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Strategy Structure, Micro Foundations of Capability Configurations and Their Effects on Execution Gaps Under Volatility

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Strategy Structure, Micro Foundations of Capability Configurations and Their Effects on Execution Gaps Under Volatility STRATEGY AS CONFIGURATION: STRATEGY STRUCTURE, MICRO FOUNDATIONS OF CAPABILITY CONFIGURATIONS AND THEIR EFFECTS ON EXECUTION GAPS UNDER VOLATILITY by STANLEY IKENEDUM DIKE OMEIKE DM Nonprofit Management Fellow Submitted in partial fulfillment of the requirements for the Degree of Doctor of Philosophy. Weatherhead School of Management Designing Sustainable Systems CASE WESTERN RESERVE UNIVERSITY May, 2017 CASE WESTERN RESERVE UNIVERSITY SCHOOL OF GRADUATE STUDIES We hereby approve the thesis/dissertation of Stanley I.D. Omeike candidate for the Doctor of Philosophy degree*. (signed) Kalle Lyytinen (chair of the committee) Simon Peck Bernard Bailey Robin Gustafsson (date) February 17, 2017 *We also certify that written approval has been obtained for any proprietary material contained therein. ii © Copyright by Stanley I. D. Omeike, 2017 All Rights Reserved iii Dedication To my loving family – my wife, Vivian, for her incredible resilience, kindness, love and support over the past quarter of a century, especially and specifically, including these past four years of doctoral studies; my children, Stanley, Stephenie, Stephen, Seth and Seal who endured countless months of their father being away studying and endless travels as I completed this process; and also to my parents, Livinus and Cordelia Omeike who raised me to always strive to do my best. And to an awesome Boss, Edward Lamatek Adamu without whose support and rare magnanimity this journey could never have been completed. iv Table of Contents List of Tables ......................................................................................................................x List of Figures ................................................................................................................... xi Acknowledgements ......................................................................................................... xii Abstract ........................................................................................................................... xiv Motivation ...................................................................................................................... xvii CHAPTER 1: INTRODUCTION .....................................................................................1 Problem of Practice and Research Question ...............................................................1 Relevance of Study Topic ..............................................................................................3 Theory and Literature Review ......................................................................................4 View of Strategy Implementation in Literature ......................................................5 Framing of Strategy Implementation Factors and Constructs ............................6 Strategy and Orientations ........................................................................................19 Volatility as an Antecedent of Variations in Strategy ...........................................20 Composition of a Molar Strategy Structure ...........................................................22 Capability Configurations .......................................................................................24 Research Questions and Design ..................................................................................32 Research Questions...................................................................................................32 Overview of mixed methods design .........................................................................36 Summary and Results of Each Study .........................................................................38 Organization of Remainder of Dissertation ...............................................................45 CHAPTER 2: STRATEGY AS INTERACTION: IDENTIFYING LIVED EXPERIENCES OF C-SUITE CORPORATE EXECUTIVES WITH STARTEGY EXECUTION AT THE ORGANIZATIONAL LEVEL (Study #1.) ..........................46 Preface ...........................................................................................................................46 Introduction ....................................................................................................................46 Literature Review .........................................................................................................47 View of Strategy Implementation in Literature ....................................................48 Strategy Formulation and Implementation Constructs ........................................48 Research Question and Method ..................................................................................53 Sample........................................................................................................................54 v Data Collection ..........................................................................................................56 Data Analysis.............................................................................................................56 Findings ..........................................................................................................................58 Finding 1: The interactions between Organizational shifts and Environmental shifts create a dynamic that constantly shapes the execution gap. ......................59 Finding 2: The interactions between the strategy focusing and the gap reduction capabilities creates a dynamic that shapes organizations engagement with the environment as it seeks to reduce its execution gap. .............................................60 Finding 3: The interactions between the organization’s strategy configuration and its current execution capability create a dynamic that shapes its execution effectiveness. ..............................................................................................................62 Discussion ......................................................................................................................71 Limitations ................................................................................................................78 Future Research (See Study 2) ................................................................................79 CHAPTER 3: STRATEGY AS CONFIGURATION: HOW IS IMPLEMENTED STRATEGY STRUCTURED? - A QUANTITATIVE STUDY OF THE ANTECEDENT EFFECTS OF VOLATILITY ON STRATEGY STRUCTURE AND GAP REDUCTION (Study 2: Quant) ..................................................................80 Preface ...........................................................................................................................80 Introduction ....................................................................................................................80 Theoretical Framework ..................................................................................................81 Hypothesis development ................................................................................................82 Effect of Volatility on Strategy orientations and Execution Gap Reduction ......82 The effect of volatility on extent of engagement with strategy orientations........82 The effect of volatility on execution gap reduction effectiveness .........................83 The Effect of Core Leapfrogging Strategy on Execution Gap .............................85 Mediation Effects of Strategy orientations on Volatility. .....................................86 Moderation Effects of Volatility on the Strategy orientations .............................87 Non-financial performance as a predictor of strategy implementation effectiveness performance ........................................................................................88 Construct Operationalization......................................................................................89 Measures: Dependent Variable ...............................................................................90 Measures: Independent Variables ..........................................................................90 vi Control Variables .....................................................................................................92 Instrument Development .............................................................................................92 Pre-Testing ................................................................................................................92 Data Collection and Sample ........................................................................................94 Data Analysis ................................................................................................................98 Data Screening ..........................................................................................................98 Measurement Model Analysis .....................................................................................99 Exploratory Factor Analyses (EFA) .......................................................................99 Confirmatory Factor Analyses (CFA) ..................................................................104 Common Method Bias ............................................................................................105 Measurement Model Analysis in Smart Pls .........................................................107 The Structural Model.................................................................................................109 Findings .......................................................................................................................114
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