Strategic Management Renewal Research Paper

CHAPTER I

INTRODUCTION

Overview

In the past decade, many large organizations have felt strong pressure for dramatically change more than ever before. Most of industries there are powerful forces to change such as new competition, arrival of new technologies, organizational structure, customer base, product market strategy and globalization which necessitate exploration (Volberda, Baden- Fuller and van den Bosch, 2001). In order to respond, firms have adopted a wide variety of approaches including downsizing and rejuvenation. In trying to explain many change situations “Strategic renewal” is one of the several terms that have begun to replace the older phase “Strategic Change”, (Huff, Huff, and Tomas, 1992). Strategic renewal is the keys

To test the moderating effects of adaptation climate on the relationships between the antecedent variables (executive vision, change experience, market culture, technology complementarity and competitive intensity) and each dimension of strategic management renewal orientation.

Research Questions

The key research question of this research is how strategic management renewal orientation has an effect on firm performance. Also, the specific research questions are as follows:

1. How does each dimension of strategic management renewal have an influence on business excellence, operational productivity, organization achievement and organization competitive?

2. How does organizational competitive have an influence on firm performance?

3. How does strategic management renewal orientation effect on firm performance?

4. How do executive vision, change experience, market culture, technology complementarity and competitive intensity have an influence on each dimension of strategic management renewal orientation? and

5. How does adaptation climate moderate the relationships among executive vision, change experience, market culture, technology complementarity and competitive intensity, and each dimension of strategic management renewal

It is defined as the abilities of organization to refresh or replace of qualities of an organization that have the potential to substantially affect its long-term prospects. Strategic management renewal orientation effectiveness includes five dimensions: organizational change management capability, business adaptation enhancement orientation, competitive operation flexibility emphasis, environmental learning focus and dynamic management ability awareness. Internal control system effectiveness is hypothesized to be positively associated with business excellence, operational productivity, organizational achievement, organizational competitiveness and firmperformance. Within the relationships, business excellence is the dependent variable of the research. It is defined as outstanding practices in managing the organization and achieving results along the eight fundamental concepts of the European Foundation for Quality Management (EFQM) in 1988the (Mozilo, 2001). Operational productivity defines as abilities of organization that use to achieve the objective of organization include input and output of expenditure, equipment and personnel resourced. Organizational achievement refer to the outcome of business operation or as an obtained result which will enable firms to achieve the objectives set by linking to the missions, visions and strategies