The effect of strategic complexity on marketing strategy and organizational performance

Citation

(2006), "The effect of strategic complexity on marketing strategy and organizational performance", Strategic Direction, Vol. 22 No. 4. https://doi.org/10.1108/sd.2006.05622dad.001

The effect of strategic complexity on marketing strategy and organizational performance

The effect of strategic complexity on marketing strategy and organizational performance

Neill S., Rose G. M. Journal of Business Research (USA), Jan 2006, Vol. 59 No. 1, Start page: 1, No. of pages: 10

Purpose – to examine the effects of strategic complexity on marketing strategy processes and organizational performance. Design/methodology/approach – assumes a cognitive perspective, exploring an organization’s ability to integrate multiple environmental domains simultaneously. Notes that organizations can either absorb variety in interpreting their environment by holding multiple, potentially conflicting, interpretations, or to reduce understanding to a single representation. Discusses the effects of strategic complexity and its impact on marketing strategy processes through the consideration of multiple perspectives or improvisation and on customer-based, efficiency-based and financially-based organizational performance. Suggests that strategically complex organizations may engage in more improvisation and consideration of multiple perspectives than strategically simple organizations and may therefore be expected to achieve higher levels of performance. Tests these propositions using data from a sample of wholesale distributors in three industries providing a range of product types, technical complexity and customer type. Findings – confirms that strategically complex organizations consider multiple perspectives in formulating strategy and produce superior customer-based performance. Compares their performance with that of simple, market-oriented organizations focused on customers and competitors; a group of organizations that focus on broad changes in the macro-environment; and a reactive group paying little attention to monitoring or managing any dimensions of the business environment. Summarizes the main characteristics of each group and discusses the decision processes and performance consequences associated with differing levels of strategic complexity. Originality/value – an exploratory study of the benefits and challenges of strategic complexity.Style: Research paperISSN: 0148-2963Reference: 35AA831

Keywords: Complexity theory, Decision making, Marketing strategy, Organizational performance