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Integrating Decentralized Strategy Making and Strategic Planning Processes in Dynamic Environments

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  • Torben Juul Andersen
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    Abstract

    Decentralized post-bureaucratic organizations are deemed to display superior performance in dynamic environments, but recent evidence indicates that centralized integrative cross-functional processes may be equally critical. Accordingly, this paper hypothesizes that organizational performance can be ascribed to the simultaneous emphasis on decentralized strategy making and strategic planning processes. This is investigated in a study of 185 manufacturing organizations operating in diverse industries spanning food processing and computer products. The study shows that both decentralized decision structure and planning activities are associated with higher performance in dynamic environments. These findings confirm that effective organizations engage in more complex strategy formation processes that complement the decentralized post-bureaucratic form with formal mechanisms of rational analyses and operational integration. The paper highlights a need to extend our understanding of the duality between decentralization and planning. Copyright Blackwell Publishing Ltd 2004.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Management Studies.

    Volume (Year): 41 (2004)
    Issue (Month): 8 (December)
    Pages: 1271-1299

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    Handle: RePEc:bla:jomstd:v:41:y:2004:i:8:p:1271-1299

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380

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    Cited by:
    1. Nordqvist, Mattias & Melin, Leif, 2010. "The promise of the strategy as practice perspective for family business strategy research," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 15-25, March.
    2. Lichtenthaler, Ulrich, 2010. "Organizing for external technology exploitation in diversified firms," Journal of Business Research, Elsevier, vol. 63(11), pages 1245-1253, November.
    3. Cunha, Joao Vieira da & Clegg, Stewart R. & Cunha, Miguel Pina e, 2008. "Structuring For Glocalization: The Minimal Network," FEUNL Working Paper Series wp536, Universidade Nova de Lisboa, Faculdade de Economia.
    4. Fasshauer, Ingrid, 2012. "Les interactions entre contrôle et stratégie : redéfinition du rôle des cadres intermédiaires et du levier interactif de contrôle," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/11150 edited by Berland, Nicolas.
    5. Irene Herremans & Robert Isaac & Theresa Kline & Jamal Nazari, 2011. "Intellectual Capital and Uncertainty of Knowledge: Control by Design of the Management System," Journal of Business Ethics, Springer, vol. 98(4), pages 627-640, February.

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