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Strategy implementation versus middle management self‐interest

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  • William D. Guth
  • Ian C. Macmillan

Abstract

This paper focuses on middle management motivation to implement strategy. It uses expectancy theory to predict that middle managers will intervene in organizational decision‐making processes leading to strategy implementation when their self‐interest is at stake. It develops the notion of ‘counter effort’, as an extension of expectancy theory. The paper reports an empirical study of middle management intervention theory. The data and analysis of this study provide strong, if indirect, evidence that middle managers who believe that their self‐interest is being compromised can not only redirect a strategy, delay its implementation or reduce the quality of its implementation, but can also even totally sabotage the strategy. Implications of the study for the management of strategy implementation are developed.

Suggested Citation

  • William D. Guth & Ian C. Macmillan, 1986. "Strategy implementation versus middle management self‐interest," Strategic Management Journal, Wiley Blackwell, vol. 7(4), pages 313-327, July.
    • Handle: RePEc:bla:stratm:v:7:y:1986:i:4:p:313-327
    DOI: 10.1002/smj.4250070403
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    Cited by:

    1. Lampaki, Antonia & Papadakis, Vassilis, 2018. "The impact of organisational politics and trust in the top management team on strategic decision implementation success: A middle-manager's perspective," European Management Journal, Elsevier, vol. 36(5), pages 627-637.
    2. Christian Grund & Tanja Hofmann, 2019. "The dispersion of bonus payments within and between firms," Journal of Business Economics, Springer, vol. 89(4), pages 417-445, June.
    3. Vasile DEAC & Cosmin DOBRIN & Mihai VRINCUT, 2018. "What Do Managers Want? Transparency And Obscurity In The Company’S Strategic Management," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(1), pages 462-471, November.
    4. Pakamas Srichoke & Georgios Georgakopoulos & Alexandros Sikalidis & Athina Sotiropoulou, 2021. "Corporate Governance, CEO Compensation and accounting conservatism," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 14(1), pages 80-95, June.
    5. Franz W. Kellermanns & Kimberly A. Eddleston, 2004. "Feuding Families: When Conflict Does a Family Firm Good," Entrepreneurship Theory and Practice, , vol. 28(3), pages 209-228, May.
    6. Steven W. Floyd & Bill Wooldridge, 1999. "Knowledge Creation and Social Networks in Corporate Entrepreneurship: The Renewal of Organizational Capability," Entrepreneurship Theory and Practice, , vol. 23(3), pages 123-144, April.
    7. Noble, Charles H., 1999. "The Eclectic Roots of Strategy Implementation Research," Journal of Business Research, Elsevier, vol. 45(2), pages 119-134, June.
    8. Nerkar, Atul A. & McGrath, Rita Gunther & MacMillan, Ian C., 1996. "Three facets of satisfaction and their influence on the performance of innovation teams," Journal of Business Venturing, Elsevier, vol. 11(3), pages 167-188, May.
    9. Carl Deschamps, 2019. "Stages of management control in a large public organization: from top to frontline managers," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(2), pages 153-184, July.
    10. Schuler, Benedikt Alexander & Orr, Kevin & Hughes, Jeffrey, 2023. "My colleagues (do not) think the same: Middle managers’ shared and separate realities in strategy implementation," Journal of Business Research, Elsevier, vol. 160(C).
    11. Michael D. Ensley & Allison W. Pearson, 2005. "An Exploratory Comparison of the Behavioral Dynamics of Top Management Teams in Family and Nonfamily New Ventures: Cohesion, Conflict, Potency, and Consensus," Entrepreneurship Theory and Practice, , vol. 29(3), pages 267-284, May.
    12. Zhaojun Yang & Jun Sun & Yali Zhang & Ying Wang, 2020. "Synergy between green supply chain management and green information systems on corporate sustainability: an informal alignment perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(2), pages 1165-1186, February.
    13. Mirza, Aimal, 2019. "Organizational Approach for the Design of a Comprehensive Compensation Package for Bank Employees in Afghanistan A Strategy for Acquiring and Retaining Talent," MPRA Paper 96531, University Library of Munich, Germany.
    14. Werner H. Hoffmann & Lukas Meusburger, 2018. "How CEO Values and TMT Diversity Jointly Influence the Corporate Strategy Making Process," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 70(2), pages 149-187, May.
    15. Tawse, Alex & Tabesh, Pooya, 2021. "Strategy implementation: A review and an introductory framework," European Management Journal, Elsevier, vol. 39(1), pages 22-33.
    16. Rasim Serdar Kurdoglu & Nüfer Yasin Ateş, 2022. "Arguing to Defeat: Eristic Argumentation and Irrationality in Resolving Moral Concerns," Journal of Business Ethics, Springer, vol. 175(3), pages 519-535, January.
    17. Katsuhiko Shimizu, 2008. "New Strategy Implementation and Learning: Importance of Consensus," Working Papers 0034, College of Business, University of Texas at San Antonio.
    18. Samir L. Vaz & Anneloes M. L. Raes & Mariano L. M. Heyden, 2022. "Realizing implementation through relational exchanges with top managers: the mediating role of middle managers’ divergent strategic behavior," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(1), pages 81-108, March.

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