How Short-Term Orientation Dominates Western Businesses and the Challenges They Face—An Example Using Germany, the UK, and the USA
The current study investigates and establishes the factors that lead to short-term orientation strategies in western organisations. Moreover, this study used questionnaire-based surveys to assess the relationship between these factors and what it would take for the organisation to move to a long-ter...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-01-01
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| Series: | Administrative Sciences |
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| Online Access: | https://www.mdpi.com/2076-3387/13/1/25 |
| _version_ | 1797431083885658112 |
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| author | Michael Gerlich |
| author_facet | Michael Gerlich |
| author_sort | Michael Gerlich |
| collection | DOAJ |
| description | The current study investigates and establishes the factors that lead to short-term orientation strategies in western organisations. Moreover, this study used questionnaire-based surveys to assess the relationship between these factors and what it would take for the organisation to move to a long-term orientation strategy. At the start of the study, it was evident that the annual bonus system is a key reason for prioritising a short-term orientation strategy. The sample was composed of 300 companies of different sizes from different western countries. Furthermore, the general consensus within these companies was that most managers knew that long-term orientation was necessary; however, either their superiors/shareholders/supervisory board only reward short-term results, or the managers and stakeholders prefer short-term goals for evaluations because it is challenging to transform a long-term strategy into multiple short-term strategies and goals. At the end of the study, a basic framework has been suggested to be used as guidelines for any company moving from short-term to long-term orientation strategies. |
| first_indexed | 2024-03-09T09:37:52Z |
| format | Article |
| id | doaj.art-80b4c0b3e7234f54b3fc881dc98eda76 |
| institution | Directory Open Access Journal |
| issn | 2076-3387 |
| language | English |
| last_indexed | 2024-03-09T09:37:52Z |
| publishDate | 2023-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Administrative Sciences |
| spelling | doaj.art-80b4c0b3e7234f54b3fc881dc98eda762023-12-02T01:15:43ZengMDPI AGAdministrative Sciences2076-33872023-01-011312510.3390/admsci13010025How Short-Term Orientation Dominates Western Businesses and the Challenges They Face—An Example Using Germany, the UK, and the USAMichael Gerlich0Department of Management, SBS Swiss Business School, 8302 Kloten, Zurich, SwitzerlandThe current study investigates and establishes the factors that lead to short-term orientation strategies in western organisations. Moreover, this study used questionnaire-based surveys to assess the relationship between these factors and what it would take for the organisation to move to a long-term orientation strategy. At the start of the study, it was evident that the annual bonus system is a key reason for prioritising a short-term orientation strategy. The sample was composed of 300 companies of different sizes from different western countries. Furthermore, the general consensus within these companies was that most managers knew that long-term orientation was necessary; however, either their superiors/shareholders/supervisory board only reward short-term results, or the managers and stakeholders prefer short-term goals for evaluations because it is challenging to transform a long-term strategy into multiple short-term strategies and goals. At the end of the study, a basic framework has been suggested to be used as guidelines for any company moving from short-term to long-term orientation strategies.https://www.mdpi.com/2076-3387/13/1/25short-term orientationbusiness developmentbonus systemchangelong-term orientationstrategy |
| spellingShingle | Michael Gerlich How Short-Term Orientation Dominates Western Businesses and the Challenges They Face—An Example Using Germany, the UK, and the USA Administrative Sciences short-term orientation business development bonus system change long-term orientation strategy |
| title | How Short-Term Orientation Dominates Western Businesses and the Challenges They Face—An Example Using Germany, the UK, and the USA |
| title_full | How Short-Term Orientation Dominates Western Businesses and the Challenges They Face—An Example Using Germany, the UK, and the USA |
| title_fullStr | How Short-Term Orientation Dominates Western Businesses and the Challenges They Face—An Example Using Germany, the UK, and the USA |
| title_full_unstemmed | How Short-Term Orientation Dominates Western Businesses and the Challenges They Face—An Example Using Germany, the UK, and the USA |
| title_short | How Short-Term Orientation Dominates Western Businesses and the Challenges They Face—An Example Using Germany, the UK, and the USA |
| title_sort | how short term orientation dominates western businesses and the challenges they face an example using germany the uk and the usa |
| topic | short-term orientation business development bonus system change long-term orientation strategy |
| url | https://www.mdpi.com/2076-3387/13/1/25 |
| work_keys_str_mv | AT michaelgerlich howshorttermorientationdominateswesternbusinessesandthechallengestheyfaceanexampleusinggermanytheukandtheusa |