detached from the functions and interests of the business’s line managers. In spite of his belief that strategic planning is not effective at creating business strategies (strategic thinking), he believes that it can play important roles including: • Strategic planning as strategic programming—Instead of trying to use strategic planning to generate strategies or visions, use it to program them. This can be done through a process of “codification” (expressing the strate- gies in ways that are clear and operational), by “elab- oration” (breaking strategies down into substrategies and action plans), and “conversion” (identifying the impacts of the strategies on operations; e.g., on budgets and performance controls). • Strategic plans as tools to communicate and control— Plans can be an important way of communicating the organization’s intentions both internally (helping to ensure that everyone in the organization is pulling in the same direction) and externally. • Strategic planners as analysts—Planners can use their analytical skills and orientation by performing special studies and by offering new perspectives. • Strategic planners as catalysts—In this role, planners do not try to enter the “black box” of strategy making, but instead encourage and assist line managers to think in creative ways about the future (3, pp. 112–114). In Mintzberg’s words, “Planners shouldn’t create strategies, but they can supply data, help managers think strategically, and program the vision” (3, p. 107). Although insightful, Mintzberg’s distinction between strategic thinking and strategic planning may be more rele- vant to the private sector, where the environment tends to be more volatile and where businesses must constantly be on the lookout for new business strategies and opportunities. Gen- erally, in the public sector, and in public transportation more specifically, the situation is usually more constrained. For example, the purpose and geographic jurisdiction of public transportation agencies is usually prescribed by state legisla- tion. For the most part, public transportation agencies are not going to be pursuing business opportunities outside of the area of public transportation. In addition, their financial struc- ture is often defined or controlled in large part by their enabling legislation or funding bodies. It might therefore be argued that strategic planning, when thought of as strategic programming as described by Mintzberg, may be the primary role it should play in public transportation. Mintzberg implies this when he states that “Only when an organization is sure of the relative stability of

its environment and is in need of the tight coordination of a myriad of intricate operations (as is typically the case of air- lines with their needs for complicated scheduling), does such strategic programming make sense” (3, p. 112). The more creative strategic thinking described by Mintzberg might be used only infrequently, when there is a need for more trans- formative organizational or institutional change. Another valuable perspective on strategic planning, that appeared in the mid-1990s, was the concept of the “balanced scorecard,” as developed by Kaplan and Norton in response to their belief that strategic planning and management as practiced in the private sector gave too much weight to financial matters (4). To remedy this, they developed the balanced scorecard idea, an approach that provides a frame- work for helping an organization achieve its long-term strate- gic goals by viewing the organization from four key per- spectives: (1) the customer, (2) internal business processes, (3) learning and growth, and (4) financial performance. The balanced scorecard system involves the development, utilization, and analysis of performance metrics that are devel- oped for each of these perspectives. STRATEGIC PLANNING IN THE PUBLIC SECTOR One of the “bibles” of strategic planning in the public (and nonprofit) sector has been John Bryson’s Strategic Planning for Public and Nonprofit Organizations: A Guide to Strength- ening and Sustaining Organizational Achievement (5). This book was first published in 1988, and then substantially revised in 1995. Bryson defines strategic planning as “a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it” (5, pp. 4–5). He offers a generic strategic planning model that has been successfully used by many public and nonprofit agencies. This model consists of 10 steps that he refers to as the Strategy Change Cycle (5, p. 23): 1. Initiate and agree on a strategic planning process (including who should be involved, and their roles and responsibilities). 2. Identify organizational mandates (e.g., enabling legislation). 3. Clarify organizational mission and values (this step should include an analysis of key “stakeholders”). 4. Assess the organization’s external and internal envi- ronments to identify strengths, weaknesses, opportu- nities, and threats (SWOT analysis). 5. Identify the strategic issues facing the organization. 6. Formulate strategies to manage these issues. 7. Review and adopt the strategic plan or plans. 8. Establish an effective organizational vision. 9. Develop an effective implementation process. 10. Reassess strategies and the strategic planning process. 6 Note that Steps 1–8 focus primarily on the planning process, whereas Steps 9 and 10 shift the emphasis from strategic planning to strategic management. There are some lessons to be learned in the revisions the author made to the book in 1995. For example, Steps 7, 9, and 10 were added, reflecting the need to not just produce a plan but to effectively implement it, and also to reassess the planning process as a prelude to another round of planning. The emphasis is on strategic management, not just strategic planning. In addition, the author places more emphasis on the recognition that strategic planning is different than strategic thought and action (a point strongly made by Mintzberg and noted previously). In summary, the 1995 edition makes a more explicit linkage between leadership, strategic planning, and management. Bryson is clearly a strong believer in the benefits of strate- gic planning, including the promotion of strategic thought and action, improved decision making, and enhanced orga- nizational responsiveness and performance (5, p. 7). However, he also recognizes that strategic planning has limitations and should not be considered a panacea for all organizational problems or situations. For example, strategic planning is most likely not an appropriate response to extreme adverse circumstances; if the organization does not have the necessary people, skills, or management commitment to pro- duce a good plan; or if the likelihood of plan implementation is low. Bryson believes that strategic planning is here to stay because it effectively deals with substantive issues and con- cerns as well as the reality of political decision making. In 1993, the U.S. Congress passed the Government Per- formance and Results Act (GPRA). This act requires that federal agencies take a number of steps to operate in a more businesslike manner and that they become more accountable to taxpayers. These steps require agencies to • Define their missions and desired outcomes, use strate- gic planning, involve their stakeholders, assess their environments, and align their activities, core processes, and resources in support of mission-related outcomes; • Measure their performance to ensure that goals are being met; and • Use the performance data to improve organizational processes, identify performance gaps, and set improve- ment goals. Under the GPRA, agencies were instructed to develop mul- tiyear strategic plans, annual performance plans, and annual performance reports. As a result, in 1996, the FTA published its first strategic plan, covering the period from 1997 to 2001. An executive guide for implementing the GPRA, pub- lished by the Government Accounting Office, pointed out that

7the success of the GPRA “depends on strong leadership prac- tices that devolve decision-making authority with account- ability, create incentives, build expertise, and integrate man- agement reforms” (6). STRATEGIC PLANNING IN PUBLIC-SECTOR TRANSPORTATION In the mid-1980s, the University Research and Training Program of the Urban Mass Transportation Administration (UMTA) (currently the FTA) funded a project that examined strategic planning in small- and medium-size transit agen- cies (7). The study report included a discussion of strategic planning and its benefits, a survey of 104 transit agencies, and a case study of a small transit system in Missouri (South- east Missouri Transportation Services, Inc.). The author observed that the crux of strategic planning is to create a process that answers three basic questions (7, p. 5): 1. Where are we? 2. Where do we want to go? 3. How can we get there? In the survey of transit properties, the following percent- ages of respondents answered that they conduct a formal strategic planning process: • Small systems (fewer than 50 vehicles) 42% • Medium systems (50–99 vehicles) 68% • Big systems (100–500 vehicles) 62% • Large systems (more than 500 vehicles) 93% The average for the four sizes was 59%. However, when responses were analyzed more closely, it was noted that more than half (57%) were actually referring to long-range service and capital plans as required by the fed- eral UMTA, short-range service plans, or to the annual bud- geting process. In short, there appeared to be a great deal of confusion as to what actually constitutes strategic planning. The study identified the following managerial tools used by transit agencies that might become part of a strategic plan- ning process: • Strategic-type special studies (e.g., performance audits), • Performance indicators, • Management by objectives, and • Strategy retreats. It found that there were a number of obstacles to con- ducting strategic planning in agencies, and that these obsta- cles differed according to the size of the agency. For exam- ple, inadequate staff resources was regarded as a significant obstacle by small agencies, but much less so by large ones. Conversely, a lack of good information was regarded as a serious problem by large agencies, but not so serious by small agencies. Large agencies cited the “fish-bowl” envi- ronment of public agencies as a problem and also changing state policies. Other obstacles cited by respondents included: • Operating pressures, • A short-term orientation inside and outside the agency (“fire-fighting”), • The annual budget process, and • An inability to enter new markets or alter the agency’s external environment. The study also found that small agencies in particular have difficulty in regard to strategic planning. In general, these dif- ficulties had to do with inadequate resources, including staff, expertise, data, and the money needed to hire outside exper- tise. Three key conclusions emerged from the study: 1. The need to reinterpret the concept of strategic planning. 2. The importance of organizational readiness. 3. The need to mold strategic planning to the specific context of the organization. In regard to the need to reinterpret the concept of strate- gic planning, the study noted that conducting a comprehen- sive and formal strategic planning process (the “classical” strategic planning model) may be beyond the capability of most transit agencies. Moreover, it may be more than is nec- essary. Five strategies are suggested in regard to this issue: 1. The formality of the process needs to be de-emphasized. 2. The level of data and analysis should be kept in rea- sonable relationship to the capabilities of the agency. 3. The cost of the process should be kept in some reason- able relationship with the likely benefits. 4. There needs to be a better understanding that long- range planning is not the same as strategic planning. Long-range planning may be necessary and useful; how- ever, it does not fulfill the same purposes. 5. Strategic planning might best be performed by seg- menting it. Rather than implementing a single, rigid process, it might be more effective if it is kept more flex- ible and if it uses various tools for specific purposes (e.g., special strategic studies). The second conclusion was the importance of organiza- tional readiness; some organizations may just not be ready to undertake strategic planning. Key factors in whether an orga- nization is ready include organizational sophistication and stamina, the flexibility and commitment of management, and the skills and expertise of the participants. Finally, in regard to adapting strategic planning to the orga- nizational context, management is encouraged to be realistic about the capabilities of the agency, set priorities and clearly define objectives for the process, design a process that reflects

these considerations, and build on what already exists in the agency. In 1985, an article was published about a case study of the development of a strategic management process in the Penn- sylvania Department of Transportation (8). This study made clear the importance of not just developing a strategic plan but of also creating a management process to implement and man- age the plan. There were several factors that distinguished this effort from typical strategic planning processes at the time. For example, several key structural changes were made. A strategic management committee made up of the agency’s six top managers was formed to direct and manage the change process. Seven substantive subcommittees were also formed to help manage the effort. Organization-wide planning was centralized and program and project planning were decentral- ized. A concept of “business groups” was used to create a new way of thinking about the primary products and services pro- vided by the agency (as opposed to the more traditional way of thinking about the functions performed). Four-year plans were developed for each of the agency’s operating districts. Finally, the strategic planning process was tightly linked to the budget process to ensure that the agency’s resources were being aligned with the plans. All of these actions served to institutionalize the strategic planning process throughout the agency. In 1988, the same year that Bryson published his book on strategic planning in the public sector, the UMTA published A Guide to Strategic Planning for Transit Properties (9). Considered by some in the transit industry to be a classic text, this report provided an early guide or framework for strate- gic planning in transit. The authors define strategic planning as “the analysis of environmental change, the formulation of organizational objectives, and the establishment of priorities for resource allocation” (9, p. 1). The report goes on to describe why it is important to do strategic planning, and presents several case studies as examples of how to do it effectively. (The case studies were Alameda–Contra Costa Transit, NJ Transit, Port Authority of Allegheny County Transit, Seattle Metro, and the Utah Transit Authority.) In addition, the report discusses the following key differences between planning in the public and private sectors (9, pp. 3–4): • The private sector is primarily driven by the financial bottom line, whereas public agencies generally have multiple and often ambiguous goals and a variety of key stakeholders. • Public agencies are more often subject to public scrutiny and political pressures. • Mandates in the public sector are often legislated and are not up to management prerogative. Key conclusions of the study were: 8 • Upper management must be seriously committed to and participate in the strategic planning process. • The development of a mission, goals, and objectives should be based on a careful analysis of the environ- ment (both internal and external) and should emphasize a marketing perspective. Objectives should be stated in ways that are measurable. • There should be linkages between strategic planning, program planning, and budgeting, and between achieve- ment of strategic planning objectives and personnel appraisals and compensation. • Indicators should be developed that measure the effi- ciency and effectiveness of transit services. • Good communication is a crucial ingredient of an effec- tive strategic planning and implementation process. • “Strategy champions” with appropriate responsibilities and incentives are needed for successful implementation. • Environmental change should be regularly monitored. • The process should be flexible, iterative, and continuous. • Based on the case studies, there are clearly different ways that strategic planning can be conducted in terms of levels of detail and formality, how the process is organized, who participates, and the degree of analysis and documentation. The report ends with a recommended strategic planning framework that includes the following seven steps: 1. Organize management team and planning staff. 2. Undertake an environmental or situation audit. 3. Establish mission, goals, and objectives. 4. Develop broad strategies. 5. Establish programs and budgets. 6. Monitor program results—measure. 7. Monitor the environment. In 1990, the NCHRP published Strategic Planning and Management Guidelines for Transportation Agencies (10). This study looked at the current environment for strategic planning and management in a variety of publicly funded transportation agencies, provided a definition of strategic man- agement and its components, and recommended guidelines for successfully institutionalizing strategic management. The report distinguished strategic management from other traditional management practices by noting that the tradi- tional practices ask “How do we keep doing what we are doing, only do it better?’ Strategic management focuses instead on an overall vision of where the organization should be heading, i.e., what it plans to accomplish and how it can get it accomplished. It provides for the involvement of the entire organization in managing its people, processes, and products toward successful accomplishment of its goals and objec- tives” (10, p. 1). The report went on to delineate the following minimum components of a strategic management process (10, p. 2):

9• Mission statement (including goals and objectives), • Environmental scan, • Strategy development, • Action plan development, • Resource allocation, and • Performance measurement. An environmental scan generally involves an analysis or assessment of both the external and internal issues that are likely to affect an organization. It is sometimes referred to as a “situation audit.” It concluded that in the various transportation agencies stud- ied, a “strategic management process and its benefits are pres- ent and understood in less than a dozen state departments of transportation” and that “many of the remainder—plus many transit, airport, port authorities, and other publicly funded transportation agencies—seem to have insufficient interest in, or understanding of, strategic management” (10, p. 1). The report included a set of guidelines for instituting strate- gic management comprised of four primary stages: Stage I. Identifying the Need for Strategic Management • Determine the current status of strategic management in the agency. Stage II. Establishment or Enhancement of Key Strategic Management Elements • Define the agency’s business. • Develop plans for implementing strategic management initiatives. Stage III. Integration of the Key Elements into a Functioning System • Ensure that the agency mission statement and goal structure are in place. • Obtain chief administrative officer and senior management commitment to the strategic management process. • Establish a clearly understood division of responsibility for strategic management implementation, including the selec- tion of implementation managers or facilitators. • Develop an accurate information base and maintain its timeliness. Stage IV. Ongoing Use and Refinement of the Strategic Management System • Monitor the strategic management system. • Develop a reward and recognition program. In a 2003 article, “How to Develop a Strategic Plan That Won’t Gather Dust” (11), Richard Simonetta (CEO of Val- ley Metro Rail, Inc., in Phoenix, Arizona) recognized that there is often a significant gap or breakdown between com- pleting a strategic plan and implementing its recommenda- tions. Too often the focus is on the production of a plan doc- ument and not enough emphasis is placed on its execution. He outlined several principles to ensure that the strategic planning effort is successful (11, p. 80): • The process needs to be ongoing, with broad input for development and specific responsibility for effective implementation. • The plan needs to have milestones and performance metrics to measure progress and celebrate achievements. • The plan needs to involve stakeholders in the develop- ment, deployment, and refinement stages. • Finally, a strategic plan must be a living document that evolves over time as the public transit system becomes more successful at achieving its short- and long-range goals. A similar case, that is, that strategic plans often fail to achieve full-scale implementation and significant service improvements, is made in “Segmented Strategic Planning: An Incremental Approach to Transit Planning and Implemen- tation” (12). The authors propose a segmented approach— rather than attempting a comprehensive organization-wide strategic planning effort, they recommend a “series of orches- trated, low-level strategic plans” (12, p. 1). The report describes such an approach in Knoxville, Tennessee, where only the downtown and university campus trolley service was the focus of a recent strategic planning effort. This segmentation made it much more manageable and helped to avoid many of the obstacles that often arise from a larger-scale planning effort. In December 2001, recognizing the potential of strategic planning to improve the effectiveness of transit systems, APTA produced a Strategic Planning Resource Kit (avail- able on CD) (13). Basically, the kit contains copies of the strategic plans of 28 transit systems. STRATEGIC PLANNING AND PERFORMANCE MEASUREMENT Almost all of the literature on strategic planning and man- agement emphasizes the need for linking the process to per- formance measurement. This is necessary to be able to mon- itor whether plans are being achieved and whether corrective action needs to be taken. There is a great deal of literature on the general subject of performance measurement. An excellent and very compre- hensive study of the issue that pertains directly to transit is the 2003 TCRP Report 88: A Guidebook for Developing a Transit Performance-Measurement System (14). This report provides detailed guidance for developing a system using tra- ditional and nontraditional measures that address both cus- tomer and community issues.

STRATEGIC PLANNING AND ORGANIZATION DEVELOPMENT One of the strengths of strategic management is that it recog- nizes that strategic planning by itself often does little to change an organization’s direction, because it does not deal with the significant structural, political, and behavioral forces that tend to resist change. This point is made in two articles that argue for the blending or “marriage” of strategic planning and management and “Organization Development” (15, 16). Organization development (OD) seeks to develop and implement planned change strategies aimed at improving an organization’s effectiveness. It uses many tools or techniques to ensure that an organization has the internal capability to effectively achieve its goals and objectives. These include such activities as goal setting, leadership development, team building, employee feedback surveys, education and train- ing, organizational design, process consultation, coaching and counseling, and development of appropriate reward and recog- nition programs. In “For Successful Strategic Change: Blend OD Practices with Strategic Management” (15, p. 43), Buller suggests that OD tools can be helpful in the following phases of a typical strategic planning process: • Assessing and developing the organization’s readiness for change, • Facilitating the strategic planning process, • Helping with strategy implementation, and • Developing leadership skills. A similar point is made by Eadie and Steinbacher in “Strategic Agenda Management: A Marriage of Organiza- tional Development and Strategic Planning”; that is, that tra- ditional strategic planning too often results in “unimple- mentable strategies” (16, p. 424). In this article, the authors describe a case study of a large and complex public-sector organization in Ohio. They argue that strategic management can be one of the tools in the larger strategy of OD. More specifically they describe a concept of “strategic agenda management.” Strategic agenda management basically involves the “col- lective management of a strategic agenda, which changes as an organization’s problems and opportunities change.” The authors state that “effective strategic agenda management requires intensive, continuous, and collective involvement of senior management,” and that a strategic agenda must be highly selective if it is not to overtax the organization’s abil- ity to manage strategic issues (16, p. 425). The important point is that strategic planning and man- agement must pay close attention to not only the development of strategic initiatives but also to the organization’s capabil- ity to implement the initiatives. OD tools can be an important resource for developing or enhancing this capability. 10 NEW PARADIGMS IN PUBLIC TRANSPORTATION In the late 1990s, a group of transit industry leaders gathered under the aegis of the TCRP. The reason for this gathering was a shared concern that unless fundamental changes were made, the future of the transit industry was in jeopardy, owing to the significant changes taking place in the world and the inability of the transit industry to adapt to them (e.g., fundamental social and economic changes in this country, an emerging global economy, and the increasing significance of rapid advances in information technology). In 1997, a “future search conference” was organized by TCRP and the Eno Foundation to explore this issue. The con- ference included approximately 80 individuals representing transit managers, riders, drivers, labor leaders, political lead- ers, community residents and other important public trans- portation stakeholders. The effort led to a TCRP project that in 2003 culminated in a report that described emerging “new paradigms” that might affect the industry and that outlined a number of suggested responses (17). Many of the responses are such that strategic planning and management would be a key tool for developing and implementing them. The report points out that the transit industry has not changed its basic business model for more than 40 years. It also notes that although in recent years transit ridership has reached post-World War II highs, its market share of trips remains quite small. Moreover, increasing levels of automo- bile traffic are far outpacing the capacity of the street and highway system, thus leading to severe congestion and grid- lock in many areas. The project studied transportation in three key arenas else- where in transportation industries in search of lessons, or new models, for transit. 1. The “logistics revolution” in intermodal freight. 2. The rise of airline “alliances.” 3. New models for organizing and managing transit in Europe. In the freight arena, companies are finding ways to inte- grate their operations to better serve the door-to-door needs of their customers, encourage customer loyalty, and increase efficiency. This involves use of a logistics manager, who coordinates the movement of items from start to finish, and the use of powerful information technologies that allow uni- fied dispatching and tracking. Airlines have followed a very similar strategy, forming alliances with other carriers so that passengers can book trips through a single airline and so that the quality of service can be better tracked. Information tech- nology again plays a key role. Much the same is occurring in European transit. For exam- ple, even though there are a variety of operators that provide service in metropolitan London, London Transport has been empowered to set broad policy on fares, service coverage, and

11 service quality. It tracks efficiency and quality from the cus- tomer’s viewpoint. More recently, organizational changes are being made that give multimodal responsibility (buses, taxis, rail systems, ferries, and traffic control) to a new agency— Transport for London. The report goes on to identify four key elements of “the emerging paradigm”: 1. Emphasis on monitoring service quality and customer satisfaction across the entire network is replacing the previous emphasis on the operation of a particular agency’s vehicles and facilities. 2. New collaborative relationships or alliances are replac- ing independent agency operations and head-to-head competition. 3. Traditional assets such as vehicles, passenger terminals, and maintenance facilities are being jointly managed. 4. State-of-the-art information technology is being used to better manage operations, evaluate service quality, and provide customer information. A key theme of the emerging paradigm is that of “mobil- ity management,” the function of meeting the door-to-door travel needs of the customer no matter whose transportation assets are being used. This concept should be a central focus of the strategic planning efforts of transportation agencies. One of the new paradigm project reports includes as an appendix a guide that organizations can use for managing the change process (18). This includes strategies for • Recognizing the need for change, • Leading and planning change, • Making change happen, and • Institutionalizing new approaches. Most of the strategies described would be excellent com- ponents of an effective strategic planning and management process. The final report points out that transit agencies cannot do this alone, and that public policy decisions and public invest- ment must be coordinated in other key areas such as land use strategies, other public infrastructure investments (water, sew- ers, parking facilities, etc.), environmental measures (clean air and energy conservation), and other public policies such as tax incentives and economic development strategies. Because transit agencies have little or no control over these areas, they must work indirectly to encourage such coordination.

TRB’s Transit Cooperative Research Program (TCRP) Synthesis 59: Strategic Planning and Management in Transit Agencies examines the value and benefits of strategic planning and management in transit agencies. The report also provides case studies from five transit agencies based on the comprehensiveness of process or presence of innovative or noteworthy practices.

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Cultural Influences on the Process of Strategic Management pp 33–135 Cite as

What Is Strategic Management and Why Do We Need It: Theoretical Foundations of Strategic Management

  • Andreas Michael Schühly 6  
  • First Online: 01 January 2022

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2 Citations

Part of the book series: MIR Series in International Business ((MIRSIB))

In the second chapter, a sound understanding of strategic management and its core concepts, definitions, processes, and applications is provided. This is done by a review of relevant strategic management literature. Firstly, the applied methodology for the literature analysis is presented. This section provides an overview on the exhaustive range of approaches and understandings of the strategic management discipline, academic, and practice literature has developed. Included is an overview of historical developments of strategic management from early ancient concepts to modern strategic management. Further, fundamental concepts and three core theories of strategic management, i.e., market-based view, resource-based view, and the institution-based view, are discussed. The chapter also considers arguments opposing and supporting strategic management’s entitlement to exist. Furthermore, the process of strategic management with its four core process steps is introduced. Additionally, the answer to the research question is prepared by introducing factors that affect strategic management, such as institutional factors, market/industry factors, and organizational factors. Eventually, the strategic management process of multinational corporations in the field of tension between internal and external forces is debated along the two dimensions—structure and actors. Furthermore, procedural justice is discussed as organizational response to ensure efficiency in the strategic management process of multinational corporations as well as coordination and control mechanisms as enabler of multinational corporations’ strategic management processes.

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Cf. Bird and Mendenhall ( 2016 , p. 116), Bracker ( 1980 , p. 219), Mintzberg ( 1987a , p. 67, 1990 , p. 171).

Cf. Wolf and Floyd ( 2017 , p. 1757).

Cf. Pindur et al. ( 1995 , p. 59).

Cf. Barkema et al. ( 2015 , pp. 462f), Bracker ( 1980 , p. 219), Dent and Bozeman ( 2014 , p. 149), Mintzberg ( 1990 , p. 171), Talbot ( 2003 , pp. 2ff).

Cf. Bracker ( 1980 , p. 219), Hungenberg ( 2014 , p. 5).

Cf. Bracker ( 1980 , p. 219).

Cf. Mintzberg ( 1987b , p. 11), Talbot ( 2003 , pp. 1ff).

Socrates explained Nichomachides, who lost an election for a position as a general against a businessman, the similarties of a general’s with a businessman’s duties (see Xenophon ( 1994 )).

Cf. Xenophon ( 1994 , pp. 77ff).

See Goldsworthy ( 2010 ). Roskell and Taylor ( 1971 ).

Cf. Dent and Bozeman ( 2014 , p. 147), Pindur et al. ( 1995 , pp. 60f).

Cf. Barkema et al. ( 2015 , p. 467).

Cf. Pindur et al. ( 1995 , pp. 61f).

Cf. Burnes ( 2017 , p. 50), Conti ( 2013 , p. 11).

Cf. Dent and Bozeman ( 2014 , p. 158), Peaucelle and Guthrie ( 2013 , p. 49), Pindur et al. ( 1995 , pp. 60ff).

Cf. Pindur et al. ( 1995 , p. 62).

Cf. Cummings et al. ( 2017 , pp 237ff), Pindur et al. ( 1995 , pp. 64ff), Sanders and Kianty ( 2006 , p. 57).

Cf. Powell et al. ( 2010 , p. 342).

Cf. Aldrich ( 2004 , pp. 379ff), Cummings et al. ( 2017 , pp. 46ff), Hofstede ( 1993 , p. 93), Powell et al. ( 2010 , pp. 315ff).

Cf. Bea and Haas ( 2017 , p. 12), Bracker ( 1980 , p. 219), Ortmann and Seidl ( 2010 , p. 354).

Cf. Bea and Haas ( 2017 , pp. 12ff), Taylor ( 1986 , pp. 16ff).

Cf. Ortmann and Seidl ( 2010 , p. 354).

Cf. Bracker ( 1980 , p. 219), Hungenberg ( 2014 , pp. 5f), Hurst ( 1986 , p. 6).

Bracker ( 1980 , p. 219), Hurst ( 1986 , p. 6).

Cf. Hungenberg ( 2014 , pp. 5f).

Mintzberg ( 1990 , p. 171).

Cf. Bracker ( 1980 , p. 221).

Cf. Hurst ( 1986 , p. 6).

Cf. Webster et al. ( 1989 , pp. 5f).

Cf. Blagg ( 2008 , n.p.), Hoskisson et al. ( 1999 , pp. 422f), Hungenberg ( 2014 , p. 5), Kiechel III ( 2010 , p. 118), Seth ( 2015 , p. 6).

Cf. Bartlett and Ghoshal ( 1993 , p. 23), Geissler and Krys ( 2013 , p. 30).

Cf. Bea and Haas ( 2017 , p. 17), Chandler ( 1962 , pp. 13ff), Williams and van Triest ( 2009 , p. 157).

Chandler ( 1962 , pp. 13f).

Burgelman ( 1983 , pp. 62ff).

Lawrence and Lorsch ( 1969 , p. 54).

Cf. Ali and Shaw ( 1988 , p. 120).

Cf. Brock and Barry ( 2003 , p. 545), Miller and Cardinal ( 1994 , p. 1650).

Cf. Hofstede ( 1980b , pp. 49ff).

Cf. Williams and van Triest ( 2009 , p. 157).

Cf. Paterson and Brock (pp. 140ff).

See Andrews ( 1971 ), Ansoff ( 1965 ). Chandler ( 1962 ), Learned et al. ( 1969 ).

Cf. Hoskisson et al. ( 1999 , p. 422).

Cf. Guerras-Martín et al. ( 2014 , p. 69), Hoskisson et al. ( 1999 , p. 422).

Learned et al. ( 1969 , p. 15).

Cf. Hurst ( 1986 , pp. 6ff), Ocasio and Joseph ( 2008 , pp. 249ff), Webster et al. ( 1989 , p. 5).

Most notably are the BCG growth-share matrix, GE’s multifactorial analysis also called McKinsey’s 9-box matrix or the Ansoff matrix (Cf. Ali and Shaw 1988 , pp. 112f; Johnson et al. 2008 , p. 315; Ocasio and Joseph 2008 , p. 256; Kiechel III 2010 , pp. 57ff, 109).

Cf. Ali and Shaw ( 1988 , pp. 110ff), Bea and Haas ( 2017 , p. 13), Wolf and Floyd ( 2017 , p. 1763).

Cf. Bea and Haas ( 2017 , p. 13).

Cf. Ansoff ( 1969 , pp. 7f).

Cf. Bracker ( 1980 , pp. 219f).

Cf. Bonn and Christodoulou ( 1996 , p. 543).

Cf. Bea and Haas ( 2017 , pp. 7, 99).

Cf. Hofer and Schendel ( 1978 , pp. 18ff).

Bonn and Christodoulou ( 1996 , p. 543).

Cf. Hussey ( 1998 , p. 4), Martinet ( 2010 , p. 1485).

Their approach is based on four pillars “(1) the systematic differentiation between the internal and external perspective, (2) the integration of strategy as a separate element of the organizational lifeworld, (3) the conceptualization of the ‘ongoing process’ as the primary location of the genesis of strategies and (4) the exploration of alternative forms of rationality” Ortmann and Seidl ( 2010 , p. 358).

Cf. Ortmann and Seidl ( 2010 , p. 358).

Cf. Webster et al. ( 1989 , p. 5).

Cf. Wolf and Floyd ( 2017 , pp. 1760ff).

Wolf and Floyd ( 2017 , p. 1756).

Cf. Miller and Cardinal ( 1994 , p. 1662).

See Mintzberg ( 1994b ).

Cf. Wolf and Floyd ( 2017 , p. 1756).

Cf. Darr ( 2011 , p. 7), Pindur et al. ( 1995 , p. 63).

Eichhorn and Towers ( 2018 , p. 264)

Olarewaju ( 2012 , p. 552)

Cf. Eichhorn and Towers ( 2018 , pp. 12f), Saltorato and Benatti ( 2018 , p. 252)

Gopinath and Hoffman ( 1995 , p. 575)

Samiee and Athanassiou ( 1998 , p. 80).

Nag et al. ( 2007 , p. 942).

Judge and Speitzfaden ( 1995 , p. 179).

Gluck et al. ( 1980 , p. 156).

Cf. Ali and Shaw ( 1988 , p. 105), Boyd ( 1991 , p. 353).

Guerras-Martín et al. ( 2014 , p. 70).

Cf. Hungenberg ( 2014 , pp. 16f, 78f).

Lorange ( 1980 , p. 1).

Cf. Nag et al. ( 2007 , p. 942).

Hunger and Wheelen ( 2009 , pp. 10f).

Cf. Arend et al. ( 2017 , p. 1741), Veliyath ( 1992 , pp. 86ff).

Cf. Darr ( 2011 , 21), Johnson et al. ( 2008 , pp. 15ff).

Cf. Bea and Haas ( 2017 , pp. 57f).

In the Germano-phone area, the military general von Clausewitz is accredited for the incorporation of strategy in modern times. He described strategy as “the use of combat for the purpose of war ( Die Lehre vom Gebrauch der Gefechte zum Zweck des Krieges ).” (See von Oetinger et al. ( 2016 , p. 106)).

Cf. Eichhorn and Towers ( 2018 , pp. 281f).

Cf. Hunger and Wheelen ( 2009 , pp. 8f).

Cf. Hungenberg ( 2014 , pp. 4f).

Cf. Porter ( 1985 , p. 8).

Cf. Zahn and Foschiani ( 2001 , p. 414).

Cf. Mintzberg ( 1973 , pp. 44ff).

Cf. Hart ( 1992 , pp. 328f), Hunger and Wheelen ( 2009 , pp. 12f), Mintzberg ( 1973 , pp. 44ff).

Cf. Hart ( 1992 , pp. 328ff).

Cf. Quinn ( 1978 , pp. 14ff).

Quinn ( 1980 , p. 58).

Cf. Hart ( 1992 , pp. 328ff), Hunger and Wheelen ( 2009 , pp. 6f).

See Simon ( 1957 ).

Douma and Schreuder ( 2002 , p. 147).

Cf. Simon ( 1972 , pp. 173ff).

Cf. Camillus ( 2018 , pp. 920f).

Cf. Mintzberg ( 1973 , p. 52).

Cf. Hungenberg ( 2014 , p. 4).

Cf. Ali and Shaw ( 1988 , pp. 106ff).

Cf. Brock et al. ( 2000 , p. 689).

Cf. Brock et al. ( 2000 , p. 690).

Cf. Fredrickson and Mitchell ( 1984 , pp. 401ff).

Cf. Das ( 1991 , p. 52).

Cf. Brock and Barry ( 2003 , p. 543), Ramanujam and Venkatraman ( 1987 , p. 455).

Cf. Ramanujam and Venkatraman ( 1987 , pp. 455, 463), Veliyath and Shortell ( 1993 , pp. 361f).

Cf. Hungenberg ( 2014 , pp. 4,15f).

Cf. Brock et al. ( 2000 , pp. 690), Veliyath and Shortell ( 1993 , pp. 361f).

Cf. Lorange ( 1980 , pp. 74f).

Cf. Brock and Barry ( 2003 , p. 547), Weidenbaum ( 1966 , pp. 8ff).

Cf. Arend et al. ( 2017 , p. 1741), Barringer and Bluedorn ( 1999 , p. 422), Robinson Jr and Pearce ( 1983 , p. 198), Wolf and Floyd ( 2017 , p. 1768).

Cf. Brock et al. ( 2000 , p. 691), Veliyath and Shortell ( 1993 , p. 361).

Cf. Hopkins and Hopkins ( 1997 , pp. 636f).

Mintzberg and Lampel ( 1999 , p. 22).

Cf. Armstrong ( 1982 , pp. 198f).

Chong and Park ( 2003 , p. 34).

Cf. Dibrell et al. ( 2014 , pp. 2004ff).

Cf. Bachmann et al. ( 2016 , p. 301), Dincer et al. ( 2006 , p. 208), Mintzberg ( 1994a , p. 24), Wolf and Floyd ( 2017 , p. 1772).

Cf. Wolf and Floyd ( 2017 , p. 1772).

Shaw et al. ( 1998 , p. 42).

Cf. Eppler and Platts ( 2009 , pp. 42ff), Shaw et al. ( 1998 , pp. 41f), Wolf and Floyd ( 2017 , pp. 1772).

The agency theory provides insights into the delegation of decision-making from a principal (e.g., owner) to an agent (e.g., management) and resulting issues. It assumes risk aversity and self-interest of actors. Furthermore, it assumes asymmetric information between actors as well as goal incongruence. Through contracts principals hand over decision-making power and try to control agent’s behavior; however, they still bear uncertainty about the actual behavior of agents See Chang and Taylor ( 1999 , p. 543), Zajac ( 1990 , p. 217).

Cf. Zajac ( 1990 , pp. 218, 227).

Moisander and Stenfors ( 2009 , p. 228).

Cf. Oliver and Parrett ( 2018 , p. 340).

Cf. Moisander and Stenfors ( 2009 , p. 243).

Cf. Arend et al. ( 2017 , pp. 1741ff), Moisander and Stenfors ( 2009 , pp. 241f).

Cf. Ali and Shaw ( 1988 , p. 124).

Cf. Jennings ( 2000 , pp. 213ff).

Cf. Brock et al. ( 2000 , p. 689), Hunger and Wheelen ( 2009 , p. 3).

Cf. Hunger and Wheelen ( 2009 , p. 3).

Cf. Jocumsen ( 2004 , 669f), Johnson et al. ( 2008 , p. 607), Miller and Cardinal ( 1994 , p. 1651), Moisander and Stenfors ( 2009 , pp. 228ff).

Darr ( 2011 , p. 20).

Wolf and Floyd ( 2017 , p. 1764).

Cf. Gluck et al. ( 1982 , p. 9).

Cf. Ansoff ( 1979 , pp. 5ff).

Cf. Wernham ( 1985 , p. 636).

Hussey ( 1998 , p. 12).

Cf. Hart and Banbury ( 1994 , p. 251).

Cf. Bea and Haas ( 2017 , pp. 13f).

Cf. Hungenberg ( 2014 , pp. 6f), Mintzberg ( 1987b , pp. 11f).

Cf. Porter ( 1985 , pp. 482ff).

Cf. Hungenberg ( 2014 , pp. 6f), Mintzberg ( 1987b , pp. 11ff), Mintzberg and Waters ( 1985 , pp. 259ff).

See Boyd ( 1991 ), Brews and Hunt ( 1999 ), Hoffman ( 2007 ), Miller and Cardinal ( 1994 ).

Cf. Brews and Hunt ( 1999 , pp. 890f), Hoffman ( 2007 , p. 28), Parnell et al. ( 2000 , p. 521).

Cf. Brews and Hunt ( 1999 , 891f), Hoffman ( 2007 , 28f).

Cf. Brews and Hunt ( 1999 , pp. 890ff), Hoffman ( 2007 , pp. 28f), Parnell et al. ( 2000 , p. 521).

Cf. Mintzberg ( 1987b , pp. 14ff), Mintzberg and Waters ( 1985 , pp. 257ff).

Mintzberg and McHugh ( 1985 , p. 161).

Cf. Mintzberg and Waters ( 1985 , pp. 268f).

Cf. Mintzberg ( 1994b , p. 111).

Cf. Porter ( 1994 , pp. 273ff).

Cf. Martinet ( 2010 , p. 1486).

Cf. Mauri and Michaels ( 1998 , p. 217).

Cf. Camillus ( 2018 , p. 920).

Cf. Slevin and Covin ( 1997 , pp. 201ff).

Cf. Burgelman ( 1983 , pp. 62ff), Samiee and Athanassiou ( 1998 , p. 89).

Cf. Acar and Acar ( 2012 , p. 684), Porter ( 1985 , pp. 268f).

Cf. Burgelman ( 1983 , p. 61).

Luo et al. ( 2011 , pp. 190f).

See Porter ( 1980 , 1985 ).

Cf. Ali and Shaw ( 1988 , p. 124), Idenburg ( 1993 , p. 133), Porter ( 1985 , pp. 25f), Wolf and Floyd ( 2017 , p. 1767).

See Ansoff ( 1987 ).

See Mintzberg and Waters ( 1985 ).

Cf. Hart ( 1992 , pp. 330ff).

Cf. Hart ( 1992 , pp. 332).

Cf. Nonaka ( 1988 , pp. 13ff).

Cf. Crook et al. ( 2006 , p. 409), Degravel ( 2015 , p. 13).

See Porter ( 1980 ).

See Barney ( 1991 ). Wernerfelt ( 1984 ).

While literature uses both market- and industry-based views, the following thesis is using market-based view; however, verbal quotes might also use industry-based view, which can therefore be seen as a synonym.

Cf. Peng et al. ( 2008 , pp. 920ff), Zahn ( 1999 , p. 1).

Cf. Hungenberg ( 2014 , pp. 71f).

Wernerfelt ( 1984 , p. 171).

Cf. Bamberger and Wrona ( 1996 , p. 147), Kraaijenbrink et al. ( 2010 , p. 350).

Cf. Hoskisson et al. ( 1999 , pp. 420ff).

Cf. Johnson et al. ( 2008 , pp. 116ff).

Cf. Peng et al. ( 2008 , pp. 920f).

Cf. Peng ( 2002 , pp. 251ff).

Peng et al. ( 2008 , p. 923).

Cf. Peng ( 2002 , pp. 252f).

See Porter ( 1980 ), (1985).

Cf. Powell ( 1992 , p. 552).

Cf. Mintzberg ( 1987b , pp. 15f).

Cf. Hoskisson et al. ( 1999 , pp. 419, 425).

Cf. Bea and Haas ( 2017 , pp. 29f), McWilliams and Smart ( 1993 , pp. 63ff).

Cf. Porter ( 1980 , pp. ix ff).

Cf. Hungenberg ( 2014 , pp. 59ff).

It is composed of the forces: threat of new entrants, bargaining power of buyers, threat of substitute products or services, bargaining power of suppliers, and rivalry among existing firms (see Porter ( 1980 , pp. 6ff)).

Cf. Porter ( 1980 , pp. 6ff).

Cf. Bea and Haas ( 2017 , pp. 109ff).

Porter ( 1985 , pp. 4ff).

Cf. Porter ( 1985 , pp. 4ff).

Cf. Grundy ( 2006 , pp. 213ff).

Cf. Porter ( 1980 , pp. 35ff).

See Acar and Acar ( 2012 , p. 684), Brock and Barry ( 2003 , p. 549).

Cf. Porter ( 1980 , pp. 38ff).

Cf. Brock and Barry ( 2003 , p. 549).

Cf. Miller ( 1986 , pp. 239f, 1988 , pp. 284f).

Cf. Porter ( 1985 , pp. 11f, 15f).

Porter ( 1980 , p. 38).

Porter ( 1985 , p. 16).

Cf. Miller ( 1989 , p. 242), Parnell et al. ( 2000 , p. 521).

Cf. Porter ( 1980 , pp. 9ff).

Porter ( 1985 , p. 7).

Cf. Porter ( 1985 , p. 7).

Cf. Johnson et al. ( 2008 , pp. 242ff; 624).

Cf. McWilliams and Smart ( 1993 , pp. 68f).

Cf. Knecht ( 2014 , p. 19).

See Wernerfelt ( 1984 ).

Cf. Hoskisson et al. ( 1999 , pp. 419ff), Zubac et al. ( 2010 , p. 516).

Cf. Powell et al. ( 2010 , p. 318).

Cf. Zubac et al. ( 2010 , p. 515).

Wolf and Floyd ( 2017 , p. 1773).

See Barney ( 1991 , pp. 105ff), Hart and Banbury ( 1994 , pp. 265f), Wernerfelt ( 1984 , pp. 172ff).

Birkinshaw ( 2000 , p. 102).

Birkinshaw ( 2000 , p. 107).

Cf. Birkinshaw ( 2000 , pp. 105ff).

Cf. Collis and Montgomery ( 1995 , p. 119), Degravel ( 2015 , pp. 13f)., Powell ( 1992 , p. 552), Vega-Jurado et al. ( 2008 , p. 617), Zubac et al. ( 2010 , 517ff).

Cf. Eisenhardt and Martin ( 2000 , pp. 1106f).

Cf. Barney ( 1991 , pp. 105ff), Hoskisson et al. ( 1999 , pp. 418ff), Powell ( 1992 , pp. 552f).

Cf. Acar and Acar ( 2012 , p. 684), Li et al. ( 2001 , p. 116), Vega-Jurado et al. ( 2008 , p. 617).

Cf. Conner ( 1991 , p. 121).

Cf. Helfat and Peteraf ( 2003 , pp. 998f), Sirmon et al. ( 2007 , p. 274).

Cf. Barney ( 1991 , pp. 101ff).

Cf. Barney ( 2001 , p. 648).

Cf. Barney ( 1991 , p. 102), Degravel ( 2015 , p. 13).

Cf. Ambrosini et al. ( 2009 , p. 9f), Barney ( 1991 , pp. 105ff), Powell ( 1992 , pp. 552f), Priem and Butler ( 2001 , p. 23), Sirmon et al. ( 2007 , p. 274).

Cf. Peteraf ( 1993 , pp. 183ff).

Teece ( 2007 , p. 1325).

Cf. Barney ( 1991 , pp. 102ff), Ghoshal ( 1988 , pp. 83f), Teece ( 2007 , pp. 1319ff).

Cf. Teece et al. ( 1997 , pp. 516ff), Teece ( 2007 , p. 1319).

Eisenhardt and Martin ( 2000 , p. 1106).

Cf. Helfat and Peteraf ( 2003 , pp. 998f), Teece et al. ( 1997 , pp. 517ff).

Cf. Teece et al. ( 1997 , p. 528).

Cf. Teece ( 2007 , pp. 1322ff).

Eisenhardt and Martin ( 2000 , p. 1117).

Cf. Eisenhardt and Martin ( 2000 , p. 1106).

Cf. Brews and Hunt ( 1999 , pp. 905f).

Cf. Hart and Banbury ( 1994 , p. 256).

Cf. Powell ( 1992 , p. 553).

Cf. Campbell ( 1999 , pp. 41ff).

Cf. Acar and Acar ( 2012 , p. 684).

Cf. Wolf and Floyd ( 2017 , p. 1771).

Cf. Barney ( 1986 , pp. 656ff), Fiol ( 1991 , pp. 191ff), Hamel and Prahalad ( 1990 , pp. 87ff), Hansen and Wernerfelt ( 1989 , p. 401), Powell ( 1992 , p. 552).

Cf. Bea and Haas ( 2017 , pp. 30ff).

Cf. Hamel and Prahalad ( 1990 , pp. 86ff).

Cf. Javidan ( 1998 , pp. 61ff).

Cf. Nonaka and Toyama ( 2003 , p. 4).

Cf. Bea and Haas ( 2017 , p. 33).

Cf. Grant ( 1996 , p. 111).

Cf. Zahn and Foschiani ( 2001 , p. 417).

Cf. Nonaka et al. ( 2000 , pp. 10ff).

The transfer of tacit knowledge through shared experiences is called socialization. Externalization describes the transfer from tacit knowledge into explicit knowledge to serve as the basis of new knowledge. Combination covers when existing explicit knowledge that can originate from inside or outside the organization is combined, edited, or processed to gain new knowledge that is more complex and systematic. The internalization is transferring explicit knowledge into tacit knowledge (see Nonaka et al. ( 2000 , pp. 8ff), Nonaka and Toyama ( 2003 , pp. 4f)).

Cf. Nonaka et al. ( 2000 , pp. 8ff), Nonaka and Toyama ( 2003 , pp. 4f).

Cf. Degravel ( 2015 , p. 13), Eisenhardt and Martin ( 2000 , p. 1106), Kraaijenbrink et al. ( 2010 , p. 351), Priem and Butler ( 2001 , 27ff).

Kraaijenbrink et al. ( 2010 , p. 351).

Cf. Kraaijenbrink et al. ( 2010 , pp. 351, 361).

Peng et al. ( 2008 , p. 929).

Cf. Peng ( 2002 , pp. 251ff), Peng et al. ( 2008 , pp. 920ff).

North ( 1990 , p. 3).

Scott ( 1995 , p. 33).

Cf. Peng et al. ( 2008 , pp. 921f).

Davis and North ( 1971 , p. 6).

Cf. Peng ( 2002 , p. 252).

Cf. Holmes et al. ( 2013 , pp. 533ff), North ( 1990 , pp. 3ff), Peng et al. ( 2008 , pp. 921ff), Scott ( 1995 , pp. 35ff).

Cf. Barley and Tolbert ( 1997 , pp. 93ff), Holmes et al. ( 2013 , pp. 533).

Cf. Powell ( 1991 , pp. 183ff), Witt and Redding ( 2009 , pp. 859ff).

Cf. Holmes et al. ( 2013 , p. 535).

Cf. North ( 1991 , p. 97, 1993 , p. 7).

See Coase ( 1937 ).

See Williamson ( 1973 , 1979 , 1994 ).

Cf. North ( 1987 , pp. 419ff), Williamson ( 2000 , pp. 599ff).

Cf. Bea and Haas ( 2017 , pp. 28ff), Williamson ( 1994 , pp. 81ff, 2000 , p. 599).

See Sect. 2.2.2 .

Cf. Chen et al. ( 2002 , p. 567), Douma and Schreuder ( 2002 , p. 145), Simon ( 1972 , pp. 163ff), Williamson ( 1994 , p. 107).

Cf. Chen et al. ( 2002 , pp. 569ff), Ghoshal and Moran ( 1996 , p. 14), Sheng et al. ( 2018 , pp. 2ff).

Williamson ( 1993 , p. 476).

Cf. Chen et al. ( 2002 , p. 568).

Cf. Peng et al. ( 2008 , p. 930), Williamson ( 1994 , pp. 77ff).

Cf. Peng ( 2002 , pp. 252f, 2003 , pp. 275ff), Peng et al. ( 2008 , pp. 922f).

Cf. Peng ( 2002 , pp. 256f), Peng et al. ( 2008 , p. 923).

Cf. Peng ( 2002 , p. 261), Peng et al. ( 2008 , p. 930).

Schendel ( 1992 , p. 3).

See Ansoff et al. ( 1970 ). Chandler ( 1962 ), Learned et al. ( 1969 ), Thune and House ( 1970 ).

Cf. Powell ( 1992 , p. 551).

See Mintzberg et al. ( 1986 ), Quinn ( 1980 ). Sarrazin et al. ( 1977 ).

See Boyd ( 1991 ). Fredrickson and Mitchell ( 1984 ), Pearce et al. ( 1987a ), Powell ( 1992 ).

See Bresser and Bishop ( 1983 ), Mintzberg ( 1987c ).

Cf. Ali ( 2018 , p. 11), Arend et al. ( 2017 , p. 1743), Miller and Cardinal ( 1994 , pp. 1650f).

Hurst ( 1986 , pp. 24f).

See Grinyer and Norburn ( 1975 ). Rhenman ( 1973 ).

Miller and Cardinal ( 1994 , p. 1651).

Cf. Pearce et al. ( 1987a , pp. 670ff).

Cf. Boyd ( 1991 , pp. 362f).

Cf. O’Gorman and Doran ( 1999 , p. 65).

See Ansoff ( 1991 ). Armstrong ( 1982 ), Barringer and Bluedorn ( 1999 ), Hoffman ( 2007 ), Miller and Cardinal ( 1994 ), Pearce et al. ( 1987b ).

Cf. Ansoff ( 1991 , pp. 455ff).

Cf. Salomo et al. ( 2007 , pp. 297f).

Cf. Armstrong ( 1982 , pp. 199f).

Cf. Ansoff ( 1991 , p. 456).

Cf. Smith and Grimm ( 1987 , pp. 363ff).

Cf. Pearce et al. ( 1987b , pp. 125ff).

Cf. Schwenk and Shrader ( 1993 , pp. 53ff).

Cf. Miller and Cardinal ( 1994 , pp. 1660f).

Cf. Barringer and Bluedorn ( 1999 , pp. 433ff).

Cf. Hoffman ( 2007 , p. 42).

Cf. Rudd et al. ( 2008 , pp. 99f, 104).

Cf. Rudd et al. ( 2008 , p. 100).

Cf. Glaister et al. ( 2008 , p. 370).

Cf. Glaister et al. ( 2008 , pp. 377ff).

Cf. Arend et al. ( 2017 , pp. 1748f).

Cf. Mueller et al. ( 2007 , pp. 854ff).

Cf. Veliyath and Shortell ( 1993 , p. 359).

Cf. Capon et al. ( 1994 , p. 108).

Cf. Boyd ( 1991 , pp. 362f), Hart and Banbury ( 1994 , pp. 252f), Miller and Cardinal ( 1994 , pp. 1662f), Powell ( 1992 , pp. 554ff).

Cf. Lyles et al. ( 1993 , pp. 47f).

Cf. Falshaw et al. ( 2006 , pp. 23f).

Cf. Ali and Shaw ( 1988 , pp. 112f).

Cf. Ireland et al. ( 1987 , pp. 481f).

Cf. Miller and Cardinal ( 1994 , pp. 1652ff), Parnell et al. ( 2000 , pp. 521).

Cf. Peterson et al. ( 2002 , p. 252), Zahn and Foschiani ( 2006 , p. 82f), Zuckerman ( 2011 , pp. 1ff).

Mintzberg ( 1990 , p. 184).

Cf. Mintzberg ( 1990 , p. 184).

Cf. Armstrong ( 1982 , p. 202).

Cf. Zahn and Foschiani ( 2006 , p. 83).

See Ansoff ( 1991 ), Baum and Wally ( 2003 ). Miller and Friesen ( 1983 ), Pearce et al. ( 1987a ).

Cf. Brews and Hunt ( 1999 , pp. 889ff).

Cf. Brews and Purohit ( 2007 , pp. 64ff).

Cf. Yusuf and Nyomori ( 2002 , pp. 11ff).

See Brews and Hunt ( 1999 ). Goll and Rasheed ( 1997 ).

Cf. Hoffman ( 2007 , p. 27).

Cf. Hungenberg ( 2014 , pp. 86f).

Cf. Ansoff ( 1991 , p. 457), Armstrong ( 1982 , pp. 202f), Miller and Cardinal ( 1994 , p. 1652).

Cf. Courtney et al. ( 1997 , pp. 67ff), Parnell et al. ( 2000 , p. 521).

Cf. Armstrong ( 1982 , p. 203).

Cf. Hutzschenreuter and Kleindienst ( 2006 , p. 676).

Cf. Ashmore ( 1992 , pp. 57ff).

Souitaris and Marcello Maestro ( 2010 , p. 658).

Cf. Baum and Wally ( 2003 , pp. 1107f, 1125).

Cf. Forbes ( 2005 , pp. 360ff), Perlow et al. ( 2002 , pp. 947f).

Cf. Miller and Cardinal ( 1994 , pp. 1649f).

Cf. Arend et al. ( 2017 , p. 1741), Wolf and Floyd ( 2017 , p. 1767).

Cf. Leonard-Barton ( 1992 , pp. 118ff), Slotegraaf and Dickson ( 2004 , pp. 380f).

Cf. Arend et al. ( 2017 , pp. 1743, 1743).

Cf. Arend et al. ( 2017 , p. 1741), Grant ( 2003 , p. 509).

Cf. Griffin ( 1997 , pp. 30ff).

Cf. Brown and Eisenhardt ( 1995 , pp. 372ff).

Ali and Shaw ( 1988 , p. 107).

Cf. Brock and Barry ( 2003 , p. 555).

Cf. Brock and Barry ( 2003 , p. 548), Lorange ( 1980 , pp. 2ff), Miller and Cardinal ( 1994 , p. 1651), Robinson Jr and Pearce ( 1983 , pp. 197ff).

Cf. Brock and Barry ( 2003 , p. 548).

Brock and Barry ( 2003 , p. 544).

Please refer to Sect. 2.2.2 .

Cf. Ansoff ( 1987 , p. 505), Camillus ( 2018 , pp. 920f), Quinn ( 1980 , pp. 97ff).

van Maanen and Schein ( 1977 , pp. 1f).

Cf. Griffeth et al. ( 2000 , pp. 483ff).

Cf. Kaplan and Minton ( 2012 , p. 81).

Cf. Palomino and Peyrache ( 2013 , pp. 1301f).

Cf. Brews and Purohit ( 2007 , pp. 78f), Burgelman et al. ( 2018 , pp. 535f).

Cf. Hutzschenreuter and Kleindienst ( 2006 , pp. 702ff).

Brock et al. ( 2000 , p. 689).

Mintzberg ( 1973 , p. 53).

Hamel ( 1996 , p. 70).

See Lyles et al. ( 1993 ), Nadler ( 1994 ).

Cf. Greenley ( 1994 , p. 384).

Cf. Nadler ( 1994 , p. 30).

See Ansoff ( 1991 ). Armstrong ( 1982 ), Grinyer et al. ( 1986 ).

Cf. Miller and Cardinal (p. 1650).

Eichhorn and Towers ( 2018 , p. 2).

Cf. Falshaw et al. ( 2006 , p. 11).

Cf. Bromiley and Rau ( 2016 , p. 174).

See Gluck et al. ( 1982 ), Hax and Majluf ( 1984 ), Hunger and Wheelen ( 2009 ), Hurst ( 1986 ).

Cf. Hungenberg ( 2014 , pp. 19f).

Cf. Hunger and Wheelen ( 2009 , pp. 4ff).

Cf. Barr and Glynn ( 2004 , p. 65).

Cf. Barkema et al. ( 2015 , p. 463), Barringer and Bluedorn ( 1999 , p. 423).

Cf. Aldehayyat ( 2011 , pp. 193ff, 2015 , pp. 459ff), Ginter and Duncan ( 1990 , pp. 91ff), Hambrick ( 1982 , pp. 159ff).

Cf. Aldehayyat ( 2011 , pp. 193ff, 2015 , pp. 459ff), Bérard and Delerue ( 2010 , p. 168), Ghoshal ( 1988 , p. 69), Hambrick ( 1982 , pp. 159ff), Jain ( 1984 , pp. 117ff), Porter ( 1985 , p. 451).

Aguilar ( 1967 , p. 1).

Classical decision theory assumes a sequential three-step process starting by “ask[ing] the right questions, continues by discovering creative answers and finishes by making sure that the chosen solution is valuable and useful” and thereby assumes fully rational decision-makers who base their decisions on full certainty and with a complete set of information (Li 2008 , p. 151).

Cf. Feldman and March ( 1981 , p. 182).

Cf. Feldman and March ( 1981 , p. 175).

Daft and Weick ( 1984 , p. 286).

Cf. Choo ( 2001 , n.p.), Daft et al. ( 1988 , pp. 126ff).

Cf. Daft and Weick ( 1984 , pp. 286ff).

Cf. Choo ( 2001 , n.p.).

Cf. Daft and Weick ( 1984 , pp. 285ff), Sirmon et al. ( 2007 , pp. 274ff), Vecchiato ( 2015 , pp. 257ff).

Cf. Barringer and Bluedorn ( 1999 , p. 423).

Cf. Hunger and Wheelen ( 2009 , pp. 6; 49f).

Cf. Ebrahimi ( 2000 , pp. 68f).

Cf. Daft et al. ( 1988 , pp. 135f).

Cf. Choo ( 2001 , n.p.), Ebrahimi ( 2000 , p. 76), Hungenberg ( 2014 , pp. 87ff).

Cf. Barron et al. ( 2015 , 601ff).

Cf. Miller and Friesen ( 1983 , p. 223).

Cf. Bachmann et al. ( 2016 , p. 299).

Cf. Barringer and Bluedorn (pp. 433ff).

Cf. Rogers et al. ( 1999 , pp. 567ff).

Cf. Aldehayyat ( 2015 , p. 475).

Please refer to section “Market-Based View”.

Cf. Jennings and Lumpkin ( 1992 , p. 799).

Cf. Jain ( 1984 , pp. 117ff), Thomas ( 1980 , pp. 20ff).

Cf. Ebrahimi ( 2000 , p. 68).

Cf. Chattopadhyay et al. ( 2001 , p. 952).

Cf. O’Regan et al. ( 2007 , pp. 6ff).

Cf. Sallivan and Nonaka ( 1988 , pp. 6ff).

Cf. Daft et al. ( 1988 , pp. 135ff).

Cf. Schneider and De Meyer ( 1991 , pp. 307ff).

Cf. Hambrick and Mason ( 1984 , p. 193).

Cf. Ireland et al. ( 1987 , p. 470), Knight et al. ( 1999 , pp. 445ff), Souitaris and Marcello Maestro ( 2010 , pp. 653ff), Wang et al. ( 2012 , pp. 572ff).

Cf. Hutzschenreuter and Kleindienst ( 2006 , pp. 676f).

Cf. Hambrick and Mason ( 1984 , pp. 197ff), Peterson et al. ( 2002 , pp. 245f).

Cf. Hambrick and Mason ( 1984 , pp. 197ff), Knight et al. ( 1999 , pp. 445ff), Peterson et al. ( 2002 , p. 247)

Wang et al. ( 2012 , p. 572).

Cf. Souitaris and Marcello Maestro (p. 654).

Cf. López-Duarte et al. ( 2016 , pp. 411ff).

Cf. Aldehayyat ( 2015 , pp. 459ff), Daft et al. ( 1988 , pp. 124f), Ebrahimi ( 2000 , p. 68).

Cf. Aldehayyat ( 2015 , pp. 459ff), Ebrahimi ( 2000 , pp. 68f), Hungenberg ( 2014 , pp. 88ff).

Cf. Johnson et al. ( 2008 , p. 65).

Cf. Burgelman et al. ( 2018 , p. 537), Eichhorn and Towers ( 2018 , p. 284), Johnson et al. ( 2008 , p. 102), Wolf and Floyd ( 2017 , p. 1772).

Schneider and De Meyer ( 1991 , p. 307).

Cf. Hungenberg ( 2014 , p. 85).

Cf. Bachmann et al. ( 2016 , p. 300), Gopinath and Hoffman ( 1995 , p. 577), Hungenberg ( 2014 , p. 9).

Cf. Schneider and De Meyer ( 1991 , p. 307).

Cf. Waddock and Isabella ( 1989 , pp. 626ff).

Cf. Newgren et al. ( 1984 , pp. 352ff).

Cf. West ( 1990 , pp. 87ff).

Cf. Subramanian et al. ( 1993 , pp. 271ff).

Cf. Costa ( 1995 , pp. 4ff).

Cf. Bachmann et al. ( 2016 , p. 299), Barringer and Bluedorn ( 1999 , 432ff).

Cf. Aldehayyat ( 2015 , pp. 474f).

Cf. Lenz and Engledow ( 1986 , pp. 70f).

Hunger and Wheelen ( 2009 , p. 6).

Cf. Palich and Gomez-Mejia ( 1999 , p. 596).

Cf. Schneider ( 1989 , pp. 149ff).

Cf. Parnell et al. (p. 525).

Cf. Ali and Shaw ( 1988 , p. 110), Hay and Usunier ( 1993 , pp. 317ff).

Hoffman ( 2007 , p. 28).

Cf. Mintzberg ( 1993 , p. 32).

Cf. Armstrong ( 1982 , p. 199).

Cf. Bea and Haas ( 2017 , pp. 70ff), Hay and Usunier ( 1993 , pp. 315ff), Hungenberg ( 2014 , pp. 9ff), Hunger and Wheelen ( 2009 , pp. 6ff), Johnson et al. ( 2008 , p. 209), Pasha and Poister ( 2017 , pp. 504ff).

Cf. Hunger and Wheelen ( 2009 , p. 9).

Cf. Clercq et al. ( 2010 , pp. 87ff).

Cf. Armstrong ( 1982 , pp. 198ff), Idenburg ( 1993 , p. 133f).

Cf. Hungenberg ( 2014 , p. 10).

Singh ( 1998 , p. 146).

Cf. Hrebiniak ( 2006 , pp. 12, 14), Li et al. ( 2008 , pp. 3ff).

Cf. Hungenberg ( 2014 , p. 10), Hunger and Wheelen ( 2009 , p. 9).

Cf. Li et al. ( 2008 , pp. 18ff), Powell ( 1992 , p. 552).

Cf. Judge and Stahl ( 1995 , p. 105).

Cf. Alexander ( 1985 , pp. 91ff), Allio ( 2005 , pp. 12ff).

Cf. Kim and Mauborgne ( 1995 , pp. 44ff), Singh ( 1998 , pp. 160ff).

Cf. Alexander ( 1985 , pp. 91ff), Hrebiniak ( 2006 , p. 13), Li et al. ( 2008 , pp. 11ff).

Allio ( 2005 , p. 13).

Cf. Bourgeois and Eisenhardt ( 1988 , p. 833).

Cf. Mufudza et al. ( 2013 , pp. 24ff).

Cf. Hunger and Wheelen ( 2009 , p. 2).

Cf. Hungenberg ( 2014 , pp. 10f), Palich and Gomez-Mejia ( 1999 , p. 598).

Cf. Bea and Haas ( 2017 , pp. 19ff), Hunger and Wheelen ( 2009 , pp. 10f), Palich and Gomez-Mejia ( 1999 , p. 598).

Cf. Miller and Cardinal ( 1994 , p. 1651).

Cf. Chandler ( 1962 , pp. 13f), Hungenberg ( 2014 , pp. 9f).

Cf. Schreyögg and Steinmann ( 1987 , p. 91).

Cf. Argyris ( 1977 , p. 114).

Cf. de Waal and de Boer ( 2017 , p. 150).

Armstrong ( 1982 , p. 198).

Cf. Armstrong ( 1982 , p. 200), Hunger and Wheelen ( 2009 , pp. 10f).

Cf. Barringer and Bluedorn ( 1999 , pp. 426f).

Hofstede ( 1980b , p. 49).

Cf. Bracker ( 1980 , p. 219), Hofstede ( 1983 , 75ff, 1993, p. 93), Holt ( 2011 , pp. 80f), Samiee and Athanassiou ( 1998 , p. 86).

Cf. Bird and Mendenhall ( 2016 , p. 116).

Between 2000 and 2015, the number of US companies in the Fortune Global 500 list declined from 179 to 128, while the number of Chinese firms grew from 10 to 98. Similarly in the year 2000, 17 of the top 20 business schools in the Financial Times Full-time MBA ranking were located in the USA, while this number declined to 10 business schools in 2015 (see Whittington ( 2017 , p.34)).

Cf. Whittington ( 2017 , p. 34).

Cf. Adegboye ( 2013 , p. 206), Harzing et al. ( 2009 , p. 418), Hoffman ( 2007 , p. 27), Parnell et al. ( 2000 , p. 520).

Cf. Ang and Massingham ( 2007 , p. 16).

Cf. Peng et al. ( 2008 , p. 921).

Cf. Ansoff ( 1987 , pp. 505ff), Holt ( 2011 , p. 83), Schneider and De Meyer ( 1991 , p. 308).

Cf. Elbanna and Child ( 2007 , pp. 569f, 577), Iaquinto and Fredrickson ( 1997 , pp. 66f).

Cf. Amason and Sapienza ( 1997 , p. 499), Haleblian and Finkelstein ( 1993 , pp. 845ff, 855ff), Iaquinto and Fredrickson ( 1997 , pp. 66f), Yoon et al. ( 2016 , pp. 762f, 772ff).

Cf. Ferrier ( 2001 , p. 862), Rao and Tilt ( 2016 , 333ff), Yoon et al. ( 2016 , pp. 764ff, 772).

Cf. Chen and Li ( 2005 , pp. 626f, 630ff), Hitt et al. ( 1997 , p. 160).

Cf. Ferrier ( 2001 , p. 862), Iaquinto and Fredrickson ( 1997 , pp. 66f), Tulung and Ramdani ( 2016 , p. 164).

Please refer to section “Factors Influencing Environmental Scanning”.

Cf. Schneider and De Meyer ( 1991 , p. 308).

Cf. Dean Jr and Sharfman ( 1993 , p. 589), Dutton ( 1993 , p. 339), Dutton and Ashford ( 1993 , p. 397), Rindova ( 1999 , p. 954).

Ali and Shaw ( 1988 , p. 125).

Cf. Huang ( 2009 , pp. 2ff).

Cf. Bartlett and Ghoshal ( 1991 , p. 9).

Cf. Meyer and Rowan ( 1977 , p. 346), Peng et al. ( 2008 , p. 923).

Ingram and Silverman ( 2002 , p. 20).

Cf. Gerhart ( 2008 , pp. 259f).

Cf. Hofstede ( 1980b , p. 62).

Cf. Li et al. ( 2001 , p. 117), Tutar et al. ( 2014 , p. 351).

Cf. Singh ( 2007 , p. 425).

Cf. Holmes et al. ( 2013 , pp. 535ff), March and Olsen ( 1983 , pp. 734ff).

Cf. Holmes et al. ( 2013 , p. 535), Jackson and Deeg ( 2008 , pp. 541, 555), Levy and Pablo ( 1993 , pp. 215ff), Richter et al. ( 2016 , p. 65).

Cf. Holmes et al. ( 2013 , pp. 535ff), Lozano and Rodríguez ( 2011 , pp. 206ff).

Cf. Barkema et al. ( 2015 , p. 462), Peng et al. ( 2008 , p. 921).

Cf. Peterson et al. ( 2002 , p. 252).

Cf. Peng ( 2002 , pp. 259ff), Peng et al. ( 2008 , pp. 921f), Peng et al. ( 2009 , pp. 69f).

Cf. Luo et al. ( 2011 , p. 195).

Cf. Zhu et al. ( 2012 , p. 1135).

Cf. Helpman ( 1993 , pp. 1247f), Soete ( 2007 , 274ff).

Cf. Hill ( 1995 , pp. 119ff).

Cf. Chavance ( 2008 , pp. 57ff), Powell ( 1991 , pp. 183ff).

Cf. Fan ( 1998 , p. 208).

Hofstede et al. ( 2010 , p. 24).

Cf. Holmes et al. ( 2013 , p. 533), North ( 1990 , p. 42), Peng et al. ( 2008 , p. 922), Richter et al. ( 2016 , p. 65), Scott ( 1995 , pp. 38ff).

Dwyer et al. ( 2005 , p. 19).

Cf. Beugelsdijk et al. ( 2017 , pp. 30f).

Cf. Flatten et al. ( 2015 , p. 521), House et al. ( 2002 , p. 3), Kirkman et al. ( 2017 , pp. 13f), Rohlfer and Zhang ( 2016 , p. 41), Tutar et al. ( 2014 , p. 345).

Hofstede ( 1980b , p. 43).

Cf. Matsumoto et al. ( 2008 , p. 926).

Richter et al. ( 2016 , p. 65).

Cf. Cooke and Rousseau ( 1988 , pp. 247ff).

Cf. Hofstede ( 1980a , 6f).

Cf. Schein ( 1996 , p. 9).

Cf. DiMaggio ( 1997 , pp. 267f), Holmes et al. ( 2013 , p. 534).

Cf. Fu et al. ( 2004 , pp. 288f), Tuomela ( 2003 , pp. 123ff).

Cf. Holmes et al. ( 2013 , p. 534).

Cf. Peng et al. ( 2008 , p. 922).

Cf. Peng and Heath ( 1996 , p. 505).

Cf. Elg et al. ( 2008 , pp. 674ff), Michailova and Worm ( 2003 , pp. 509ff).

Cf. Peng ( 2003 , p. 284).

Cf. Ayoun and Moreo ( 2008 , p. 65).

See Ansoff ( 1965 ), Mintzberg ( 1987b ), Porter ( 1980 ).

Cf. Hutzschenreuter and Kleindienst ( 2006 , p. 694).

Cf. Ayoun and Moreo ( 2008 , p. 67).

Cf. Calabretta et al. ( 2017 , pp. 366ff), Degravel ( 2015 , pp. 12ff), Eldar et al. ( 2016 , pp. 16ff).

Cf. Degravel ( 2015 , pp. 14f; 18f), Gilbert-Saad et al. ( 2018 , pp. 75ff).

See Hofstede ( 1980a ), House et al. ( 2002 ).

Cf. Gerhart ( 2008 , p. 260).

Cf. Kirkman et al. ( 2006 , p. 285).

Cf. Ayoun and Moreo ( 2008 , p. 66), Degravel ( 2015 , p. 15), Gannon et al. ( 2006 , p. 40), Geletkanycz ( 1997 , pp. 615ff), Lin et al. ( 2019 , p. 3115).

Hitt and Tyler ( 1991 , p. 332).

Cf. Pant and Lachman ( 1998 , p. 195).

Cf. Harzing ( 1997 , pp. 654ff), Hofstede ( 1993 , pp. 91ff), Holt ( 2011 , pp. 80f).

Cf. Leung et al. ( 2005 , p. 368).

Hofstede ( 1983 , p. 88).

Cf. Ayoun and Moreo ( 2008 , pp. 66f).

Cf. Maruyama ( 1985 , pp. 125ff).

Cf. Pisani et al. ( 2009 , p. 1135).

Cf. Degravel ( 2015 , pp. 13f, 20).

Cf. Ghoshal and Bartlett ( 1998 , pp. 110f).

Cf. Grinyer et al. ( 1986 , pp. 3ff), Miller and Cardinal ( 1994 , pp. 1651f).

Cf. Mauri and Michaels (pp. 214ff).

Cf. Armstrong ( 1982 , pp. 202f).

See Mauri and Michaels ( 1998 ), McGahan and Porter ( 1997 , 2003 ), Rumelt ( 1991 ).

Cf. Mauri and Michaels ( 1998 , pp. 213ff).

Cf. Yasai-Ardekani and Haug ( 1997 , 729ff).

Cf. Barney ( 1991 , pp. 105ff), Wernerfelt ( 1984 , pp. 172ff).

Cf. Godfrey and Hill ( 1995 , pp. 519ff).

Cf. Hart and Banbury ( 1994 , 256), Holt ( 2011 , 81f).

Cf. Holt ( 2011 , p. 81).

Cf. Fredrickson and Mitchell ( 1984 , pp. 401ff), Robinson Jr and Pearce ( 1983 , pp. 197ff).

Cf. Ali ( 2018 , p. 13).

Cf. Hutzschenreuter and Kleindienst ( 2006 , p. 693).

Hickson et al. ( 1974 , p. 64).

Cf. Wolf and Floyd ( 2017 , pp. 1760, 1763).

Cf. Ferrier ( 2001 , p. 872), Greckhamer et al. ( 2008 , p. 719), McCaskey ( 1974 , p. 288).

Cf. Eddleston et al. ( 2013 , p. 1187), Lester et al. ( 2003 , pp. 339ff), McCaskey ( 1974 , p. 287), Withane ( 1997 , pp. 689ff).

Cf. Anderson and Zeithaml ( 1984 , pp. 5ff).

Cf. Marginson ( 2002 , pp. 1019ff), Simons ( 1990 , p. 127).

Cf. Bloom and van Reenen ( 2007 , p. 1352).

Cf. Ferrier ( 2001 , p. 871), Fredrickson ( 1985 , p. 821), Lant et al. ( 1992 , pp. 585ff), Talaulicar et al. ( 2005 , p. 526).

Cf. Dutton ( 1993 , pp. 341ff).

Cf. Miller ( 1993 , pp. 116ff).

Cf. Papadakis et al. ( 1998 , 116ff).

Cf. Bloom and van Reenen (p. 1357).

Cf. Baum and Wally ( 2003 , pp. 1112f), Elenkov ( 1997 , pp. 294ff), Khatri and Ng ( 2000 , pp. 59ff).

Cf. Yasai-Ardekani and Haug ( 1997 , p. 732).

Cf. Bloom and van Reenen ( 2007 , pp. 1356f).

Cf. Mauri and Michaels ( 1998 , pp. 215ff), Rumelt ( 1991 , pp. 176ff).

Cf. Ghoshal and Bartlett ( 1990 , p. 604), Sageder and Feldbauer-Durstmüller ( 2019 , p. 876), Schuler et al. ( 1993 , p. 420), Vora et al. ( 2007 , p. 596).

Cf. Ghoshal and Bartlett ( 1998 , pp. 6ff), Harzing ( 2000 , pp. 102f), Lin and Hsieh ( 2010 , p. 53).

Cf. Ambos and Mueller-Stewens ( 2017 , p. 12), Gupta and Govindarajan ( 1991 , p. 768), Lin and Hsieh ( 2010 , p. 53), Sageder and Feldbauer-Durstmüller ( 2019 , p. 876).

Porter ( 1986 , p. 17).

Cf. Alfoldi et al. ( 2012 , p. 281), Birkinshaw et al. ( 1998 , p. 222), Hungenberg ( 2014 , pp. 15ff), Jarzabkowski and Kaplan ( 2015 , p. 544), Ketchen and Shook ( 1996 , p. 441), Kutschker and Schmid ( 2004 , pp. 483), Taggart ( 1996 , p. 542).

Cf. Ayoun and Moreo ( 2008 , p. 67), Bachmann et al. ( 2016 , p. 297), Hunger and Wheelen ( 2009 , pp. 7f), Wolf and Floyd ( 2017 , pp. 1765ff).

Cf. Goold et al. ( 1998 , pp. 308ff), Hungenberg ( 2014 , pp. 15f), Hunger and Wheelen ( 2009 , pp. 7f), Johnson et al. ( 2008 , pp. 303ff).

Cf. Hungenberg ( 2014 , pp. 15f), Hunger and Wheelen ( 2009 , pp. 7f).

Cf. Hunger and Wheelen ( 2009 , pp. 7f), Luo et al. ( 2011 , p. 190), Ondrack ( 1985 , pp. 1f).

Cf. Hungenberg ( 2014 , p. 17).

Cf. Jarzabkowski and Kaplan ( 2015 , p. 544).

Cf. Bartlett and Ghoshal ( 1991 , p. 9), Birkinshaw and Morrison ( 1995 , pp. 730f).

Cf. Kim and Mauborgne ( 1993 , p. 420), Palich and Gomez-Mejia ( 1999 , p. 597).

Cf. Gammelgaard et al. ( 2012 , p. 1158).

Cf. Gammelgaard et al. ( 2012 , pp. 1158ff), Kirkman et al. ( 2006 , pp. 306f), Michailova and Mustaffa ( 2012 , p. 383), Paterson and Brock ( 2002 , pp. 141f), Young and Tavares ( 2004 , pp. 218ff).

Cf. Ali and Shaw ( 1988 , p. 120), Rosenzweig and Singh ( 1991 , p. 342).

Spotify has established an agile organizational structure focusing on autonomy and alignment simultaneously (please refer to Kniberg and Ivarsson ( 2012 ) for further information).

Cf. Bartlett and Ghoshal ( 1987 , p. 14), Harzing ( 2000 , pp. 101f), Kutschker and Schmid ( 2004 , p. 299), Smite et al. ( 2019 , pp. 51f).

Cf. Kim and Mauborgne ( 1993 , p. 420), Palich and Gomez-Mejia ( 1999 , p. 597), Sageder and Feldbauer-Durstmüller ( 2019 , p. 884).

Cf. Narula ( 2014 , p. 4), Yeung et al. ( 2001 , p. 165).

Cf. Idenburg ( 1993 , p. 133).

Cf. Alfoldi et al. ( 2012 , p. 279), Ciabuschi et al. ( 2012 , p. 215), Herbert ( 1999 , p. 81f), Kim and Mauborgne ( 1993 , p. 420), Kutschker and Schmid ( 2004 , p. 292), Narula ( 2014 , p. 4), Veliyath and Shortell ( 1993 , pp. 366f).

Cf. Yeung et al. ( 2001 , p. 165).

Cf. Gupta and Govindarajan ( 1991 , p. 769).

Cf. Arenas and Ayuso ( 2016 , p. 220).

Cf. Herbert ( 1999 , p. 81), Kim and Mauborgne ( 1993 , p. 424), Meyer and Rowan ( 1977 , p. 344), Rabbiosi ( 2011 , p. 97), Smelser and Baltes ( 2001 , p. 10197).

Cf. Kutschker and Schmid ( 2004 , p. 292), Narula ( 2014 , p. 4), Yeung et al. ( 2001 , p. 165).

Cf. Hout et al. ( 1982 , p. 98).

Cf. Bartlett and Ghoshal ( 1987 , p. 7), Ghoshal and Bartlett ( 1998 , pp. 16ff; 79f), Harzing ( 2000 , p. 107f), Svensson ( 2001 , p. 9).

Cf. Trefry ( 2006 , pp. 563ff), Tutar et al. ( 2014 , p. 345).

Cf. Young and Tavares ( 2004 , p. 218).

Cf. Taggart and Hood ( 1999 , p. 228).

Cf. Herbert ( 1999 , pp. 81f).

Cf. Chow et al. ( 1999 , pp. 561f), Dimitratos et al. ( 2009 , p. 412).

Cf. Birkinshaw et al. ( 2000 , pp. 323).

As introduced in Sect. 2.2.2 .

Cf. Alfoldi et al. ( 2012 , p. 282), Chang and Taylor ( 1999 , pp. 544, 557), Liu et al. ( 2014 , p. 221), Nobel and Birkinshaw ( 1998 , p. 483).

Cf. Kim and Mauborgne ( 1993 , p. 424).

Cf. Ghoshal and Bartlett ( 1998 , p. 16), Kim and Mauborgne ( 1993 , p. 424), Lin and Hsieh ( 2010 , p. 53), Narula ( 2014 , p. 10).

Scott et al. ( 2010 , pp. 328ff), Wolf and Egelhoff ( 2010 , p. 144).

Cf. Birkinshaw and Morrison ( 1995 , pp. 737f), Hedlund ( 1986 , pp. 9ff).

Cf. Gammelgaard et al. ( 2012 , p. 1160), Gupta and Govindarajan ( 1991 , p. 770).

Cf. Hedlund ( 1986 , pp. 24f).

Cf. Persson ( 2006 , p. 548), Rabbiosi ( 2011 , p. 97), Scott et al. ( 2010 , pp. 329f), Taggart ( 1996 , p. 533).

Cf. Fang et al. ( 2013 , p. 30).

Cf. Hedlund ( 1986 , pp. 21;24).

Cf. Hedlund ( 1986 , p. 21), Macharzina ( 2009 , p. 47).

Cf. Yeniyurt ( 2003 , pp. 137f).

Cf. Birkinshaw et al. ( 2000 , p. 321).

Cf. Andersson and Pahlberg ( 1997 , p. 320).

Cf. Ghoshal and Nohria ( 1989 , pp. 324f).

Cf. Gammelgaard et al. ( 2012 , pp. 1160f), Schmid et al. ( 2014 , p. 215), Taggart ( 1999 , pp. 237f), Taggart and Hood ( 1999 , pp. 227f).

Cf. Gammelgaard et al. ( 2012 , pp. 1159ff), Madhok ( 2015 , p. 628), Rabbiosi ( 2011 , p. 97), Scott et al. ( 2010 , pp. 329ff), Taggart and Hood ( 1999 , p. 228), Williams and van Triest ( 2009 , p. 157).

Cf. Williams and van Triest ( 2009 , p. 158).

Cf. Kim and Mauborgne ( 1993 , p. 424), Taggart ( 1996 , p. 542), Young and Tavares ( 2004 , pp. 218ff).

Cf. Taggart ( 1999 , p. 247).

Cf. Taggart and Hood ( 1999 , p. 227).

Cf. Paterson and Brock ( 2002 , pp. 141f), Taggart and Hood ( 1999 , p. 227), Wolf and Floyd ( 2017 , p. 1768).

Cf. Williams and van Triest ( 2009 , p. 156).

Cf. Kawai and Strange ( 2014 , pp. 510ff).

Cf. Narula ( 2014 , p. 10).

Cf. Ghoshal and Bartlett ( 1998 , p. 287).

Cf. Feurer and Chaharbaghi ( 1995 , p. 19), Hodgkinson et al. ( 2006 , pp. 480f).

Cf. Palich and Gomez-Mejia ( 1999 , p. 598).

Cf. Scott et al. ( 2010 , pp. 329f).

Cf. Feurer and Chaharbaghi ( 1995 , p. 18).

Cf. Andersson and Pahlberg ( 1997 , p. 319), Birkinshaw et al. ( 1998 , p. 222), Ciabuschi et al. ( 2012 , p. 217), Paterson and Brock ( 2002 , p. 141).

Cf. Bartlett and Ghoshal ( 1986 , pp. 90ff), Kutschker and Schmid ( 2004 , p. 338).

Cf. Andersson and Pahlberg ( 1997 , p. 320), Ayoun and Moreo ( 2008 , p. 67), Ciabuschi et al. ( 2012 , p. 215), Hodgkinson et al. ( 2006 , p. 480), Veliyath and Shortell ( 1993 , p. 365).

Cf. Wolf and Floyd ( 2017 , p. 1768).

Cf. Armstrong ( 1982 , p. 201).

A mental model can be defined as an individual’s cognitive structure to interpret situations. The structure is consisting of different elements and relations (see Zahn and Foschiani ( 2006 , p. 85)).

Cf. Meyer and Rowan ( 1977 , p. 341), Whittington ( 2017 , p. 34), Zahn and Foschiani ( 2006 , pp. 84f).

Cf. Hedlund ( 1986 , p. 21), Scott et al. ( 2010 , pp. 329f).

Cf. Kutschker and Schmid ( 2004 , pp. 670ff; 780f), Viegas-Pires ( 2013 , p. 363).

Donthu and Yoo ( 1998 , p. 183).

Cf. Ambos and Mueller-Stewens ( 2017 , p. 14), Herbert ( 1999 , p. 82).

Cf. Peng ( 2002 , p. 256).

Cf. Barkema et al. ( 2015 , p. 462), Brouthers et al. ( 2000 , p. 864).

Cf. Chong and Park ( 2003 , p. 33).

Cf. Herbert ( 1999 , pp. 82ff), Paterson and Brock ( 2002 , pp. 155ff).

Cf. Chow et al. ( 1999 , p. 579).

Cf. Ambos and Mueller-Stewens ( 2017 , p. 14), Herbert ( 1999 , pp. 85ff), Whittington ( 2017 , p. 34).

Cf. Oesterle and Weikum ( 2019 , pp. 13f).

Cf. Meyer and Rowan ( 1977 , p. 355).

Cf. Brock et al. ( 2008 , pp. 1294f).

Cf. Ambos and Mueller-Stewens ( 2017 , p. 13), Herbert ( 1999 , p. 81), Whittington ( 2017 , p. 33).

Ahlvik and Björkman ( 2015 , p. 498).

Cf. Brock and Barry ( 2003 , p. 546).

Hedlund ( 1986 , p. 26).

Cf. Feurer and Chaharbaghi ( 1995 , p. 19), Hedlund ( 1986 , p. 29), Zahn and Foschiani ( 2001 , p. 417).

Cf. Williams and Lee ( 2011 , p. 261).

de Geus ( 1988 , p. 71).

Cf. Ali and Shaw ( 1988 , pp. 116ff), Gammelgaard et al. ( 2012 , p. 1161), Madhok ( 2015 , p. 628), Scott et al. ( 2010 , p. 329f), Taggart ( 1999 , p. 233ff), Wolf and Floyd ( 2017 , pp. 1768f).

Cf. Cattani et al. ( 2011 , pp. XVIff), Grabher ( 2004 , p. 1491), Turner and Müller ( 2003 , pp. 2ff).

Please refer to Sect. 2.4.1 .

Cf. Veliyath and Shortell ( 1993 , pp. 365f).

Williams and Lee ( 2011 , p. 255).

Cf. Bartlett and Ghoshal ( 1987 , p. 7), Kutschker and Schmid ( 2004 , p. 292).

Cf. Persson ( 2006 , p. 547), Rabbiosi and Santangelo ( 2013 , p. 160).

Fang et al. ( 2013 , p. 31).

Cf. Williams and Lee ( 2011 , p. 259).

Cf. Cohen and Levinthal ( 1990 , p. 128), Fang et al. ( 2013 , p. 30).

Cf. Williams and Lee ( 2011 , p. 260).

Cf. Narula ( 2014 , p. 11), Rabbiosi and Santangelo ( 2013 , p. 163).

Cf. Chandler ( 1962 , p. 383), Mauri and Michaels ( 1998 , pp. 211f).

Cf. Kim and Mauborgne ( 1993 , pp. 443f).

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Cf. Kim and Mauborgne ( 1993 , p. 422).

Cf. Rahim et al. ( 2000 , pp. 13f).

Kim and Mauborgne ( 1993 , p. 422).

Cf. Cropanzano and Mitchell ( 2005 , p. 874).

Cf. Cropanzano and Mitchell ( 2005 , pp. 875ff), Kim and Mauborgne ( 1993 , p. 423).

Cf. Kim and Mauborgne ( 1993 , pp. 424f).

Cf. Egelhoff ( 1991 , pp. 345ff).

Cf. Alfoldi et al. ( 2012 , p. 281).

Cf. Kim and Mauborgne ( 1993 , pp. 422f).

Cf. Lin and Hsieh ( 2010 , pp. 52, 54), Mirchandani and Lederer ( 2014 , p. 30).

Cf. Birkinshaw et al. ( 2000 , pp. 321f), Ghoshal and Bartlett ( 1990 , p. 604).

Liu et al. ( 2014 , p. 219).

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Cf. Martinez and Jarillo ( 1989 , p. 491).

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Cf. Persson ( 2006 , pp. 561f), Rabbiosi ( 2011 , p. 108).

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Schühly, A.M. (2022). What Is Strategic Management and Why Do We Need It: Theoretical Foundations of Strategic Management. In: Cultural Influences on the Process of Strategic Management. MIR Series in International Business. Springer, Cham. https://doi.org/10.1007/978-3-030-86660-0_2

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The Management of a Business Strategic Plan: A Systematic Literature Review

Profile image of JOHN CHOLA BWALYA

Journal of Economics, Finance And Management Studies

The viability of a company depends heavily on its ability to gain an edge not only in its competitors but also in the ever-changing business environment. In today's global economy, it is imperative that corporate leaders always make better decisions than their competitors and maintain a healthy economic position. This can only be achieved with insight, knowledge, skills, experience and leadership. All of this is built on the passage of time and effort. It also reveals and raises questions about the impact management and strategic thinkers have had on the profitability of successful businesses. Therefore, all this can be enshrined in the business strategic plan to create a clear road map for an institution for a specific period of time. After the development of the strategic business plan the next crucial stage is to manage it all the way up to the end of the specified period.

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    The Management of a Business Strategic Plan: A Systematic Literature Review. Nizah Mutambo, Austin Mwange, +4 authors. John Bwalya. Published in Journal of economics, finance… 29 June 2022. Business. The viability of a company depends heavily on its ability to gain an edge not only in its competitors but also in the ever-changing business ...

  10. Does Strategic Planning Improve Organizational Performance? A Meta

    Meta-regression analysis suggests that the positive impact of strategic planning on organizational performance is strongest when performance is measured as effectiveness and when strategic planning is measured as formal strategic planning. This impact holds across sectors (private and public) and countries (U.S. and non-U.S. contexts).

  11. Conceptual Framework for the Strategic Management: A Literature Review

    The articles reviewed are in the area of organizational structures, SM, management control, and strategic planning. This research covered the review of 5,400 publications from which 69 books, 7 conference articles, and 140 journals made major contributions. 2.1. Literature Review: Strategic Management

  12. The State of Public Strategic Management Research: A Selective

    Strategic planning and related strategic management elements have become ubiquitous practices at all levels of U.S. government and many nonprofit organizations over the past 25 years. The authors review strategic planning and management research over that time period using the premises of practice theory to guide the discussion. The review is ...

  13. The Influence of Systematic Strategic Planning and Strategic Business

    George, Walker, and Monster (2019), in a literature review of more than thirty related empirical studies, recommend that future studies need to explore the direct influence of strategic-planning formality on the effectiveness of an organization, which leads to sustainability .

  14. Strategic Planning and Design of Supply Chains: A Literature Review

    Generally, the design and management of a supply chain seek to obtain the best global performances so as to achieve the better performance of single link of the chain [].Managers who make decisions at different levels of the supply chain need to be supported by robust tools to evaluate the impact of alternative strategies on a firm's performance, prior to making them in the real environment.

  15. The Management of a Business Strategic Plan: A Systematic Literature Review

    JEFMS, Volume 5 Issue 06 June 2022 www.ijefm.co.in Page 1776 The Management of a Business Strategic Plan: A Systematic Literature Review The strategic business plan is an important document for every organisation aiming at remaining focused and profitable in its area of operation and it further acts as a guide for the period specified therein.

  16. What Is Strategic Management and Why Do We Need It ...

    Footnote 376 Hutzschenreuter and Kleindienst derived from their literature review that the explanation of organizational performance should not be reduced to one variable, like planning, but rather through an integrated framework that combines strategic, organizational, and external factors.

  17. (PDF) A Critical Review of Theoretical Aspects of Strategic Planning

    The dependence of the strategic planning and the performance of the firm is. also notable with all the goals in the strategic planning, leading to influence. the performance of the organisation ...

  18. (PDF) THE ROLE OF STRATEGIC PLANNING IN SMEs: LITERATURE REVIEW AND

    The literature analysis is based on a comprehensive review of articles dealing with planning/strategy in SMEs in the leading entrepreneurship journals, Entrepreneurship Theory and Practice, Journal of Business 2 Venturing, Journal of Small Business Management, and Small Business Economics1 as well as the leading Strategy journals, Strategic ...

  19. Strategic Planning and Organizational Performance: A Critical Appraisal

    The literature addressing the empirical relationships between strategic planning and hard measures of organizational performance is examined. Distinctions are drawn among formal strategic planning; strategic planning content; and research linking strategic planning, environment, and organizational performance.

  20. Theorizing the Nature and Process of Strategic Intent: A Literature

    Since its introduction over 30 years ago, management scholars have employed the strategic intent concept to assign a central role to management agency in their research of organizations. To improve our understanding of strategic intent we conduct a systematic review of the management literature, including papers from action philosophy, which address the related notions of intentionality and ...

  21. Strategic Planning Pitfalls in Society 5.0: A Systematic Literature Review

    The main results of stra tegic planning research revealed: (1) The relevance of. strategic planning in society 5.0, (2) the appliance of dynamic cap abilities creating a defensive business. model ...

  22. Exploring the Roles, Future Impacts, and Strategic Integration of

    The methodology entails conducting a Systematic Literature Review (SLR) of publications from 2022 onwards. The approach involves qualitative deductive coding methods, descriptive statistical analysis, and thematic analysis. ... as they hinder informed decision-making and strategic planning for advancing smart cities. Additionally, recent extant ...

  23. The Management of a Business Strategic Plan: A Systematic Literature Review

    Thus, this systematic review explored the various literature on strategic planning in education through the PRISMA framework. Studies included in this review are focused on the challenges, processes, and impact of strategic planning in educational institutions written in the English language and conducted between 2020 and 2022 from Google ...

  24. Strategic Planning in Education: A Systematic Review

    various literature on s trategic planning in education through th e PRISMA framework. Studies. included in this review are focused on the challenges, processes, and im pact of strategic planning ...