Improving Capabilities and Strategic Fit in Governmental Agencies
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Improving Capabilities and Strategic Fit in Governmental Agencies The Case of Abu Dhabi Government Infrastructure Sector Abdulla Alshebli A thesis submitted in partial fulfillment of the requirements of the University of Wolverhampton for the degree of Doctor of Philosophy March 2016 This work or any part therefor has not previously been submitted in any form to the University or to any other body whether for the purpose of assessment, publication or for any other purpose. Save for any express acknowledgments, reference and/or bibliographies cited in the work, I confirm that the intellectual content of the work is the result of my own efforts and no other person. The right of Abdulla Alshebli to be identified as the author of this work is asserted in accordance with ss.77 and 78 Copyright, Designs, and Patent Act 1988. At this date copyright is owned by the author. Signature ……………………………………… Date……………………………………………. Dedication It is with my deepest gratitude and warmest affection that I dedicate this humble work to the memory of my late father, and to my mother for making me who I am. I would also like to extend this dedication to my brothers, sisters, wife and three daughters, the unforgotten ones who have been with me along this journey. II Abstract The notion of Strategic Fit has been and remains to be one of the most important arguements in the fields of business strategy and strategic management. This research study examines the key concept of ‘strategic fit’ and its associated theories and seeks to investigate the causes that have created ‘strategic drift’ in Abu Dhabi’s governmental agencies in the infrastructure sector with the aim of improving their performance. However, for organisations, public or private, it still remains to be the most important notion and one that cannot be ignored because it is about the success of the organisation in its external environment where all competitive activity takes place. Thus, there are many underlying factors such as organisational culture, structure and organisational history that impact, or influence, the level of fit that organisations achieve. Therefore it is imperative that research is further undertaken on a deeper and wider level to fully understand the concept and importance of strategic fit and how it can be achieved. Hence, a research study in this area, especially in developing cities such as Abu Dhabi, is well justified and needed. The lack of strategic fit that has been witnessed in the Abu Dhabi’s infrastructure sector over the past few years continues to be, and it is a clear indication of a developing mismatch between the government and its policies and the agencies that implement them. However, this is clearly a major issue for the government going forward, if polices are developed with no clear understanding of the available resources and capabilities. Improving Capabilities and Strategic Fit in Governmental Agencies III Abdulla Alshebli, 2016 Similarly, the study also seeks to determine why a strategic fit has not been achievable by the Abu Dhabi government. Though the government has developed policies to better serve its people, it continuously faces issues of policies not being implemented, or being implemented too late and targets not been met according to the original brief. It has been identified that there are numerous deficiencies between the various government agencies in the infrastructure sector in terms of keeping pace with governmental policies - consequently, resulting in strategic gaps with an increasing possibility of a possible strategic drift, if these issues are not addressed effectively and in a timely manner. The study further wishes to explore if strategic gaps have occurred as a result of inherent cultural, historical, political and/or structural aspects of the Abu Dhabi government and its numerous agencies – simply because these issues can be seen as preventative to change and progress which, in turn, can lead to strategic gaps and strategic drift in the long term. The research paradigm selected for this research study is that of the pragmatist approach and subsequently the key methodology employed throughout this research is that of the mixed methods. That mixed methods research is an intellectual and practical synthesis based on qualitative and quantitative research. Also, This research provides a summary of the important findings, proved hypotheses, achieved aim and objectives, and significant contribution to the knowledge of strategic management through the development of the “Community Innovation Scheme”, the “3-Spectrums of Change”, the “4Ms Change Model”; and the resulting framework model; the “Government Strategy Model”. Improving Capabilities and Strategic Fit in Governmental Agencies IV Abdulla Alshebli, 2016 Acknowledgement I would like to extend my deepest appreciation and thanks to the many people who helped to bring this research project to fruition. I cannot express enough of my profound gratitude and deep regards to H.H. Sheikh Mansour bin Zayed Al Nahyan. This research project would not have seen the light of the day without his inspiration and motivation. I would like to thank the Ministry of Presidential Affairs of the United Arab Emirates for providing me with the financial support and valuable guidance throughout my entire program of study. I owe a deep sense of gratitude to my guide Professor Saba Mushatat for his exemplary guidance, monitoring and constant encouragement throughout the course of this thesis. The blessing, help and guidance given by him time to time shall carry me a long way in the journey of life. As I also would like to thank my other supervisory committee members, thanks for the continued support and encouragement: Professor Chike Oduoza, and Dr. Kadda Yahiaoui. I offer my sincere appreciation for the learning opportunities, the rich knowledge, and the valuable time. This research would not have been completed without the contribution of the many governmental officials and employees in Abu Dhabi, who enriched my knowledge and experience of the topic by answering the surveys, and participating in the interviews and focus groups. Thank you for being part of this journey that I do not have enough words to express my deep and sincere appreciation. Improving Capabilities and Strategic Fit in Governmental Agencies V Abdulla Alshebli, 2016 Finally, I must express my very deepest gratitude to my family, friends, and colleagues for providing me with their support and continuous encouragement throughout my years of study and through the process of researching and writing this thesis. This accomplishment would not have been possible without them. Thank you. Improving Capabilities and Strategic Fit in Governmental Agencies VI Abdulla Alshebli, 2016 Table of Contents Dedication ................................................................................... II Abstract ...................................................................................... III Acknowledgement ....................................................................... V Table of Contents .................................................................... VII List of Figures .............................................................................. X List of Tables ............................................................................. XI Abbreviations ........................................................................... XII Chapter 1: Introduction ...................................................... 1 1.1 Preface .................................................................................................................. 2 1.2 Outline of the notion of strategic fit ................................................................... 2 1.3 Objectives of the study ........................................................................................ 6 1.4 Aims, Objectives and Questions ....................................................................... 10 1.5 Key areas to be addressed ................................................................................ 11 1.6 Conceptual Framework .................................................................................... 12 1.7 Outline of Study ................................................................................................. 13 1.8 Summary and anticipated outcomes ............................................................... 14 Chapter 2: Strategic Fit ..................................................... 16 2.1 Introduction ....................................................................................................... 17 2.2 Punctuated Equilibrium ................................................................................... 18 2.3 Business Strategy ............................................................................................... 20 2.4 Strategic positioning .......................................................................................... 25 2.5 Strategic management ....................................................................................... 27 2.6 Strategic Fit ........................................................................................................ 30 2.7 Strategic Capabilities ........................................................................................ 34 2.8 Strategic orientation .......................................................................................... 45 2.9 Strategic change................................................................................................