STRATEGY IMPLEMENTATION: THE EFECT OF DECENTRALIZATION, PARTICIPATION IN BUDGET SETTING, AND MANAGERS' ATTITUDE ON PERFORMANCE
Theperformance of a business unit, to a large extent, is determined by the quality of its strategy and how well the strategy is implemented This study examines the effect of strategy implementation on performance. In particular, it investigates the extent to which the fit between two crucial strateg...
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| Format: | Article |
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[Yogyakarta] : Universitas Gadjah Mada
2010
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| _version_ | 1826033112097751040 |
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| author | Perpustakaan UGM, i-lib |
| author_facet | Perpustakaan UGM, i-lib |
| author_sort | Perpustakaan UGM, i-lib |
| collection | UGM |
| description | Theperformance of a business unit, to a large extent, is determined by the quality of its
strategy and how well the strategy is implemented This study examines the effect of
strategy implementation on performance. In particular, it investigates the extent to which
the fit between two crucial strategic supporting systems, namely decentralization and
budget system, and managers' attitude with the strategy of SBU on performance. It is
argued that the more consistent the level of decentralization, degree of participation in the
budget system and managers' attitude with the SBU strategies, the higher the performance
will be, and vice versa. Unlike most prior studies, the hypothesis was tested by adopting
the system of fit approach. Responses from 75 divisional managers of 75 diversified
companies are analyzed The results show that managers pursuing a strategy of
differentiation (cost leadership) report high performance when they worked in highly (less)
decentralized structures, are given more (less) opportunity to participate in the budget
process, and had strongly positive attitude toward their jobs and their firms. These
findings are consistent with the basic premise of strategy implementation that different
strategies should be supported with different configuration of organizational structure and
process to achieve optimal results. ,
Keywords: strategy implementation, decentralization, participation, attitude, system offit. |
| first_indexed | 2024-03-13T19:05:01Z |
| format | Article |
| id | oai:generic.eprints.org:27850 |
| institution | Universiti Gadjah Mada |
| last_indexed | 2024-03-13T19:05:01Z |
| publishDate | 2010 |
| publisher | [Yogyakarta] : Universitas Gadjah Mada |
| record_format | dspace |
| spelling | oai:generic.eprints.org:278502014-06-18T00:24:13Z https://repository.ugm.ac.id/27850/ STRATEGY IMPLEMENTATION: THE EFECT OF DECENTRALIZATION, PARTICIPATION IN BUDGET SETTING, AND MANAGERS' ATTITUDE ON PERFORMANCE Perpustakaan UGM, i-lib Jurnal i-lib UGM Theperformance of a business unit, to a large extent, is determined by the quality of its strategy and how well the strategy is implemented This study examines the effect of strategy implementation on performance. In particular, it investigates the extent to which the fit between two crucial strategic supporting systems, namely decentralization and budget system, and managers' attitude with the strategy of SBU on performance. It is argued that the more consistent the level of decentralization, degree of participation in the budget system and managers' attitude with the SBU strategies, the higher the performance will be, and vice versa. Unlike most prior studies, the hypothesis was tested by adopting the system of fit approach. Responses from 75 divisional managers of 75 diversified companies are analyzed The results show that managers pursuing a strategy of differentiation (cost leadership) report high performance when they worked in highly (less) decentralized structures, are given more (less) opportunity to participate in the budget process, and had strongly positive attitude toward their jobs and their firms. These findings are consistent with the basic premise of strategy implementation that different strategies should be supported with different configuration of organizational structure and process to achieve optimal results. , Keywords: strategy implementation, decentralization, participation, attitude, system offit. [Yogyakarta] : Universitas Gadjah Mada 2010 Article NonPeerReviewed Perpustakaan UGM, i-lib (2010) STRATEGY IMPLEMENTATION: THE EFECT OF DECENTRALIZATION, PARTICIPATION IN BUDGET SETTING, AND MANAGERS' ATTITUDE ON PERFORMANCE. Jurnal i-lib UGM. http://i-lib.ugm.ac.id/jurnal/download.php?dataId=10913 |
| spellingShingle | Jurnal i-lib UGM Perpustakaan UGM, i-lib STRATEGY IMPLEMENTATION: THE EFECT OF DECENTRALIZATION, PARTICIPATION IN BUDGET SETTING, AND MANAGERS' ATTITUDE ON PERFORMANCE |
| title | STRATEGY IMPLEMENTATION: THE EFECT OF DECENTRALIZATION, PARTICIPATION IN BUDGET SETTING, AND MANAGERS' ATTITUDE ON PERFORMANCE |
| title_full | STRATEGY IMPLEMENTATION: THE EFECT OF DECENTRALIZATION, PARTICIPATION IN BUDGET SETTING, AND MANAGERS' ATTITUDE ON PERFORMANCE |
| title_fullStr | STRATEGY IMPLEMENTATION: THE EFECT OF DECENTRALIZATION, PARTICIPATION IN BUDGET SETTING, AND MANAGERS' ATTITUDE ON PERFORMANCE |
| title_full_unstemmed | STRATEGY IMPLEMENTATION: THE EFECT OF DECENTRALIZATION, PARTICIPATION IN BUDGET SETTING, AND MANAGERS' ATTITUDE ON PERFORMANCE |
| title_short | STRATEGY IMPLEMENTATION: THE EFECT OF DECENTRALIZATION, PARTICIPATION IN BUDGET SETTING, AND MANAGERS' ATTITUDE ON PERFORMANCE |
| title_sort | strategy implementation the efect of decentralization participation in budget setting and managers attitude on performance |
| topic | Jurnal i-lib UGM |
| work_keys_str_mv | AT perpustakaanugmilib strategyimplementationtheefectofdecentralizationparticipationinbudgetsettingandmanagersattitudeonperformance |