The performance implications of fit among business strategy, marketing organization structure, and strategic behavior.
Olson, E. M., Slater, S. F., & Hult, G. T. M. (2005).Journal of marketing,69(3), 49-65.
그동안 박사 자격시험을 준비하면서 정리한 내용을 하나씩 풀고 있습니다. 주로 유명한 마케팅 논문들이 업로드될 예정입니다. Marketing Strategy 중에서도 Role of Marketing에 해당하는 두번째 논문 "핵심 요약"입니다.
Key — Business 전략을 보아라! 회사의 구조적 특성, 전략적 강조하는 부분과 마케팅 행동이 핏이 맞아야 성과가 난다.
Abstract
Fit-as-moderation model 회사가 성공하기 위해서는!
Adopting a contingency perspective, the authors present and test a fit-as-moderation model that posits that
overall firm performance is influenced by
how well the
organization's structural characteristics 조직의 구조적 특성
marketing organization's structural characteristics (i.e., formalization, centralization, and specialization) and
strategic behavioral emphases 전략적으로 강조하는 부분
strategic behavioral emphases (i.e., customer, competitor, innovation, and cost control)
complement alternative business strategies (i.e., prospector, analyzer, low-cost defender, and differentiated defender).
Responses from 228 senior marketing managers provide support for the model and demonstrate that each strategy type requires different combinations of marketing organization structures and strategic behaviors for success.
Takeaways
"Fit as Moderation" Perspective
Key
Integrated model of strategy implementation : Organizational Structure & Behavior Strategies → Marketing Activities ☆ → Implementing Business Strategies → Business Performance
Business strategy implementation → Firm Performance
Firm performance is determined, at least in part, by how effectively and efficiently the firm's business strategy is implemented (Galbraith and Kazanjian 1986; Walker and Ruekert 1987).
Implementing Business Strategies — ※ Marketing Activities
The process of implementing business strategies addresses how marketing activities are accomplished (Slater and Olson 2001; Walker and Ruekert 1987).
Marketing Activities ← How Well Organized & Behaviors
How well these activities are accomplished is influenced by
how they are organized (Mintzberg 1979; Vorhies and Morgan 2003; Weitz and Anderson 1981) and the
specific behaviors the organization undertakes regarding customer orientation, competitor analysis, innovation, and cost management (e.g., Chen 1996; Day and Nedungadi 1984; Deshpandé, Farley, and Webster 1993; Gatignon and Xuereb 1997; Porter 1980).
Variables and Definitions
Predictor variables — marketing organization structure and strategic behavior
Organizational Structure
Forms of structures are typically defined by three structural constructs
Formalization 공식적인 규칙의 영향력 ↑
Def
Formalization is the degree to which formal rules and procedures govern decisions and working relationships.
simple and/or repetitive work → efficient
Formal rules and procedures can lead to increased efficiency and lower administrative costs (Ruekert, Walker, and Roering 1985; Walker and Ruekert 1987), particularly in stable environments or those in which tasks are comparatively simple and/or repetitive (Olson, Walker, and Ruekert 1995).
etc
Burns and Stalker (1961) refer to firms with highly formal procedures as "mechanistic" and those with fewer formal procedures as "organic." Organic firms encourage horizontal and vertical communication and flexible roles. Benefits of the organic form include rapid awareness of and response to competitive and market change, more effective information sharing, and reduced lag time between decision and action (Miles and Snow 1992).
Centralization decision by top manager vs middle, lower managers
decision by top manager vs middle, lower managers
Centralization refers to whether decision authority is closely held by top managers or is delegated to middle-and lower-level managers.
Centralized = innovative idea , implementation tends to be straightforward after the decision
Specialization 일의 전문화된 정도
Specialization refers to the
degree to which tasks and activities are divided in the organization and
the degree to which workers have control in conducting those tasks.
This expertise enables the organization to respond rapidly to changes in its environment (Walker and Ruekert 1987) — But higher cost in hiring specialist.
Strategic behaviors to create superior performance through enhancing the execution of business strategy (Gatignon and Xuereb 1997; Slater and Narver 1995) 비즈니스 전략 실행을 강화시키는 4가지 전략적 행동들
Customer-Oriented Behaviors 고객 가치 창출과 유지가 최대 우선순위!
Firms with a strong customer orientation pursue competitive advantage by placing the highest priority on the creation and maintenance of customer value.
Competitor-Oriented Behaviors
beat the competition
A different perspective on competitive advantage is simply to beat the competition (Day 1990). This orientation places a priority on the in-depth assessment of a set of targeted competitors.
Innovation-Oriented Behaviors
radical or discontinuous innovations
Another perspective is that firms build and renew competitive advantage through radical or discontinuous innovations (Christensen and Bower 1996; Lynn, Morone, and Paulson 1996).
open and pursue ideas
An innovation orientation indicates that the firm not only is open to new ideas but also proactively pursues these ideas (Hurley and Hult 1998) in both its technical and administrative domains (Han, Kim, and Srivastava 1998).
Internal/Cost-Oriented Behaviors
Source of competitive: cost advantage that a firm derives from internal orientation
Reducing costs
These firms pursue operational excellence that they can translate into higher sales through lower prices or higher margins (Treacy and Wiersema 1993).
Exploitation (개발)
Exploitation enables the firm to realize improvements as it drives down the learning curve (Alberts 1989)
Criterion variable — firm performance
Moderator — business strategy a firm adopts
Definition of Business Strategy
How firms compete in an industry or market (Varadarajan and Clark 1994; Walker and Ruekert 1987).
Two dominant frameworks — Miles and Snow typology(1978) & Porter (1980) typology
Miles and Snow (1978) develop a comprehensive framework that addresses the alternative ways that organizations
define and approach their product-market domains (the entrepreneurial problem) and 제품과 시장 영역 정의
construct structures and processes (the administrative and technical problems) to achieve competitive advantage in those domains. 경쟁우위를 점하기 위한 구상
Prospectors 새로운 전략 탐색 — 테슬라
Prospectors continuously attempt to locate and exploit new product and market opportunities
H1: The highest-performing prospector firms have marketing organizations that are characterized by a high number of specialists who operate in a decentralized, informal organization and who place a greater emphasis on customer and innovation orientations.
Analyzers 기존 고객 유지 + 새로운 제품과 시장 공략
"analyzers" occupy an intermediate position by cautiously following prospectors into new product-market domains while protecting a stable set of products and customers
Defenders — Low cost defenders & Differentiated Defenders 지금 시장 점유율 유지 — 코카콜라
" defenders" attempt to seal off a portion of the total market to create a stable set of products and customers
Low-cost defenders 전반적으로 비용 낮춰서 quality있는 offerings 제공
Provide quality products or services at the lowest overall cost.
Differentiated defenders 기존 고객에게 차별화 전략 — KT 멤버십 가족결합
Provide premium service and/or high-quality products to select sets of customers who value and are willing to pay for them
Control Variables
Market Turbulence 고객의 선호가 훅훅 바뀌는 — 스마트폰, 나이가 먹음에 따라 소비재 vs 비건 food vs IT기업 vs 교육계
Technological Turbulence
Olson, E. M., Slater, S. F., & Hult, G. T. M. (2005).Figure 1. A Model of the Performance Implications of Fit Among Business Strategy, Marketing Organization Structure, and Strategic Behavior
Hypothesis
Prospectors firms
H1: The highest-performing prospector firms have marketing organizations that are characterized by a high number of specialists who operate in a decentralized, informal organization and who place a greater emphasis on customer and innovation orientations.
Analyzer firms
H2: The highest-performing analyzer firms have marketing organizations whose behaviors are focused on customers and competitors.
Low-Cost Defender firms — partially supported 포스코
H3: The highest-performing low-cost defender firms have marketing organizations that are characterized by few marketing specialists; formal and centralized decisionmaking processes; and a behavioral focus on internal operations, cost control, and competitors.
H4: The highest-performing differentiated defender firms have marketing departments that are characterized by a formal environment in which employees have considerable discretionary authority (i.e., decentralized) and are primarily focused on customers. 차별화된 전략을 도출하기위한 환경
TABLE 1 Predicted (and Observed) Relationships Between Predictor Variables and Performance by Strategy type
Method & Research Design
228 senior marketing managers
The questionnaire asked each respondent to refer either to the largest strategic business unit in the organization or to the one they were most familiar with when answering the questions.
measured all constructs on seven-point Likert scales
e.g.
Conclusion
Business (Marketing) Strategy → Marketing Role → Strategy Implementation → Superior Performance
There is now a substantial body of research that suggests that
successful business strategy → superior performance 성공적인 전략
(1) successful business strategy implementation is required for superior performance,
marketing role in strategy implementation 마케팅의 역할
(2) marketing plays a crucial role in strategy implementation, and
role of marketing in implementation ← strategy 어떤 마케팅을 하느냐가 마케팅의 role을 결정
(3) the role of marketing in implementation is contingent on the specific strategy in use.
Thus, we are quite comfortable recommending that managers take the steps described in this and related articles to implement their business strategy. At the same time, we encourage other scholars to continue the important work being done in this area.
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