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Toward integrating strategic process and strategy content: Conceptual foundations and empirical results from commercial banking
Abstract
Until recently, researchers in strategic management have been advised to follow one of two approaches. Research addressing strategic processes has addressed internal organizational process differences, how these processes are affected by external conditions and internal policies, and the effects of planning processes on organizational performance. Strategy content research has generally sought to identify differences in firms' strategic orientations given an existing set of environmental conditions. A growing movement exists within the area to integrate the two approaches. This movement suggests strategy content is something more than a reflection of environmental content. Indeed, organizational processes determine what parts of the external environment will be heeded and how organizational resources will be allocated to strategic thrusts assuring the firm's attainment of goals and objectives. This study develops an underlying foundation integrating these two areas. To accomplish this purpose, conceptual and theoretical work from social and situational psychology is reviewed. An individual's planning behavior is compared to a representative model of the organizational planning process. From this, a comprehensive model integrating strategy content and strategic processes is developed. At the heart of this model lies the individual manager's perceptual-cognitive structure. Empirical results from commercial banking in two Midwestern states are presented providing support for the underlying conceptual model. The general conclusions suggest easily measured characteristics like bank size and type of ownership do not satisfactorily predict group membership. However, evidence is provided indicating strategic group membership results because members within a group interpret their environments differently than members in other groups. The key implication for researchers is that rote application of statistical methods may cloud rather than clarify understanding. Finally, areas of future research are identified using the underlying conceptual model. The goals of these efforts are to increase understanding of managers' strategic behavior and to provide additional confirming evidence for the model.
Subject Area
Marketing|Management
Recommended Citation
Parker, Thomas H, "Toward integrating strategic process and strategy content: Conceptual foundations and empirical results from commercial banking" (1987). ETD collection for University of Nebraska-Lincoln. AAI8806149.
https://digitalcommons.unl.edu/dissertations/AAI8806149