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Perceptions of Strategic Priorities, Consensus and Firm Performance

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  • Cliff Bowman
  • Véronique Ambrosini

Abstract

This paper reports the results of a study into strategy content, consensus, and firm performance. It is argued that the content of consensus, i.e. what the agreement is about, is of importance, and that strategic priorities concerned with the extant strategy are constructs that are strategically relevant to the exploration of consensus‐‐performance links. Whereas previous studies have used a statistical measure of consensus (summing standard deviations), in this study the managers' perceptions of strategic priorities have been plotted on two‐dimensional graphs. We argue that in contrast to the use of means and standard deviations, by plotting the patterns of perceptions produced by a management group, more information is retained for subsequent interpretation and hence a richer picture of the extent and nature of shared perceptions within a management group can be developed. Using this approach, data from 32 strategic business units were analysed, revealing patterns of consensus and performance. The paper discusses the implications of these patterns, and suggests some avenues for further research.

Suggested Citation

  • Cliff Bowman & Véronique Ambrosini, 1997. "Perceptions of Strategic Priorities, Consensus and Firm Performance," Journal of Management Studies, Wiley Blackwell, vol. 34(2), pages 241-258, March.
    • Handle: RePEc:bla:jomstd:v:34:y:1997:i:2:p:241-258
    DOI: 10.1111/1467-6486.00050
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    Cited by:

    1. Tarakci, M. & Ates, N.Y. & Porck, J.P. & van Knippenberg, D.L. & Groenen, P.J.F. & de Haas, M., 2011. "Testing and Visualizing Strategic Consensus Within and Between Teams," ERIM Report Series Research in Management ERS-2011-015-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    2. Brenes, Esteban R. & Montoya, Daniel & Ciravegna, Luciano, 2014. "Differentiation strategies in emerging markets: The case of Latin American agribusinesses," Journal of Business Research, Elsevier, vol. 67(5), pages 847-855.
    3. Rhys Andrews & Malcolm J. Beynon, 2017. "Managerial Networking and Stakeholder Support in Public Service Organizations," Public Organization Review, Springer, vol. 17(2), pages 237-254, June.
    4. Rapert, Molly Inhofe & Velliquette, Anne & Garretson, Judith A., 2002. "The strategic implementation process: evoking strategic consensus through communication," Journal of Business Research, Elsevier, vol. 55(4), pages 301-310, April.
    5. Kellermanns, Franz W. & Walter, Jorge & Floyd, Steven W. & Lechner, Christoph & Shaw, John C., 2011. "To agree or not to agree? A meta-analytical review of strategic consensus and organizational performance," Journal of Business Research, Elsevier, vol. 64(2), pages 126-133, February.
    6. Cees B. M. Van Riel & Guido Berens & Majorie Dijkstra, 2009. "Stimulating Strategically Aligned Behaviour Among Employees," Journal of Management Studies, Wiley Blackwell, vol. 46(7), pages 1197-1226, November.
    7. Rhys Andrews & Malcolm J. Beynon & Elif Genc, 2017. "Strategy Implementation Style and Public Service Effectiveness, Efficiency, and Equity," Administrative Sciences, MDPI, vol. 7(1), pages 1-19, February.
    8. Brenes, Esteban R. & Ciravegna, Luciano & Pichardo, Caleb A., 2016. "Examining the strategy-performance link of Latin American businesses – a configurational approach," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(3), December.
    9. White, George O. & Boddewyn, Jean J. & Galang, Roberto Martin N., 2015. "Legal system contingencies as determinants of political tie intensity by wholly owned foreign subsidiaries: Insights from the Philippines," Journal of World Business, Elsevier, vol. 50(2), pages 342-356.
    10. Acquaah, Moses & Yasai-Ardekani, Masoud, 2008. "Does the implementation of a combination competitive strategy yield incremental performance benefits? A new perspective from a transition economy in Sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 61(4), pages 346-354, April.
    11. Nils Plambeck & Klaus Weber, 2009. "CEO Ambivalence and Responses to Strategic Issues," Organization Science, INFORMS, vol. 20(6), pages 993-1010, December.
    12. Rossi, Cesare & Cricelli, Livio & Grimaldi, Michele & Greco, Marco, 2016. "The strategic assessment of intellectual capital assets: An application within Terradue Srl," Journal of Business Research, Elsevier, vol. 69(5), pages 1598-1603.
    13. van Riel, C.B.M. & Berens, G.A.J.M. & Dijkstra, M., 2007. "Stimulating Strategically Aligned Behaviour Among Employees," ERIM Report Series Research in Management ERS-2007-029-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    14. Jin, Yao “Henry” & Fawcett, S.E. & Fawcett, A.D. & Swanson, David, 2019. "Collaborative capability and organizational performance: Assessing strategic choice and purity," International Journal of Production Economics, Elsevier, vol. 214(C), pages 139-150.
    15. Patrick Haack & Oliver Schilke & Lynne Zucker, 2021. "Legitimacy Revisited: Disentangling Propriety, Validity, and Consensus," Journal of Management Studies, Wiley Blackwell, vol. 58(3), pages 749-781, May.
    16. Ahmed Agyapong & Kofi Amanor & Kofi Poku, 2016. "Antecedents To The Implementation Of Hybrid Strategy In A Dynamic Business Environment — An Econometric Analysis Of Business Decisions In Ghana," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 1-24, December.
    17. van Riel, C.B.M. & Berens, G.A.J.M. & Dijkstra, M., 2008. "Stimulating Strategically Aligned Behaviour among Employees," ERIM Report Series Research in Management ERS-2008-045-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    18. Ramos-Garza, Claudia, 2009. "TMT strategic consensus in Mexican companies," Journal of Business Research, Elsevier, vol. 62(9), pages 854-860, September.
    19. Jorge Walter & Christoph Lechner & Franz W. Kellermanns, 2008. "Disentangling Alliance Management Processes: Decision Making, Politicality, and Alliance Performance," Journal of Management Studies, Wiley Blackwell, vol. 45(3), pages 530-560, May.
    20. Rodríguez Bolívar, Manuel Pedro & Alcaide Muñoz, Laura & Alcaide Muñoz, Cristina, 2023. "Identifying patterns in smart initiatives' planning in smart cities. An empirical analysis in Spanish smart cities," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    21. G. Page West III, 2007. "Collective Cognition: When Entrepreneurial Teams, Not Individuals, Make Decisions," Entrepreneurship Theory and Practice, , vol. 31(1), pages 77-102, January.

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