IMPACT OF STRATEGIC MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE: EMPIRICAL STUDIES OF SELECTED FIRMS IN LIBYA
Keywords:Strategic Client Focus, Strategic Human Capital, Strategic Management Outcomes, Technology, Libyan Firms, Libyan banks
Purpose- The question of how the business organization makes and executes their organizational policies, programs, action plans, and how they follow through with their implementation remains of paramount significance to the organization. This study investigates the impacts of strategic client focus, strategic human capital, strategic management outcomes, and technology on organizational performance.
Material and Methods- Data collected from 408 employees of a selected organization in Tripoli, Libya was used to verify the abovementioned relationships via PLS-SEM. A structured questionnaire was utilized to extract information from respondents using primary data. The data was evaluated using the probabilistic random sampling technique.
Findings- The results revealed that strategic client focus has a significant impact on the performance of the organization The impact of strategic human capital on organizational performance is important. Organizational performance is influenced by strategic management outcomes and technology.
Research Limitations- Results in this study are limited to the Libyan banks.
Practical Implications- The outcomes of this study have crucial practical implications for organizations in Libya. The study suggests that the company's management should seek to implement strategic management drivers in addition to the other strategic management drivers assessed in this study.
Abdullah, M. M. bin, Uli, J., & Tarí, J. J. (2008). The influence of soft factors on quality improvement and performance: Perceptions from managers. TQM Journal, 20(5), 436–452. https://doi.org/10.1108/17542730810898412
ALDamoe, F. M. A., Yazam, M., & Hamid, K. A. (2013). Human Resource Management Practices on Organizational Performance in Libya Firm. Public Administration Research, 2(1). https://doi.org/10.5539/par.v2n1p29
Anaza, N. A., & Rutherford, B. (2012). How organizational and employee-customer identification, and customer orientation affect job engagement. Journal of Service Management, 23(5), 616–639. https://doi.org/10.1108/09564231211269801
Andrews, R. (2009). Organizational task environments and performance: An empirical analysis. International Public Management Journal, 12(1), 1–23. https://doi.org/10.1080/10967490802646813
Arokiasamy, A. A. R., Rizaldy, H., & Qiu, R. (2022). Exploring the Impact of Authentic Leadership and Work Engagement on Turnover Intention: The Moderating Role of Job Satisfaction and Organizational Size. Advances in Decision Sciences, 26(2).
Beckmann, M., Garkisch, M., & Zeyen, A. (2021). Together we are strong? A systematic literature review on how SMEs use relation-based collaboration to operate in rural areas. Journal of Small Business and Entrepreneurship. https://doi.org/10.1080/08276331.2021.1874605
Beer, M., Voelpel, S. C., Leibod, M., & Tekie, E. B. (2005). Strategic management as organizational learning: Developing fit and alignment through a disciplined process. Long Range Planning, 38(5), 445–465. https://doi.org/10.1016/j.lrp.2005.04.008
Bontis, N. (2001). Assessing knowledge assets: a review of the models used to measure intellectual capital. International Journal of Management Reviews, 3(1), 41–60.
Bontis, N., & Fitz-enz, J. (2002). Intellectual capital ROI: A causal map of human capital antecedents and consequents. Journal of Intellectual Capital, 3(3), 223–247. https://doi.org/10.1108/14691930210435589
Brynjolfsson, E., & Saunders, A. (2009). Wired for Innovation: How Information Technology is Reshaping the Economy.
Cardona, M., Kretschmer, T., & Strobel, T. (2013). ICT and productivity: Conclusions from the empirical literature. Information Economics and Policy, 25(3), 109–125. https://doi.org/10.1016/j.infoecopol.2012.12.002
Chotekorakul, W., & Nelson, J. (2013). Customer orientation, merchandising competencies, and financial performance of small fashion retailers in Bangkok. Journal of Fashion Marketing and Management, 17(2), 225–242. https://doi.org/10.1108/JFMM-02-2011-0007
David, F. R. (2011). Strategic management : concepts and cases. Prentice Hall.
Endri. (2012). Peran Human Capital Dalam Meningkatkan Kinerja Perusahaan: Suatu Tinjauan Teoritis dan Empiris. Ilmu Dan Budaya.
Epstein, M. J., Jones, J. H., & Manzoni, J.-F. O. (2004). Performance Measurement and Management Control:Superior Organizational Perfromance. STUDIES IN MANAGERIAL AND FINANCIAL ACCOUNTING, 14.
Forza, C., & Filippini, R. (1998). TQM impact on quality conformance and customer satisfaction: A causal model. International Journal of Production Economics, 55, 1–20.
Fuentes, M. M. F., Montes, F. J. L., & Fernández, L. M. (2006). Total quality management, strategic orientation and organizational performance: The case of Spanish companies. In Total Quality Management and Business Excellence (Vol. 17, Issue 3, pp. 303–323). https://doi.org/10.1080/14783360500451358
Guest, D. E. (1987). Human Resource Managamenet and Industrial Relations. Journal of Management Studies, 24(5).
Hair, J., Hollingsworth, C. L., Randolph, A. B., & Chong, A. Y. L. (2017). An updated and expanded assessment of PLS-SEM in information systems research. Industrial Management and Data Systems, 117(3), 442–458. https://doi.org/10.1108/IMDS-04-2016-0130
Hall, B. H., Lotti, F., & Mairesse, J. (2013). Evidence on the impact of R&D and ICT investments on innovation and productivity in Italian firms. Economics of Innovation and New Technology, 22(3), 300–328. https://doi.org/10.1080/10438599.2012.708134
Ilesanmi, O. A. (2011). The Role of Strategic Vision Process in Business Development in Nigeria. Global Journal of Management and Business Research, 11.
Ishaq, M. I., & Danish, R. Q. (2014). Role of Corporate Image, Product Quality and Customer Value in Customer Loyalty: Intervening Effectof Customer Satisfaction. Journal of Basic and Applied Scientific Research, 4(4), 89–97. www.textroad.com
Ittner, C. D., & Larcker, D. F. (2001). Assessing empirical research in managerial accounting: a value-based management perspective $. In Journal of Accounting and Economics (Vol. 32).
Kimani, K. A. (2015). Impact of Information Technology on Organizational Performance: Case of Population Services Kenya. University of Nairobi.
Koellinger, P. (2008). The relationship between technology, innovation, and firm performance-Empirical evidence from e-business in Europe. Research Policy, 37(8), 1317–1328. https://doi.org/10.1016/j.respol.2008.04.024
Lepak, D. P., & Snell, S. A. (1999). THE HUMAN RESOURCE ARCHITECTURE: TOWARD A THEORY OF HUMAN CAPITAL ALLOCATION AND DEVELOPMENT. Academy of Management Review, 24(I), 31–48.
Mangi, R. A. (2009). Human Capital a Source of Competitive Advantage "Ideas for Strategic Leadership." Australian Journal of Basic and Applied Sciences, 3(4), 4182–4189. https://www.researchgate.net/publication/259032973
Mojtahedzadeh, R., & Arumugam, V. C. (2011). Determinants of TQM in the Iranian Automotive Industry: A Theoretical Approach. International Journal for Quality Research UDK-005, 6(55), 629.
Moslehpour, M., Altantsetseg, P., Mou, W., & Wong, W. K. (2019). Organizational climate and work style: The missing links for sustainability of leadership and satisfied employees. Sustainability, 11(1). https://doi.org/10.3390/su11010125
Ohazulike, L. A., & Nkoli, C. (2013). The Essence of Business Management and Entrepreneurship in the Nigerian Marketing System. African Journal of Education, Science and Technology, 1(1).
Olanipekun, W. D., Abioro, M. A., Akanni, L. F., Arulogun, O. O., & Rabiu, R. O. (2015). Impact of Strategic Management on Competitive Advantage and Organisational Performance - Evidence from Nigerian Bottling Company. Journal of Policy and Development Studies, 9(2), 185–198. https://doi.org/10.12816/0011216
Phina, O. N. (2020). Effects of Strategic Management on Organizational Performance in Manufacturing Firms in South-East Nigeria. Asian Journal of Economics, Business and Accounting, 24–31. https://doi.org/10.9734/ajeba/2020/v15i230211
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies. In Journal of Applied Psychology (Vol. 88, Issue 5, pp. 879–903). https://doi.org/10.1037/0021-9010.88.5.879
Rayan, R. A., Tsagkaris, C., & Zafar, I. (2021). IoT-Integrated Robotics in the Health Sector. In Robotic Technologies in Biomedical and Healthcare Engineering (pp. 1–11). CRC Press. https://doi.org/10.1201/9781003112273-1
Rojas, M., Álvarez, G., Morales, G., & Moreno, G. (2014). The use of technology to improve organizational performance through corporate entrepreneurship. In The International Journal of Management Science and Information Technology (Issue 14). NAISIT Publishers. http://hdl.handle.net/10419/178785www.econstor.eu
Samson, D., & Terziovski, M. (1999). Relationship between total quality management practices and operational performance. Journal of Operations Management, 17(4), 393–409. https://doi.org/10.1016/S0272-6963(98)00046-1
Sherwin, R., & Corpuz, A. (2021). ISO 9001:2015 Quality Management System Requirements and Audit Findings Classification Using Support Vector Machine and Long Short-Term Memory Neural Network: An Optimization Method. In S. A. Corpuz / Mindanao Journal of Science and Technology (Vol. 19, Issue 1).
Simon, M., van den Driest, F., & Wilms, T. (2016). Driving customer-centric growth: A practical roadmap: The pivotal role of insights and analytics in the customer-centric organization. Journal of Advertising Research, 56(2), 159–168. https://doi.org/10.2501/JAR-2016-029
Snell, S. A., & Dean, J. W. (1992). Integrated Manufacturing and Human Resource Management: A Human Capital Perspective. Academy of Managemenl Journal, 35(3), 467–504.
Sulistiawan, J., Moslehpour, M., Diana, F., & Lin, P. K. (2022). Why and When Do Employees Hide Their Knowledge? Behavioral Sciences, 12(2). https://doi.org/10.3390/bs12020056
Tehseen, S., & Ramayah, T. (2015). Entrepreneurial competencies and smes business success: The contingent role of external integration. Mediterranean Journal of Social Sciences, 6(1), 50–61. https://doi.org/10.5901/mjss.2015.v6n1p50
Thompson, A. A. (2018). Crafting and executing strategy : the quest for competitive advantage : concepts and cases.
Tran, Q., Zhang, C., Sun, H., & Huang, D. (2014). Initial adoption versus institutionalization of E-procurement in construction firms: An empirical investigation in Vietnam. Journal of Global Information Technology Management, 17(2), 91–116. https://doi.org/10.1080/1097198X.2014.928565
Vecchio, R. P. (2003). Entrepreneurship and leadership: Common trends and common threads. Human Resource Management Review, 13(2), 303–327. https://doi.org/10.1016/S1053-4822(03)00019-6
Waweru, P. K., & Omwenga, J. (2015). The Influence of Strategic Management Practices on Performance of Private Construction Firms in Kenya IJSRP Journal The Influence of Strategic Management Practices on Performance of Private Construction Firms in Kenya. International Journal of Scientific and Research Publications, 5(6). www.ijsrp.org
Yu, Y., Dong, X. Y., Shen, K. N., Khalifa, M., & Hao, J. X. (2013). Strategies, technologies, and organizational learning for developing organizational innovativeness in emerging economies. Journal of Business Research, 66(12), 2507–2514. https://doi.org/10.1016/j.jbusres.2013.05.042
Zollo, M., & Singh, H. (2004). Deliberate learning in corporate acquisitions: Post-acquisition strategies and integration capability in U.S. bank mergers. In Strategic Management Journal (Vol. 25, Issue 13, pp. 1233–1256). https://doi.org/10.1002/smj.426
How to Cite
Copyright (c) 2022 Advances in Decision Sciences
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.