Designing and Explaining the Readiness Model of Strategy Execution in Food products holding

Document Type : Research Paper

Authors

1 Associate Prof., Faculty of Management, Payame Noor University

2 Postgraduate of M.S. Industrial engineering, Payame Noor University

3 Postgraduate of Ph.D. Business Management, Payame Noor University

Abstract

Introduction: As we enter the third millennium, we witness rapid changes in technology and an increase in the complexity of environmental complexities. Under such circumstances, strategic management is widely used by most businesses to overcome uncertainties and withstand the onslaught of competitors. Meanwhile, the realization of visions, missions, and values and the competitive strategies of firms has become the main concern. This is because strategy development alone will not guarantee the success of the company. Unless these strategies are implemented; they will have no effect on the success and survival of the organization. Thus, the implementation of the strategy is far more important than the quality of the strategy. However, the challenges of strategic management lie in the implementation phase of the strategy more than the formulation stage. Therefore, the strategy execution and use of formal processes in strategy implementation management are critical to facilitating strategy implementation and achieving outstanding performance. In this research, strategy execution emphasizes translating strategies into action, aligning strategies with contextual variables, and managing strategic transformations. However, the readiness for strategy execution is one of the major scientific and practical shortcomings in effective strategy execution. The purpose of this study is to design and explain the model of strategy execution readiness based on a comprehensive and operational approach that fits the ecosystem of Iranian organizations.
Methodology: This is an applied type of research in terms of purpose. Due to the knowledge enhancement resulting from explaining the concept of strategy execution readiness, this research also has a developmental nature. It is done through exploratory, descriptive, and hypothesis testing sequences. The research seeks to establish the dimensions and components of measuring the readiness of strategy execution using an inductive -deductive research approach in the form of a combined exploratory research strategy. Thus, in the qualitative stage of the model design, the method of qualitative content analysis is used. In the stage of model testing and fitting, the structural equation modeling and the method of partial least squares are applied with the Smart PLS software. Also, the data are collected, analyzed, and modeled by theoretical sampling and interviews with experts in the qualitative part of the research and by random sampling and distribution of questionnaires in the quantitative part of the research.
Results and Discussion: In this study, the theoretical foundations of the subject were reviewed, and the opinions of 21 experts in the field of holding were used. Also, based on qualitative content analysis and theoretical coding, a comprehensive and operational model was designed and explained. The results of the qualitative data analysis, which were validated by professors and academic experts, were presented in the four dimensions of leadership, human, organizational and strategic preparedness, along with 12 key components and 62 items. Also, the structural equation modeling method was used to evaluate the suitability of the proposed model of strategies readiness. The results of applying the methodology proposed in the present study demonstrate the acceptable fit and validity of the organization readiness model for strategy execution. Actually, the average value of redundancies related to endogenous factors in the model is equal to 0.39. Also, the significance level of T in all paths of the model is more than 1.96. In other words, in all paths, the obtained weights have a significant difference with zero, which indicates the correctness of the relationships among the dimensions. Thus, the research hypotheses are confirmed at a 95% confidence level. Finally, through the calculation of the GOF value, 0.63 was obtained. For GOF, this value indicates a strong overall fit of the model. Based on the data analysis algorithm, the strategic preparedness component as the most important component of the current preparedness and leadership was considered as the weakest preparedness condition in food products holdings.
Conclusion: In order to increase the readiness of strategy execution based on the Delphi method, the most important executive initiatives were prioritized to establish corporate governance, to improve scenario planning, strategic issues and risks in leadership readiness, to coordinate communication policies, to visualize the vision in human readiness, to design forums, succession and participation rewards in organizational readiness, to establish better future research systems, to set up a thinking framework, and to implementat business intelligence and operational budgeting for strategic readiness. Application of the results of this research can improve the organizational readiness for strategy execution and make it possible to implement effective strategies and, consequently, embody visions, missions and values.

Keywords

References

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Journal of Business Administration Researches
Volume 13, Issue 25
August 2021
Pages 187-208

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