Empirical Analysis of Strategic Management in Inter-Governmental Organization
Abstract
:1. Introduction
1.1. Context of Study
1.2. Extant Work
1.3. IGO Strategic Management Challenges
1.4. Motivation and Purpose
1.5. Structure of the Paper
2. Literature Review
3. Theoretical Background and Research Question
- Research Question 1 (RQ1):
- What are the factors that influence strategic management in IGOs?
- Research Question 2 (RQ2):
- What relationships exist between the strategic management factors.
- Research Question 3 (RQ3):
- What conceptual model can be derived from the resulting relationships.
- Research Question 4 (RQ4):
- Are there any strategic formulation mediation effects on the relationship between strategic intent and strategic change?
4. Methodology
4.1. Sample and Procedure
4.2. Questionnaire
5. Results and Analysis
5.1. Sample and Procedure
5.2. Exploratory Factor Analysis, EFA
5.3. Descriptive Statistics and Correlation Analysis of Final Model Items
5.4. Confirmatory Factor Analysis, CFA
5.5. Structural Equation Modeling, SEM
6. Discussion and Conclusions
6.1. Synthesis of Findings
6.2. Implications for Practitioners
- Upper management should mitigate institutional pressures by setting up boundaries between council functions and the Secretariat, agreeing on the form and function of interactions between the two. Based on our model results, we see that institutional pressures have significant negative effects on strategic intent and strategic formulation. These negative effects need to be reduced and turned around by finding ways in which institutional pressures can inspire the spirit of entrepreneurial creativity and innovation.
- Avoid enforcing any part of strategic plan and manage it through active participation and ‘buy-in’ of all stakeholders.
- Communicate and continue to educate all managers and employees about the strategic plan, intention and formulation, while at the same time continuing to seek ways to manage small incremental changes towards your strategic goals. Managers need to pay attention to synchronizing and harmonizing movement towards strategic goals and the rate at which change occurs. Successful adaptation to new environments is achieved in small increments and a level of tolerated disruption or accepted comfort. That increment of change is to be determined by managers in real time.
- Make change management a part of your organizational culture.
6.3. Limitations
6.4. Recommendation for Future Research
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Courtney, R. (2013) | IGO Secretariat | IGO Development | IGO JIU |
---|---|---|---|
| Vision statement setting; Creating objectives and using a strategy map; Strategic initiatives | Strategic framework; strategic programs | |
| Identifying strategic risks | Situation analysis | Strategic plan based on the consultations and strategic framework |
| |||
| Internal input gathering | Strategic planning preparation involves participants, organization and communication | |
| |||
| External input gathering | ||
| |||
| Managing a strategy | Determination of the costs and linking the strategic planning process to the budgeting process | |
| Definition of mandate, vision and mission; Strategic issues and strategic goals; | Internal work plans with objectives and time horizons | |
| Determining criteria to be used to define priority activities; Developing action plans | Internal work plans with objectives and time horizon simplementation; implementation adapted to mid-term reviews | |
| |||
| Strategic performance measures | Monitoring and evaluation indicators | Monitoring and mid-term reviews; evaluation, reporting and lessons learned |
|
Construct | Items | Item Code |
---|---|---|
Planning | We have definite and precise strategic objectives | SM1 |
We have precise procedures for achieving strategic objectives | SM7 | |
Our strategy is made explicit in the form of precise plans | SM13 | |
We make strategic decisions based on a systematic analysis of our business environment | SM19 | |
Incrementalism | To keep in line with our business environment, we make continual small-scale changes to strategy | SM2 |
Our strategies emerge gradually as we respond to the need to change | SM14 | |
Our strategy develops through a process of ongoing adjustment | SM20 | |
We keep the early commitment to a strategy tentative | SM8 | |
Cultural | Our organization’s history directs our search for solutions to strategic issues | SM3 |
There are beliefs and assumptions about the way to do things that are specific to this organization | SM9 | |
Our culture dictates the strategy we follow | SM15 | |
There is resistance to any strategic change which does not sit well with our culture | SM21 | |
Political | The information on which our strategy is developed often reflects the interest of certain groups | SM4 |
The decision to adopt a strategy is influenced by the power of the group sponsoring it | SM16 | |
Our strategies often have to be changed because certain groups block their implementation | SM22 | |
Our strategy is a compromise that accommodates the conflicting interests of powerful groups and individuals | SM10 | |
Command | The strategy we follow is directed by a vision of the future associated with the chief executive (or another senior figure) | SM5 |
Our chief executive tends to impose strategic decisions (rather than consulting the top management team) | SM23 | |
The chief executive determines our strategic direction | SM17 | |
Our strategy is closely associated with a particular individual | SM11 | |
Enforced Choice | Our business environment severely restricts our freedom of strategic choice | SM6 |
We are not able to influence our business environment; we can only buffer ourselves from it | SM12 | |
Barriers exist in our business environment, which significantly restricts the strategies we can follow | SM18 | |
Many of the strategic changes which have taken place forced on us by those outside this organization | SM24 |
Items | Factors | |||
---|---|---|---|---|
1 | 2 | 3 | 4 | |
SM22 | 0.746 | |||
SM6 | 0.740 | |||
SM24 | 0.720 | |||
SM23 | 0.695 | |||
SM11 | 0.671 | |||
SM21 | 0.625 | |||
SM12 | 0.558 | |||
SM1 | 0.875 | |||
SM2 | 0.597 | |||
SM8 | 0.595 | |||
SM3 | 0.557 | |||
SM13 | 0.799 | |||
SM7 | 0.761 | |||
SM19 | 0.725 | |||
SM20 | 0.982 | |||
SM14 | 0.600 |
Factor | Item | Survey Question |
---|---|---|
Institutional Pressures [IP] | IP1 (SM22) | Political: Our strategies often have to be changed because certain groups block their implementation |
IP2 (SM6) | Enforce choice: Our business environment severely restricts our freedom of strategic choice | |
IP3 (SM24) | Enforced choice: Many of the strategic changes which have taken place forced on us by those outside this organization | |
IP4 (SM23) | Command: Our chief executive tends to impose strategic decisions (rather than consulting the top management team) | |
IP5 (SM11) | Command: Our strategy is closely associated with a particular individual | |
IP6 (SM21) | Cultural: Our strategy is closely associated with a particular individual | |
IP7 (SM12) | Enforced choice: We are not able to influence our business environment; we can only buffer ourselves from it | |
Strategic Intent [SI] | SI1 (SM1) | Planning: We have definite and precise strategic objectives |
SI2 (SM2) | Incrementalism: To keep in line with our business environment, we make continual small-scale changes to strategy | |
SI3 (SM8) | Incrementalism: We keep the early commitment to a strategy tentative | |
SI4 (SM3) | Cultural: Our organization’s history directs our search for solutions to strategic issues | |
Strategic Formulation [SF] | SF1 (SM13) | Planning: Our strategy is made explicit in the form of precise plans |
SF2 (SM7) | Planning: We have precise procedures for achieving strategic objectives | |
SF3 (SM19) | Planning: We make strategic decisions based on a systematic analysis of our business environment | |
Strategic Change [SC] | C1 (SM20) | Incrementalism: Our strategy develops through a process of ongoing adjustment |
C2 (SM14) | Incrementalism: Our strategies emerge gradually as we respond to the need to change |
Mean | S.D. | Skewness | Kurtosis | |
---|---|---|---|---|
Institutional Pressures (IP): Ave. of Means: 3.44 | ||||
SM22 | 3.35 | 1.44 | 0.612 | 0.272 |
SM6 | 2.79 | 1.45 | 0.890 | 0.188 |
SM24 | 3.57 | 1.41 | 0.408 | −0.324 |
SM23 | 3.49 | 1.49 | 0.617 | −0.247 |
SM11 | 3.98 | 1.53 | 0.192 | −0.451 |
Strategic Intent (SI): Ave. of Means: 2.47 | ||||
SM1 | 2.19 | 1.20 | 1.713 | 3.661 |
SM2 | 2.64 | 1.30 | 1.066 | 0.728 |
SM3 | 2.56 | 1.22 | 0.944 | 1.257 |
Strategic Formulation (SF): Ave. of Means: 3.49 | ||||
SM13 | 3.55 | 1.66 | 0.330 | −0.903 |
SM7 | 3.37 | 1.60 | 0.632 | −0.581 |
SM19 | 3.55 | 1.64 | 0.437 | −0.785 |
Strategic Change (SC): Ave. of Means: 2.93 | ||||
SM20 | 2.94 | 1.21 | 0.890 | 0.826 |
SM14 | 2.91 | 1.15 | 1.014 | 1.432 |
SM22 | SM6 | SM24 | SM23 | SM11 | SM1 | SM2 | SM3 | SM13 | SM7 | SM19 | SM20 | SM14 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Institutional Pressure (IP) | Cronbach Alpha: 0.837 | ||||||||||||
SM22 | 1 | 0.554 ** | 0.532 ** | 0.494 ** | 0.510 ** | −0.320 ** | 0.004 | −0.337 ** | −0.262 ** | −0.249 ** | −0.242 * | −0.221 * | −0.144 |
SM6 | 0.554 ** | 1 | 0.514 ** | 0.494 ** | 0.400 ** | −0.085 | 0.113 | −0.049 | −0.161 | −0.208 * | −0.211 * | −0.178 | −0.079 |
SM24 | 0.532 ** | 0.514 ** | 1 | 0.646 ** | 0.456 ** | −0.003 | 0.135 | −0.035 | −0.255 ** | −0.236 * | −0.267 ** | −0.146 | 0.016 |
SM23 | 0.494 ** | 0.494 ** | 0.646 ** | 1 | 0.470 ** | −0.223 * | −0.033 | −0.090 | −0.305 ** | −0.312 ** | −0.267 ** | −0.249 ** | −0.088 |
SM11 | 0.510 ** | 0.400 ** | 0.456 ** | 0.470 ** | 1 | −0.370 ** | −0.159 | −0.135 | −0.217 * | −0.303 ** | −0.160 | −0.234 * | −0.097 |
Strategic Intent (SI) | Cronbach Alpha: 0.748 | ||||||||||||
SM1 | −0.320 ** | −0.085 | −0.003 | −0.223 * | −0.370 ** | 1 | 0.570 ** | 0.511 ** | 0.282 ** | 0.470 ** | 0.271 ** | 0.491 ** | 0.324 ** |
SM2 | 0.004 | 0.113 | 0.135 | −0.033 | −0.159 | 0.570 ** | 1 | 0.411 ** | 0.296 ** | 0.470 ** | 0.313 ** | 0.434 ** | 0.378 ** |
SM3 | −0.337 ** | −0.049 | −0.035 | −0.090 | −0.135 | 0.511 ** | 0.411 ** | 1 | 0.343 ** | 0.374 ** | 0.245 * | 0.346 ** | 0.391 ** |
Strategic Formulation (SF) | Cronbach Alpha: 0.878 | ||||||||||||
SM13 | −0.262 ** | −0.161 | −0.255 ** | −0.305 ** | −0.217 * | 0.282 ** | 0.296 ** | 0.343 ** | 1 | 0.730 ** | 0.663 ** | 0.463 ** | 0.404 ** |
SM7 | −0.249 ** | −0.208 * | −0.236 * | −0.312 ** | −0.303 ** | 0.470 ** | 0.470 ** | 0.374 ** | 0.730 ** | 1 | 0.722 ** | 0.564 ** | 0.442 ** |
SM19 | −0.242 * | −0.211 * | −0.267 ** | −0.267 ** | −0.160 | 0.271 ** | 0.313 ** | 0.245 * | 0.663 ** | 0.722 ** | 1 | 0.602 ** | 0.460 ** |
Strategic Change (SC) | Cronbach Alpha: 0.817 | ||||||||||||
SM20 | −0.221 * | −0.178 | −0.146 | −0.249 ** | −0.234 * | 0.491 ** | 0.434 ** | 0.346 ** | 0.463 ** | 0.564 ** | 0.602 ** | 1 | 0.691 ** |
SM14 | −0.144 | −0.079 | 0.016 | −0.088 | −0.097 | 0.324 ** | 0.378 ** | 0.391 ** | 0.404 ** | 0.442 ** | 0.460 ** | 0.691 ** | 1 |
Hypotheses (Arrow Indicates Direction of Relationship) | Estimates | S.E. | C.R. | p-Value | Results | |||
---|---|---|---|---|---|---|---|---|
H1 | SI | ← | IP | −0.112 | 0.082 | −1.365 | 0.172 | Unsupported |
H2 | SF | ← | IP | −0.426 | 0.101 | −4.224 | *** | Supported |
H3 | SF | ← | SI | 0.526 | 0.118 | 4.466 | *** | Supported |
H4 | C | ← | SI | 0.322 | 0.092 | 3.591 | *** | Supported |
H5 | C | ← | SF | 0.301 | 0.064 | 4.675 | *** | Supported |
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Wan, J.; Wang, L.; Saade, R.; Guan, H.; Liu, H. Empirical Analysis of Strategic Management in Inter-Governmental Organization. Adm. Sci. 2022, 12, 83. https://doi.org/10.3390/admsci12030083
Wan J, Wang L, Saade R, Guan H, Liu H. Empirical Analysis of Strategic Management in Inter-Governmental Organization. Administrative Sciences. 2022; 12(3):83. https://doi.org/10.3390/admsci12030083
Chicago/Turabian StyleWan, James, Ling Wang, Raafat Saade, Hong Guan, and Hao Liu. 2022. "Empirical Analysis of Strategic Management in Inter-Governmental Organization" Administrative Sciences 12, no. 3: 83. https://doi.org/10.3390/admsci12030083
APA StyleWan, J., Wang, L., Saade, R., Guan, H., & Liu, H. (2022). Empirical Analysis of Strategic Management in Inter-Governmental Organization. Administrative Sciences, 12(3), 83. https://doi.org/10.3390/admsci12030083