Vasudevan Ramanujam

Measurement of Business Performance in Strategy Research: A Comparison of Approaches

A two-dimensional classificatory scheme highlighting ten different approaches to the measurement of business performance in strategy research is developed. The first dimension concerns the use of financial versus broader operational criteria, while the second focuses on two alternate data sources (primary versus secondary). The scheme permits the classification of an exhaustive coverage of measurement approaches and is useful for discussing their relative merits and demerits. Implications for operationalizing business performance in future strategy research are discussed.

Measurement of Business Economic Performance: An Examination of Method Convergence

Strategic management researchers have measured business economic performance (BEP) through either perceptual assessments of senior executives or secondary data sources, but few explicitly evaluate the degree of convergence across methods. In an effort to examine method convergence, we collected data on three dimensions-sales growth, net income growth, and profitability (ROI) using both methods. Although convergent and discriminant validity were achieved using Campbell and Fiskes Multi Trait, Multi Method (MTMM) and Confiratory Factor Analysis (CFA), the approaches yielded different insights. The advantages of CFA over MTMM is demonstrated with implications for strategy research.

Multi-Objective Assessment of Effectiveness of Strategic Planning: A Discriminant Analysis Approach

Drawing on the relevant literature, this study develops seven key dimensions of planning systems, five reflecting their design aspects and two tapping the organizational context of planning. Discri...

Planning system characteristics and planning effectiveness

The nature of the multivariate relationship between six characteristics of planning systems and three different conceptualizations of planning effectiveness is examined using canonical correlation analysis. The analysis indicates that the organizational context of planning—captured here by two key characteristics—resistance to planning and resources provided for planning—is the dominant impact on planning system effectiveness, broadly construed. While individual design elements of the planning system such as use of techniques and external orientation do influence effectiveness, the contextual dimensions appear to be overriding. Implications for further research on planning systems and directions for future extensions of this study are discussed.

Diversification and Performance: A Reexamination using A New Two-Dimensional Conceptualization of Diversity in Firms

The article discusses a study which examines the linkage between diversity and performance using a two-dimensional conceptualization of diversity in business enterprises. Methods for measuring dive...

Planning system success: a conceptualization operational model

Research on strategic planning has been handicapped by lack of an appropriate operationalizing scheme for measuring the success of planning systems. In this paper, an operational model for measuring planning system success is developed in terms of two interrelated dimensions---improvements in the capabilities of the planning system and extent of fulfillment of key planning objectives. Multiple items reflecting these dimensions are proposed. Construct validity of the two dimensions are evaluated by applying Joreskogs analysis of covariance structures approach on data on the planning practices of 202 strategic planning units. Validated measurement schemes for the two model dimensions are offered for use in future research efforts on strategic planning effectiveness.

Improving the strategy-innovation link

In spite of the tremendous impact that new technology has had on every aspect of business operations, we have yet to develop a satisfactory way of incorporating innovation in our strategic thinking processes. However, we are making progress. A further step in our understanding is provided in this article by Gerhard Mensch, the recent winner of the Humboldt prize for his creative work in economics, and Vasudevan Ramanujam. They collaborate in developing a model that links strategy and innovation by relating innovation activities to strategic goals of the firm and the external pressures that are perceived by management.

Objectives-based evaluation of strategic planning systems

A comparative study of more effective vs less effective planning systems is reported here, where effectiveness is treated in terms of the fulfillment of six key planning objectives. Based on data on the strategic planning systems and processes of over 200 North American companies, key systems design and contextual factors associated with effective planning are identified. It was found that dissatisfaction with formal strategic planning is not as widespread among practicing managers as is widely alleged. The degree of fulfillment of key planning objectives varies widely not only from company to company but also from objective to objective. Overall, the creativity and control orientation of the system and its level of functional integration were found to be the principal design factors contributing to the effectiveness of a strategic planning system.

Sources of personal computing problems

The rapid growth of personal computing in organizations has given rise to numerous problems of information management. Broadly these problems encompass the categories of evolvability and integration of systems, cost of computing, data integrity and security, and MIS department-user department relationships. A framework is proposed linking these problem categories and three organizational factors, viz., level of use of personal computing, extent of control over personal computing, and degree of support for personal computing. Correlational, regression, and moderated regression analysis techniques are employed to test a number of hypotheses relating the organizational factors and problems categories. Results indicate that control over personal computing is the strongest predictor of the extent of personal computing problems encountered and that, while various commonly used support measures are helpful in mitigating MIS-user relationship problems, they do not seem to be effective in dealing with other types of personal computing problems. Control is found to exert both a direct and an interactive effect on problem intensity. Implications of these findings for managing personal computing in organizations are noted.