Article1999

Strategic consensus and performance: the role of strategy type and market-related dynamism

258 citations0/0 files storedStrategic Management Journal

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Management and Organizational Practices Organizational Strategy and Culture Organizational Management and Leadership

Abstract

This paper examines the link between consensus among senior managers and performance at the SBU level and considers factors which may moderate the strength of this relationship. Using data from a cross-national study in three industry sectors, the authors find that consensus increases the performance of the SBU in the case of a differentiation strategy but not in the case of a low-cost strategy. Additionally, the relationship between consensus on a differentiation strategy and performance is negatively influenced by dynamism of the market. This research thus clarifies and extends prior consensus research by indicating the conditions under which consensus positively affects performance. For managers, our results indicate that investing managerial time in obtaining consensus is more important for a differentiation than for a low-cost strategy and is particularly important when using a differentiation strategy in a stable environment. Copyright © 1999 John Wiley & Sons, Ltd.

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References

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Cited by

2003The influence of business strategy on new product activity: The role of market orientation 2006The Role of Formative Measurement Models in Strategic Management Research: Review, Critique, and Implications for Future Research 2005The Lack of Consensus About Strategic Consensus: Advancing Theory and Research 2015A stakeholder approach to corporate social responsibility, reputation and business performance 2000Belaboring the Not-So-Obvious: Consensus, Commitment, and Strategy Implementation Speed and Success 2004

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