Relationship of Career Success and Organizational Performance Through the Path of Business Strategy
DOI:
https://doi.org/10.31436/ijema.v28i1.675Keywords:
Business strategy, Career success, Organizational performance, Banking sectorAbstract
Aim of this research was to find out the mediation of career success between the relationship of Business Strategy along with its four dimensions (Business Strategy prospectors, Business Strategy defenders, Business Strategy analyzers and Business Strategy reactors) and organizational performance. This research was conducted in the banking sector of Lahore, Pakistan. Data were collected through structured questionnaires by simple random sampling technique. Total 385 questionnaires were administrated to respondents; 334 were returned, 31 were discarded and 303 were used for analysis. Findings showed significant impacts of Business Strategy on career success and organizational performance and for impact of these two kinds (Business Strategy Prospectors and Business Strategy Defenders) on organizational performance. The impact of two other factors (Business Strategy Analyzers and Business Strategy Reactors) on organizational performance was insignificant. Career success has positive significant effect on organizational performance. Career success partially mediates with Business Strategy (with its two kinds Business Strategy Prospector and Business Strategy Defender) with organizational performance. Business Strategy Analyzers and Business Strategy Reactors were rejected as mediators. Because of time constraint, data were not collected from more banks. This research adds to the body of literature by considering the mediation effect of career success between the relationship of Business Strategy as a whole and with dimensions of organizational performance, also by empirical checking of the relationship between career success and Business Strategy.
References
Aamodt, A.A. “Strategic Human Resource Management Effectiveness and Firm Performance.†International Journal of Human Resource Management 12, no. 2 (2007): 299-310.
Abbas, Q., and S. Yaqoob. “Effect of Leadership Development on Employee Performance in Pakistan.†Pakistan Economic and Social Review 47, no. 2 (2009): 269-92.
Adegbuyi, O.A., A.O. Oke, R.E. Worlu, and A.M. Ajagbe, “Archival Review of the Influence of Organizational Strategy on Organizational Performance.†Proceedings of the Covenant University International Conference on African Development Issues, May 11-13, 2015: 334-0.
Afiouni, F. “Human Resource Management and Knowledge Management: A Road Map Toward Improving Organizational Performance.†Journal of American Academy of Business 11, no. 2 (2007): 124-30.
Ajagbe, A.M., F. Inelo, E.E. Udo, A.A. Uduimoh, and S.E. Akpan. “Business Strategy as a Contributor to Organizational Performance.†International Journal of Advanced Academic Research 2, no. 3 (2016): 1-19.
Alchian, A., and H. Demsetz. “Production, Information Costs, and Economic Organization.†American Economic Review 62, no. 4 (1972): 777-95.
Ali, I., K.U. Rehman, S.I. Ali, J. Yousaf, and M. Zia. “Corporate Social Responsibility Influences, Employee Commitment and Organizational Performance.†African journal of Business Management 4, no. 13 (2010): 2796-801.
Alvarez, S.A., and J.B. Barney. “Resource-based Theory and the Entrepreneurial Firm.†Strategic Entrepreneurship: Creating a New Mindset 89. no.1 (2002): 87-105.
Andrews, R., G.A. Boyne, J. Law, and R.M. Walker. “Strategy, Structure and Process in the Public Sector. A Test of the Miles and Snow Model.†Public Administration 87, no. 4 (2009): 732-49.
Aragón-Sánchez, A. and G. Sánchez-MarÃn. “Strategic Orientation, Management Characteristics, and Performance: A Study of Spanish SMEs.†Journal of Small Business Management 43, no. 3 (2005): 287-308.
Arasli, H., S.T. Katircioglu, and S.M. Smadi. “A Comparison of Service Quality in The Banking Industry: Some Evidence from Turkish- And Greek- Speaking Areas in Cyprus.†International Journal of Bank Marketing 23, no. 7 (2005): 508-26.
Armstrong, G. and Barron, O. Strategic Thinking and the New Science: Planning in the Midst of Chaos Complexity and Change. New York: Free Press, 2002.
Barney, J.B. “Firm Resources and Sustained Competitive Advantage.†Journal of Management 1, no. 17 (1991): 99-120
______. Gaining and Sustaining Competitive Advantage. Upper Saddle River, New Jersey: Pearson Education Inc., 2002.
Baron, R.M., and A.K. David. “The Moderator–Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, And Statistical Considerations.†Journal of Personality and Social Psychology 51, no. 6 (1986): 1173-82.
Bititci, U., P. Garengo, V. Dörfler, and S. Nudurupati. “Performance Measurement: Challenges for Tomorrow.†International Journal of Management Reviews 14, (2012): 305-27.
Bolman, G. Lee, and Terrance E.D. Reframing organizations. San Francisco: Jossey-Bass, 2003.
Brunk, S.E. “From Theory to Practice: Applying Miles and Snow's Ideas to Understand and Improve Firm Performance.†Academy of Management Executive 17, no.4 (2003): 105-8.
Butt, F.Y. “A Measure of Banking Industry Paradigm in Pakistan.†SSRN, 2010. https://papers.ssrn.com/sol3/papers.cfm?abstract _id=1696862
Cascio, W.F. Managing Human Resources: Productivity, Quality of Life, Profits. Tata: McGraw-Hill Irwin, 2006.
Chen, L.Y., and F.B. Barnes. “Leadership Behaviors and Knowledge Sharing Inprofessional Service Firms Engaged in Strategic Alliances.†Journal of Applied Management and Entrepreneurship 11, no. 2 (2006): 51-69.
Conant, J.S., M.P. Mokwa, and P.R. Varadarajan. “Strategic Types, Distinctive Marketing Competencies and Organizational Performance: A Multiple Measures Based Study.†Strategic Management Journal 11, no.5 (1990): 365-83
Daft, Richard L. Organization Theory and Design. USA: South-Western College Publishing, Thomson Learning, 2000.
Dahan. J., Y. Dufour. “Middle Managers’ Career Success and Business Strategy in the Canadian Aerospace Industry a Configurational Analysis in the Context of Innovation and Costs Leadership.†Asia-Pacific Journal of Business Administration 4, no. 1 (2012): 82-94.
DeClerk, C. “The Relationship Between Retail Store Manager Leadership Styles and Employee Generational Cohort, Performance, and Satisfaction.†D.M. Dissertation, University of Phoenix, United States, Arizona, 2008.
DeSarbo, W., A. Di Bendetto, M. Song. and I. Sinha. “Revisiting the Miles and Snow Strategic Framework: Uncovering Interrelationships Between Strategic Types, Capabilities, Environmental Uncertainty, and Firm Performance.†Strategic Management Journal 26, no. 1 (2005): 47-74.
Diamantopoulos, A., and B.B. Schlegelmilch. “Determinants of Industrial Mail Survey Response: A SurveyOnSurveys Analysis of Researchers' and Managers' Views.†Journal of Marketing Management 12, no. 6 (1997): 505-31.
Djaharuddin, D, A.R. Kadir, and I. Sudirman. “Review on: Company Strategic Competitive Power.†Scientific Research Journal (SCIRJ) 4, no. 4 (2018): 39-47.
Dierickx, I., and K. Cool. “Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply.†Management Science 35, no. 12 (1989): 1514.
Dollinger, M., and P. Golden. “Inter-organizational and Collective Strategies in Small Firms: Environmental Effects and Performance.†Journal of Management 18 (1992): 695-715.
Doty, D.H., W.H. Glick, and G. Huber. “Fit, Equifinality, and Organizational Effectiveness: A Test of Two Configurational Theories.†Academy of Management Journal 36, no. 6 (1993): 1196-250.
Fadeyi, Olatunji, O.A. Adegbuyi, Adunola Oluremi Oke, and Akintunde M. Ajagbe. “Review of Organizational Strategy and Structure (1962-2015). Proceedings of the Covenant University International Conference on African Development Issues, May 11-13, 2015: 341-8.
Fiss, P.C. “Building Better Causal Theories: A Fuzzy Set Approach to Typologies in Organization Research.†Academy of Management Journal 54, no.2 (2011): 393-420.
Greenhaus, Jeffrey H. “Career Dynamics.†In Comprehensive Handbook of Psychology, Industrial and Organizational Psychology edited by Borman, W.C., Ilgen, D.R. and Klimoski, R.J. New York: Wiley 12 (2003): 519-40.
______, S. Parasuraman, and W.M. Wayne. “Effects of Race on Organizational Experiences, Job Performance Evaluations, and Career Outcomes.†Academy of Management Journal 33, no.1 (1990): 64-86.
Gunz, H.P. and P.A. Heslin. “Reconceptualizing Career Success.†Journal of Organizational Behavior 26 (2005): 105-11.
Guo, W., H. Xiao, and X. Yang. “An Empirical Research on the Correlation Between Human Capital and Career Success of Knowledge Workers in Enterprise.†Physics Procedia 25 (2012): 715-25.
Hassan, H. “The Relationship Between Firms’ Strategic Orientations and Strategic Planning Process.†International Journal of Business and Management 5, no. 11 (2010): 35-49.
Heffernan, M.M. and P.C. Flood. “An Exploration of the Relationship between Managerial Competencies Organizational, Characteristic and Performance in an Irish Organization.†Journal of European Industrial Training 24, no. 2 (2000): 128-36.
Heslin, P.A. “Conceptualizing and Evaluating Career Success.†Journal of Organizational Behavior6, (2005): 113-6.
______. “Self- and Other-Referent Criteria of Career Success.†Journal of Career Assessment 11 (2003): 262-82.
Huck, Schuyler W. Reading Statistics and Research (5th Edition). New York: Allyn and Bacon, 2004.
Hughes, E.C. “Institutional Office and the Person.†Am. J. Social 43 (1937): 404-13.
Hu, H., and T. Hafsi. “Strategic change in a shifting institutional context.†Journal of Change Management 10, no.3 (2010): 293-313.
Hult, G.T.M., D.J. Ketchen Jr, D.A. Griffith, B.R. Chabowski, M.K. Hamman, B.J. Dykes, W.A. Pollitte, and S.T. Cavusgil. “An Assessment of the Measurement of Performance in International Business Research.†Journal of International Business Studies 39 (2008): 1064-80.
Hur, Yongbeom. “Organizational Performance, Turnover, and Human Resource Management: Focusing on Municipal Police Services.†University of Kentucky Doctoral Dissertations, 2007. https://uknowledge.uky.edu/gradschool_diss/524.
Ingram, T., Kraśnicka, T., Wronka-Pośpiech, M., Głód, G., and Głód, W. “Relationships between Miles and Snow Strategic Types and Organizational Performance in Polish Production Companies.†Journal of Management and Business Administration 24, no. 1 (2016): 17-45.
Iqbal, S., and R.R.K. Sharma. “A Study of Organization Strategies, Structures, Culture Dimensions and Management Control Systems of Various Retail Formats.†Journal of International Business Strategy 12, no. 1 (2012):70-73
Isoherranen, V., and P. Kess. “Analysis of Strategy by Strategy Typology and Orientation Framework.†Modern Economy 2, no. 4 (2011): 575-83.
Israel, Glenn D. Sampling The Evidence of Extension Program Impact. Program Evaluation and Organizational Development, IFAS, University of Florida.PEOD-5. October. (1992).
Jensen, M., and W. Meckling. “Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure.†Journal of Financial Economics (1976): 305-60.
Judge, T.A., C.A. Higginins, C.J. Thoresen, and M.R. Barrick. “The Big Five Personality Traits, General Mental Ability, and Career Success Across the Life Span.†Personnel Psychology 52, no. 3 (1999): 621-52.
Kabanoff, B. and S. Brown. “Knowledge Structures of Prospectors, Analyzers, and Defenders: Content, Structure, Stability, And Performance.†Strategic Management Journal 29, no. 2 (2008): 149-71.
Kim, E., D.I. Nam, and J.L. Stimpert. “Testing the Applicability of the Porter’s Generic Strategies in the Digital Age: A Study of Korean Cyber Malls.†Journal of Business Strategies 21, no. 1 (2004): 19-45.
LaRue, Bruce, Paul Childs, and Kerry Larson. Leading Organizations from the Inside Out: Unleashing the Collaborative Genius of Action-Learning Teams. New York: John Wiley & Sons Inc., 2004.
Lewis, I. “The Quantum Skills Model in Management: A New Paradigm to Enhance Effective Leadership.†Leadership and Organizational Development Journal 22, no. 6 (2008): 264-73.
Long, C.S., P. Perumal, and A.M. Ajagbe. “The Impact of Human Resource Management Practices on Employees’ Turnover Intention: A Conceptual Model.†Interdisciplinary Journal of Contemporary Research in Business 4, no. 2 (2012): 629-41.
Laugen, B.T., H. Boer, and N. Acur. “The New Product Development Improvement Motives and Practices of Miles and Snow’s Prospectors, Analyzers and Defenders.†Creativity and InnovationManagement 15, no. 1 (2006): 85-95.
Maniam, V.A., “Theorizing Career Success Perception as a
Mediator between Managerial Learning and the Learning Organization.†PEOPLE: International Journal of Social Sciences 3, no. 1 (2017): 597-611.
Mantere, S., H.A. Schildt, and J.A. Sillince. “Reversal of Strategic Change.†Academy of Management Journal 55, no. 1 (2012): 173-96.
March, J.G., and R.I. Sutton. “Organizational Performance as a Dependent Variable.†Organization Science8 (1997): 698-706.
Mardanov, I.T., K. Heischmidt, and A. Henson. “Leader-member Exchange and Job Satisfaction Bond and Predicted Employee Turnover.†Journal of Leadership and Organizational Studies 15, no. 2 (2008): 159-75.
Markides, C.C., and P.J. Williamson. “Corporate Diversification and Organizational Structure: A Resource-Based View.†Academy of Management journal 39, no. 2 (1996): 340-67.
Miles, R.E., G. Miles, C.C. Snow, K. Blomqvist, and H. Rocha. “The I-form Organization.†California Management Review 51, no. 4 (2009): 61-76.
______, C.C. Snow, A.D. Meyer, and Jr, H.J. Coleman. “Organizational Strategy, Structure, and Process.†Academy of Management Review 3, no.3 (1978): 546-62.
Meade, J. “Boost Careers and Succession Planning.†HR Magazine (2000): 175-8.
Naseer. M, A. Mahmood, and S. Kanwal. “Impact of Career Success on Organizational Performance: A Study of Health Care Sector.†Pakistan Journal of Commerce and Social Sciences 9, no. 3 (2015): 742-60.
Nunnally, Jum C., and I.H. Bernstein. Psychometric Theory (3rd ed.). New York: McGraw- Hill, 1978.
Ologunde, A.O., and A.A. Akinlolu. “Business Strategy as a Measure of Organizational Performance.†International Journal of Business and Management 7, no. 1 (2012): 241-53.
Oosthuizen, H. “Business Strategy and Marketing: The Positioning Versus Resource-Based Dichotomy and the Way Forward.†South African Journal of Business Management 33, no. 3 (2002): 1-16.
Parsons, Frank. Choosing a Vocation. Boston, MA: Houghton Mifflin, 1909.
Parnell, J.A. “Strategic Clarity, Business Strategy and Performance.†Journal of Strategy and Management 3, no. 4 (2010): 304-24.
Pittino, D., and F. Visintin. “Innovation and Strategic Types of Family Smes: A Test and Extensions of Miles and Snow’s Configurational Model.†Journal of Enterprising Culture 17, no. 3 (2009): 257-95.
Pleshko, L. and I. Nickerson. “Strategic Orientation, Organizational Structure, and the Associated Effects on Performance in Industrial Firms.†Academy of Strategic Management Journal 7, no. 1 (2008): 95-110.
Powell, T.C. “Organizational Alignment as Competitive Advantage.†Strategic Management Journal 13, no.2 (1992): 119-34.
Pushpakumari, A.A. and W. Wijewickrama, 21st Century Management - A Reference Handbook. 2455 Teller RoadThousand Oaks, California: SAGE Publications, Inc., 2008.
Rehman, S.U., R. Mohamed, and H. Ayoup. “The Mediating Role of Organizational Capabilities Between Organizational Performance and its Determinants.†Journal of Global Entrepreneurship Research 9, no. 1 (2019): 9-30.
Richard, P.J., T.M. Devinney, G.S. Yip, and G. Johnson. “Measuring Organizational Performance: Towards Methodological Best Practice.†Journal of Management 35 (2009): 718-804.
RodrÃguez, J.M., and J. Ventura, (2003). “Human resource management systems and organizational performance: An analysis of the Spanish manufacturing industry.†The International Journal of Human Resource Management 14, no.7 (2003): 1206-26.
Scott, W. Richard, and Davis, G. Organizations: Rational, Natural, and Open Systems. (5th ed.). Upper Saddle River, New Jersey: Prentice Hall, 2007.
Segev, E. “Strategy Strategy-Making and Performance in a Business Game.†Strategy Management Journal 8 (1987): 566-77.
Seibert, S.E., and M.L. Kramer. “The Five-Factor Model of Personality and Career Success.†Journal of Vocational Behaviour 58 (2001): 1-21.
Seibert, S., J. Crant, and M. Kraimer. “Proactive Personality Ans Career Success.†Journal of Applied Psychology 84, no. 3 (1999): 416-27.
Simon, Herbert A. Administrative Behavior Organization (3rd ed.). New York: Macmillan, 1976.
Singh, S., and T.K Darwish, and K. Potocnik. (2016). “Measuring Organisational Performance a Case for Subjective Measure.†British Journal of Management 27, no. 1 (2016): 214-24.
Sirota Survey Intelligence. “Companies Least Prepared for Keeping Employees Engaged in Their Jobs and Baby Boomer Retirements, Says Survey.†Press Release. August 8, 2010.
Snow, C.C., R.E. Miles, and G. Miles. “A Configurational Approach to The Integration of Strategy and Organization Research.†Strategic Organization 3, no. 4 (2005): 431-39.
Som, A. “Innovative Human Resource Management and Corporate Performance in the Context of Economic Liberalization in India.†The International Journal of Human Resource Management 19, no.7 (2008): 1278-97.
Spanos, Y.E., G. Zaralis, and S. Lioukas. “Strategy and Industry Effects on Profitability: Evidence from Greece.†Strategic Management Journal 25, no. 2 (2004):139-65.
Stankard, Martin F. Management Systems and Organizational Performance: The Search for Excellence Beyond ISO9000. Westport, CT, USA: Greenwood Publishing Group, 2002.
Stannack, P. “Perspective on Employees Performance.†Management Research News 19, no. 4/5 (1996): 38-40.
Sultana, M., M. Rashid, M. Mohiuddin, and M. Mazumder. “Cross-cultural Management and Organizational Performance: A Content Analysis Perspective.†International Journal of Business and Management 8, no. 8 (2013): 133-46.
Sturges, J. “What it Means to Succeed: Personal Conceptions of Career Success Held by Male and Female Managers at Different Ages.†British Journal of Management 10, no. 3 (1999): 239-52.
Super, D.E. “A Life-Span, Life-Space Approach to Career Development.†In Career Choice and Development: Applying Contemporary Theories to Practice edited by Brown, D., Brooks, L. (1990): 197-261.
Tandon, A., R.R.K. Sharma, and N.S. Uma. “ERP Implementation Approach in Defender Organizations: An Empirical Study.†International Journal of Business Research 10, no. 2 (2010): 281-4.
Tang, Z. and Tang, J. “Entrepreneurial Orientation and SME Performance in China’s Changing Environment: The Moderating Effects of Strategies.†Asia Pacific Journal of Management 29, no. 2 (2012): 409-31.
Van den Born, A., and A. Van Witteloostuijn. “Drivers of Freelance Career Success.†Journal of Organizational Behavior 34, no. 1 (2013): 24-46.
Wang, C.L. “Entrepreneurial Orientation, Learning Orientation, and Firm Performance.†Entrepreneurship: Theory and Practice 32, no. 4 (2008): 635-57.
Wagner, J.A. “Studies of Individualism– Collectivism: Effects on Cooperation in Groups.†Academy of Management Journal 38, no. 1 (1995): 152-72.
Watson Wyatt. “Disconnect Between Employers, Employees Threatens Loss of Key Workers, Watson Wyatt Finds.†Press release [www. benefitslink. com] (2006 November 15).
Wright, P., M. Kroll, P. Chan, and K. Hamel. “Strategic Profiles and Performance: An Empirical Test of Select Key Propositions.†Journal of the Academy of Marketing Science 19, no. 3 (1991): 245-54.
Yang, M.J., L. Kueng, and B. Hong, Business Strategy and the Management of Firms (No. w20846). National Bureau of Economic Research. 2015.
Yanney, J.P. “Business Strategy and Leadership Style: Impact on Organizational Performance in the Manufacturing Sector of Ghana.†American Journal of Industrial and Business Management 4 (2014): 767-75.
Yuliansyah Y., B. Gurd, and N. Mohamed. “The Significant of Business Strategy in Improving Organizational Performance.†Humanomics 33, no. 1 (2017): 56-74.
Zahra, S.A., J.A. Pearce II. “Research Evidence on the Miles and Snow Typology.†Journal of Management 16, no. 4 (1990): 751-68.
Downloads
Published
How to Cite
Issue
Section
