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Integrating Decentralized Strategy Making and Strategic Planning Processes in Dynamic Environments


  • Torben Juul Andersen


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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  • Torben Juul Andersen, 2004. "Integrating Decentralized Strategy Making and Strategic Planning Processes in Dynamic Environments," Journal of Management Studies, Wiley Blackwell, vol. 41(8), pages 1271-1299, December.
  • Handle: RePEc:bla:jomstd:v:41:y:2004:i:8:p:1271-1299

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    Cited by:

    1. Lichtenthaler, Ulrich, 2010. "Organizing for external technology exploitation in diversified firms," Journal of Business Research, Elsevier, vol. 63(11), pages 1245-1253, November.
    2. repec:spr:manrev:v:67:y:2017:i:4:d:10.1007_s11301-017-0132-4 is not listed on IDEAS
    3. Martin Guggenberger & Anna Rohlfing-Bastian, 2016. "Delegation of strategic decision-making authority to middle managers," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(2), pages 155-179, May.
    4. Karl-Heinz Leitner, 2016. "Emerging and deliberate product innovation strategies in SMEs: results from a longitudinal study," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 20(1/2), pages 80-98.
    5. 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.
    6. repec:jfr:jms111:v:8:y:2017:i:1:p:37-54 is not listed on IDEAS
    7. David Tegarden & Linda Tegarden & Wanda Smith & Steve Sheetz, 2016. "De-Fusing Organizational Power Using Anonymity and Cognitive Factions in a Participative Strategic Planning Setting," Group Decision and Negotiation, Springer, vol. 25(1), pages 1-29, January.
    8. Sirén, Charlotta & Kohtamäki, Marko, 2016. "Stretching strategic learning to the limit: The interaction between strategic planning and learning," Journal of Business Research, Elsevier, vol. 69(2), pages 653-663.
    9. 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.
    10. Thomas Schaefer & Thomas Guenther, 2016. "Exploring strategic planning outcomes: the influential role of top versus middle management participation," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(2), pages 205-249, May.
    11. 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, March.
    12. repec:rom:mancon:v:11:y:2017:i:1:p:617-632 is not listed on IDEAS
    13. Kawai, Norifumi & Strange, Roger, 2014. "Subsidiary autonomy and performance in Japanese multinationals in Europe," International Business Review, Elsevier, vol. 23(3), pages 504-515.
    14. repec:eco:journ3:2017-03-06 is not listed on IDEAS
    15. 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.
    16. Paula Jarzabkowski & Julia Balogun, 2009. "The Practice and Process of Delivering Integration through Strategic Planning," Journal of Management Studies, Wiley Blackwell, vol. 46(8), pages 1255-1288, December.

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