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The effects of strategic alignment and competitive priorities on operational performance: The role of cultural context

Author

Listed:
  • Jie G. McCardle

    (Georgia Southern University)

  • Mary Beth Rousseau

    (Valdosta State University)

  • Dennis Krumwiede

    (Idaho State University)

Abstract

National culture could enhance or diminish the effectiveness of operational strategies and practices. In this study, we compare the effects of strategic alignment and competitive priorities on operational exploitation and exploration, across three cultural clusters. Our results show that the cultural characteristics of low power distance and high individualism enhance the efficacy of competitive priorities aimed at explorative performance outcomes, and cultures characterized by high power distance and low individualism strengthen the link between strategic alignment and exploitative performance. These findings suggest that different cultural characteristics can have significant impacts on the effectiveness of firm strategies at the local level. A practical implication of our study is that managers need to develop cultural literacy based on their facility locations.

Suggested Citation

  • Jie G. McCardle & Mary Beth Rousseau & Dennis Krumwiede, 2019. "The effects of strategic alignment and competitive priorities on operational performance: The role of cultural context," Operations Management Research, Springer, vol. 12(1), pages 4-18, June.
    • Handle: RePEc:spr:opmare:v:12:y:2019:i:1:d:10.1007_s12063-019-00139-7
    DOI: 10.1007/s12063-019-00139-7
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    References listed on IDEAS

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    Cited by:

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    3. Kwee Keong Choong & Sardar M. Islam, 2020. "A new approach to performance measurement using standards: a case of translating strategy to operations," Operations Management Research, Springer, vol. 13(3), pages 137-170, December.

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