A Participative Process of Strategy-Making and Firm Performance in Iranian Pharmaceutical Companies Strategy-Making and Firm Performance in Iranian Pharmaceutical Companies
Iranian Journal of Pharmaceutical Sciences,
Vol. 14 No. 1 (2018),
15 Dey 2018
,
Page 1-14
https://doi.org/10.22037/ijps.v14.40667
Abstract
Pharmaceutical companies are regarded as principal contributors to national economies all over the world owing to their substantial assistance to public health system; GDP, employment, and market growth. Consequently, pharmaceutical managers must take the necessary steps to improve strategy-making and firm performance. This study investigates the relationship between four conventional modes of strategy-making process and performance in pharmaceutical companies in Iran. This paper argues that small or knowledge-based pharmaceutical companies, similar to large pharmaceutical companies, place differing emphasis on strategy-making and could apply different approaches to strategy-making. Furthermore, the present research offers an explanation of the nature of these processes in pharmaceutical companies and hypothesizes how they are related to firm performance. It then describes the results of an empirical study on the strategy-making processes of pharmaceutical companies in Iran. Analysis of the data obtained from 125 pharmaceutical companies indicates that participative approaches to strategy-making exist in these pharmaceutical companies and could have a significant and strong relationship with firm performance.
Keywords:
- Pharmaceutical companies
- Strategy-making
- Participative mode
- Firm performance
- Knowledge-based pharmaceutical companies
- Rotated factor analysis
How to Cite
Abolfazli, S. A. ., Mohammadzadeh, M. ., Peiravian, F. ., & Sharifnia, S. H. . (2018). A Participative Process of Strategy-Making and Firm Performance in Iranian Pharmaceutical Companies: Strategy-Making and Firm Performance in Iranian Pharmaceutical Companies. Iranian Journal of Pharmaceutical Sciences, 14(1), 1–14. https://doi.org/10.22037/ijps.v14.40667
References
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[31] Parnell J.A, Crandall W. Rethinking participative decision making: a refinement of the propensity for participative decision making scale. Personnel Review.(2001) 30: 523-535.
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[34] Hillman A.J, Hitt M.A. Corporate political strategy formulation: a model of approach, participation, and strategic decisions. The Academy of Management Review. (1999) 24: 825-842.
[2] Hart S.L. ‘Intentionality and autonomy in strategy-making process: modes, archetypes, and firm performance’ In P. Shrivastava, A. Huff & J. Dutton (eds) Advances in Strategic Management Greenwich, CT: JAI Press. (1991) 7: 97-127.
[3] Robinson R.B, Pearce J.A. The impact of formalized strategic planning on financial performance in small organizations. Strategic Management Journal.(1983) 4: 197-207.
[4] Dess G.G, Lumpkin G.T, Covin J.G. Entrepreneurial strategy making and firm performance: tests of contingency and configurational models. Strategic Management Journal.(1997) 18: 677-695.
[5] Probst T.M. Countering the Negative Effects of Job Insecurity through Participative Decision-making: Lessons from the Demand–Control Model. Journal of Occupational Health Psychology.(2005)10: 320-329.
[6] Steinheider B, Bayerl P.S, Wuestewald T. The Effects of Participative Management on Employee Commitment, Productivity, and Community Satisfaction in a Police Agency. Paper presented at the annual meeting of the International Communication Association. Dresden International Congress Centre, Dresden, Germany. (2006)
[7] DeBruin W.B, Parker A.M, Fischhoff B. Individual differences in adult decision-making competence. Journal of Personality & Social Psychology.(2007)92: 938-956.
[8] Lumpkin G.T, Dess G.G. Simplicity as a Strategy-Making Process: The Effects of Stage of Organizational Development and Environment on Performance. THe Academy of Management Journal. (1995) 38: 1386-1407
[9] Robinson R.B, Pearce J.A. The impact of formalized planning on financial performance in small organizations. Strategic Management Journal.(1983) 4: 197-208.
[10] Pregelj L, Verreynne M-L, Hine D. mall pharmaceutical firms building capabilities to compete along the global research and development pipeline. International entrepreneurship in the life sciences. Edward Elgar Publishing. chapter 4. (2011); 64-100.
[11] Mehralian G.H. Exploring the relationship between the knowledge creation process and intellectual capital in the pharmaceutical industry. The Learning Organization.(2014) 21: 258-273.
[12] Beaver G, Jennings P. Editorial overview: small business, entrepreneurship and enterprise development. Strategic Change.(2000) 9: 397-403.
[13] Cooper A.C. Strategic management: new ventures and small business. In DE Schendel and CW Hofer (eds) Strategic management: a new view of business policy and planning Boston: Little Brown. (1979) 316-327.
[14] Ogunmokum G.O, Shaw R.N, FitzRoyp. T. Determinants of strategic planning behavior in small business: an exploratory investigation of small business organization in Australia. International Journal of Management.(1999)16: 190-202.
[15] Frost F.A. The use of strategic tools by small and medium-sized enterprises: an Australasian study. Strategic change.(2003) 12: 49–62.
[16] Rothaermel F.T. Strategic Management: Concepts and Cases. McGraw-Hill/Irwin.(2012) 20: 32-45.
[17] Dess G.G, Lumpkin G.T. Linking two dimensions of entrepreneurial orientation to firm performance: the moderating role of environment and industry life cycle. Journal of Business Venturing.(2001) 16: 429-451.
[18] Chaffee E.E. Three models of strategy. The Academy of Management Journal.(1985) 10: 89- 98.
[19] Crane D.P. The case for participative management. Business Horizons.(1976) 19: 15-21.
[20] Parnell J.A, Bell E.D, Taylor R. the propensity for participative management: a conceptual and empirical analysis. The Mid-Atlantic Journal of Business.(1992) 28: 31-42.
[21] Parnell J.A, Carraher S, Holt K. Participative management's influence on effective strategic diffusion. Journal of Business Strategies.(2002) 19: 161-179.
[22] Floyd S.W, Wooldridge B. Middle management involvement in strategy and its association with strategic type: a research note. Strategic Management Journal.(1992) 13: 153-167.
[23] Cutting B, Kouzmin A. The emerging patterns of power in corporate governance - back to the future in improving corporate decision making. Journal of Managerial Psychology.(2000) 15: 477-497.
[24] Dean T.J, Brown R.L, Bamford CE. Differences in large and small firm responses to environmental context: strategic implications from a comparative analysis of business formations. Strategic Management Journal.(1998) 19: 709-728.
[25] Castrogiovanni G.J, Justis R.T. Strategic and contextual influences on firm growth: an empirical study of franchisors. Journal of Small Business Management.(2002) 40: 98-108.
[26] Cameron A, Massey C. Small business, a New Zealand perspective Auckland: Longman. (1999)
[27] (a) Verreynne M-L, Meyer D. The effect of industry life cycle stage on the strategy-making–firm performance relationship. Proceedings of the 20th ANZAM (Australian New Zealand Academy of Management) Conference on "Management: Pragmatism, Philosophy, Priorities", 6-9 2006, Central Queensland University. (b) Verreynne M-L. Participative Strategy-Making Processes in Small Firms. Journal of Health Organisation and Management.(2006) 12: 209-222. (c) Verreynne M-L. Strategy-making process and firm performance in small firms. Journal of management & organization. (2006) 12: 3: 209-222.
[28] Van Gelderen M, Frese M, Thurik R. Strategies, uncertainty and performance of small business startups. Small Business Economics.(2000) 15: 165-181.
[29] Wooldridge B, Floyd S.W. The strategy process, middle management involvement, and organizational performance. Strategic Management Journal.(1990) 11: 231-241.
[30] Nutt PC. Strategic decision-making’ In MA Hitt, RE Freeman and JS Harrison (eds) The Blackwell handbook of strategic management Oxford: Blackwell. (2001) 35-49.
[31] Parnell J.A, Crandall W. Rethinking participative decision making: a refinement of the propensity for participative decision making scale. Personnel Review.(2001) 30: 523-535.
[32] Hair J.F, Anderson R.E, Tatham RL, Black WC. Multivariate data analysis (5 ed) New Jersey: Prentice-Hall. (1998)
[33] Page C, Meyer D. Applied research design for business and management Sydney: McGraw-Hill. (2000)
[34] Hillman A.J, Hitt M.A. Corporate political strategy formulation: a model of approach, participation, and strategic decisions. The Academy of Management Review. (1999) 24: 825-842.
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