Strategic management results in greater organizational performance

Full Answer Section

    A third study, published in 2017, found that strategic planning is associated with lower levels of risk and uncertainty. The study also found that strategic planning is more effective in organizations with a well-defined strategic process and a strong commitment to strategic implementation. These studies suggest that strategic management can be a valuable tool for improving organizational performance. However, it is important to note that the effectiveness of strategic management can vary depending on the specific circumstances of the organization. Here are some of the factors that can influence the effectiveness of strategic management:

• The quality of the strategic plan: The strategic plan should be well-thought-out and should be based on a thorough analysis of the organization's internal and external environment.
• The commitment of top management: Top management must be committed to the strategic plan and must be willing to allocate resources to its implementation.
• The capabilities of the organization: The organization must have the capabilities to implement the strategic plan. This includes having the right people, skills, and resources.
• The external environment: The external environment can change, and the strategic plan must be flexible enough to adapt to these changes.

Overall, the research suggests that strategic management can be a valuable tool for improving organizational performance. However, it is important to note that the effectiveness of strategic management can vary depending on the specific circumstances of the organization.

Sample Solution

    Yes, there is a significant amount of research that suggests that strategic management results in greater organizational performance. A 2019 meta-analysis of 129 studies found that strategic planning has a positive, moderate, and significant impact on organizational performance. The study also found that the positive impact of strategic planning is strongest when performance is measured as effectiveness and when strategic planning is measured as formal strategic planning. Another study, published in 2018, found that strategic planning is associated with higher levels of innovation, profitability, and market share. The study also found that strategic planning is more effective in organizations with a strong top management team and a clear vision.