david marion university of toledo the effect of strategic orientation on the structure of an...

David Marion University of Toledo

The Effect of Strategic The Effect of Strategic Orientation on the Structure of Orientation on the Structure of

an Organization and the an Organization and the

Resulting Innovation StrategyResulting Innovation Strategy Dissertation Phase: ready for pilotDissertation Phase: ready for pilot

Committee:Committee:

Dr. Jeen S. Lim (E-Business)Dr. Jeen S. Lim (E-Business)

Dr. Janet Hartley (BGSU, chair, Mgmt.)Dr. Janet Hartley (BGSU, chair, Mgmt.)

Dr. James Pope OMDr. James Pope OM

Dr. Thomas Sharkey (Intl. Business)Dr. Thomas Sharkey (Intl. Business)


InnovationInnovation

Innovation Management Strategy has Innovation Management Strategy has not been clearly defined in the literaturenot been clearly defined in the literature

Innovation has been stated as a way an Innovation has been stated as a way an organization can grow its market share, organization can grow its market share, revitalize an existing product and even revitalize an existing product and even create a competitive advantagecreate a competitive advantage

Innovation is typically studied in Innovation is typically studied in isolation to itself or in combination with isolation to itself or in combination with one other constructone other construct


Purpose for StudyPurpose for Study

Define innovation more clearlyDefine innovation more clearly Portfolio method for measurementPortfolio method for measurement Further development of three Further development of three

measuresmeasures Add more to organizational structure Add more to organizational structure

in innovation researchin innovation research Attempt to display the advantages of Attempt to display the advantages of

different configurationsdifferent configurations


Structure of StudyStructure of Study

This study will introduce the different This study will introduce the different functions of the organization that functions of the organization that affect the outcomes of an innovationaffect the outcomes of an innovation

The premise is that once the strategic The premise is that once the strategic orientation of the organization is orientation of the organization is decided, the functional orientations decided, the functional orientations will align to create innovations that will align to create innovations that support the strategic missionsupport the strategic mission


Overview of presentationOverview of presentation

Present the conceptual model Present the conceptual model Present the different aspects of the Present the different aspects of the

organization that contribute to product organization that contribute to product innovativenessinnovativeness

Present the theoretical basis for the Present the theoretical basis for the studystudy

Present the measures and hypotheses Present the measures and hypotheses examplesexamples

Close with research methods and Close with research methods and expected contributionsexpected contributions


Conceptual ModelConceptual Model

StrategicOrientation

MarketOrientation

SupplyManagementOrientation

ManufacturingOrientation

Innovation Management

InnovationManagement

Strategy

ProductPortfolio

ControlVariables

FirmPerformance

Strategic Alignment


Strategic Orientation andStrategic Orientation andMarket OrientationMarket Orientation

Miles and Snow (1978) Defender, Miles and Snow (1978) Defender, Prospector, Analyzer, and Reactor; Prospector, Analyzer, and Reactor; Venkatraman (1989) Aggressiveness, Venkatraman (1989) Aggressiveness, Analysis, Defensiveness, Futurity, Analysis, Defensiveness, Futurity, Proactiveness, and RiskinessProactiveness, and Riskiness

Narver and Slater (1990) competitor Narver and Slater (1990) competitor orientation, customer orientation and orientation, customer orientation and interfunctional coordination; Kohli and interfunctional coordination; Kohli and Jaworski (1990) Jaworski (1990)


Supply Management Supply Management OrientationOrientation

and Manufacturing and Manufacturing OrientationOrientation Shin (et. al., 2000) introduced the orientation as Shin (et. al., 2000) introduced the orientation as

a focus on long-term supplier development, has a focus on long-term supplier development, has not been included in organizational structure.not been included in organizational structure.

Mavondo (1999) used the Defender orientation Mavondo (1999) used the Defender orientation as a representation of manufacturing orientationas a representation of manufacturing orientation

Hausman (et. al., 2000) stated that it should be Hausman (et. al., 2000) stated that it should be used as leverage for competitive strategyused as leverage for competitive strategy

Boyer (1998) introduced competitive priority Boyer (1998) introduced competitive priority constructs as representative of manufacturing constructs as representative of manufacturing strategy, they are cost, quality, delivery, and strategy, they are cost, quality, delivery, and flexibilityflexibility


Innovation Management Innovation Management StrategyStrategy

Griffin and Page (1996) present a Griffin and Page (1996) present a study of six different innovation study of six different innovation strategies in unison with Miles and strategies in unison with Miles and Snow’s (1978) strategic orientationsSnow’s (1978) strategic orientations

Ettlie and Subramaniam (2004) use Ettlie and Subramaniam (2004) use eight case studies with four types of eight case studies with four types of innovation strategies driven by innovation strategies driven by market pull, technology push, market pull, technology push, competition, or any combinationcompetition, or any combination


Product PortfolioProduct Portfolio

Portfolio management for product Portfolio management for product innovation has surfaced as one of innovation has surfaced as one of the most important senior the most important senior management functions (Cooper and management functions (Cooper and Kleinschmidt, 1996; Cooper et al, Kleinschmidt, 1996; Cooper et al, 2001) 2001)

The studies concerning product The studies concerning product portfolios have been mixed at bestportfolios have been mixed at best


Theoretical FoundationTheoretical Foundation

The antecedents and consequences The antecedents and consequences of innovation such as strategy, of innovation such as strategy, structure, alignment and financial structure, alignment and financial outcomesoutcomes

The foundation for this study will be The foundation for this study will be based on three accepted theories, based on three accepted theories, Contingency Theory, Core Contingency Theory, Core Competencies and Resource-Based Competencies and Resource-Based ViewView


Contingency TheoryContingency Theory

This theory is based on the match or coalignment This theory is based on the match or coalignment of an organization that occurs with its of an organization that occurs with its environment on at least two levels. The first level, environment on at least two levels. The first level, consisting of the structural features such as each consisting of the structural features such as each subunit, should be suited to the specific subunit, should be suited to the specific environment in which it exists. environment in which it exists.

The second level, is the differentiation and mode The second level, is the differentiation and mode of integrationof integration

Each business unit will perform a distinct Each business unit will perform a distinct function, yet be integrated into the greater whole function, yet be integrated into the greater whole of the organizationof the organization


Core CompetenciesCore Competencies

Through developing routines and dealing Through developing routines and dealing with the changing contingencies, the with the changing contingencies, the organization will develop effective skill organization will develop effective skill sets and become more proficient with sets and become more proficient with different technologies. different technologies.

Core competencies are defined as the Core competencies are defined as the collective learning in the organization, collective learning in the organization, especially how to coordinate diverse especially how to coordinate diverse production skills and integrate multiple production skills and integrate multiple streams of technologies streams of technologies


Resource-Based View Resource-Based View TheoryTheory

The RBV theory develops from two The RBV theory develops from two main assumptions, that there is main assumptions, that there is heterogeneity of organizations, and heterogeneity of organizations, and that resources are immobilethat resources are immobile

The individualism of an organization The individualism of an organization is determined by the choices madeis determined by the choices made

The resources immobility is The resources immobility is represented by the organizations represented by the organizations choices and access to resources choices and access to resources


Research QuestionsResearch Questions Research Question 1:Research Question 1: Will the choice of a specific Will the choice of a specific

strategic orientation define a certain level of (a) strategic orientation define a certain level of (a) market orientation, (b) supply management market orientation, (b) supply management orientation, and (c) manufacturing orientation?orientation, and (c) manufacturing orientation?

Research Question 2:Research Question 2: Will the drivers of the Will the drivers of the innovation management strategy clearly define innovation management strategy clearly define the organization’s degree of product the organization’s degree of product innovativeness?innovativeness?

Research Question 3:Research Question 3: What organizational What organizational structure combinations will perform the best? structure combinations will perform the best?


Strategic Orientation andStrategic Orientation andMarket Orientation Market Orientation

Measures Measures Strategic orientation will use the Strategic orientation will use the

measures from Sabherwal and Chan’s measures from Sabherwal and Chan’s (2001) study concerning strategies in (2001) study concerning strategies in information systemsinformation systems

Narver (et. al., 2004) introduces Narver (et. al., 2004) introduces proactive and responsive market proactive and responsive market orientation in conjunction with new orientation in conjunction with new product developmentproduct development

Hypothesis 1a:Hypothesis 1a: Strategic orientation will Strategic orientation will have a positive effect on the level of have a positive effect on the level of market orientation.market orientation.


Supply Management Supply Management OrientationOrientation

and Manufacturing and Manufacturing OrientationOrientation Shin (et. al., 2000) measures the Shin (et. al., 2000) measures the

management, buyer and supplier management, buyer and supplier relationshipsrelationships

Hypothesis 1b:Hypothesis 1b: Strategic orientation will Strategic orientation will have a positive effect on the level of supply have a positive effect on the level of supply management orientation. management orientation.

manufacturing orientation will use Boyer’s manufacturing orientation will use Boyer’s (1998, 1999, 2000) measures from (1998, 1999, 2000) measures from competitive prioritiescompetitive priorities

Hypothesis 1c:Hypothesis 1c: Strategic orientation will Strategic orientation will have a positive effect on the level of have a positive effect on the level of manufacturing orientation. manufacturing orientation.


Innovation Management Innovation Management Strategy Strategy

and the Product Portfolioand the Product Portfolio The innovation management strategy is The innovation management strategy is

expected to be directed by the drivers and past expected to be directed by the drivers and past experience of the organization experience of the organization

The measurement of the innovation The measurement of the innovation management strategy will consist of the management strategy will consist of the drivers that determine the innovation strategy drivers that determine the innovation strategy and the management of other pertinent and the management of other pertinent knowledge concerning innovationsknowledge concerning innovations

The product portfolio will be measured The product portfolio will be measured according to the amount of each of the five according to the amount of each of the five types of product innovation developedtypes of product innovation developed

A respondent will be given 100 points to A respondent will be given 100 points to allocate between each type of product allocate between each type of product innovationinnovation


Strategic AlignmentStrategic Alignment

Strategic alignment will be the Strategic alignment will be the indirect result of the different indirect result of the different orientation’s alignment with the orientation’s alignment with the strategy of the organizationstrategy of the organization

Hypothesis 7a:Hypothesis 7a: Strategic alignment Strategic alignment will have a positive affect on the will have a positive affect on the innovation management.innovation management.

Hypothesis 7b:Hypothesis 7b: Strategic alignment Strategic alignment will have a positive affect on the firm will have a positive affect on the firm performance. performance.


Control VariablesControl Variables

Organizational size, gross sales, Organizational size, gross sales, employees, age and industryemployees, age and industry

Technology turbulence and market Technology turbulence and market turbulence will be used from Narver turbulence will be used from Narver (et. al. 2004) (et. al. 2004)

Hypothesis 10Hypothesis 10:: An organization that is An organization that is affected by higher technological affected by higher technological turbulence will be higher in market turbulence will be higher in market orientation and lower in manufacturing orientation and lower in manufacturing and supply management orientation.and supply management orientation.


Research MethodResearch Method Manufacturing Orientation, Innovation Manufacturing Orientation, Innovation

Management Strategy and Strategic AlignmentManagement Strategy and Strategic Alignment Respondents will be project/program managers Respondents will be project/program managers

responsible for all facets of NPD in various responsible for all facets of NPD in various industries industries

Pilot study will be conducted using local Pilot study will be conducted using local organizationsorganizations

After clarification from the small sample, move to After clarification from the small sample, move to large sample survey; employ both mail and emaillarge sample survey; employ both mail and email

Final analysis will be conducted using both SPSS Final analysis will be conducted using both SPSS and LISRELand LISREL


Expected ContributionsExpected Contributions Insight into the strategy, structure Insight into the strategy, structure

and resulting innovations created and resulting innovations created within organizations. within organizations.

Development of an Innovation Development of an Innovation Management Strategy measure Management Strategy measure

Adoption of a Manufacturing Adoption of a Manufacturing Orientation measureOrientation measure

Development of a stronger Supply Development of a stronger Supply Management Orientation measure Management Orientation measure

Better understanding of economic Better understanding of economic implications for an organizationimplications for an organization


Thank You!Thank You!

Dissertation Proposal Dissertation Proposal DefenseDefense

david marion university of toledo the effect of strategic orientation on the structure of an...

Documents

product innovation

defender orientation

customer orientation

competitor orientation

studydefine innovation

innovation researchattempt

types of innovation

different functions