Impact of strategic leadership on strategic competitive advantage through strategic thinking and strategic planning: a bi-meditational research
Abstract
Confusion between strategic planning and strategic thinking in the context of strategic leadership and its effect on competitive advantage was the foremost rationale for this study to come into view. Thereby, the aim of this study was to examine the role of two mediating variables, i.e., strategic planning and strategic thinking in the impact of strategic leadership on competitive advantage. Scoping health care sector in Jordan resulted in three public hospitals agreed to participate in the study. Data were gathered using a questionnaire developed on the basis of literature review. A total of 1000 questionnaires were administered to hospitals. A total 521 questionnaires were returned with a response rate of 52.1%. The results pinpointed that strategic leadership significantly predicted strategic planning, strategic thinking and competitive advantage. the results also revealed that strategic planning and strategic thinking significantly and positively related to competitive advantage. accordingly, it was approved that strategic planning and strategic thinking mediated the effect of strategic leadership on competitive advantage. Despite that the influence of strategic thinking on competitive advantage was greater than the influence of strategic planning on competitive advantage. The study hold the perspective that both strategic planning and strategic thinking were essential in the context of strategic leadership, since strategies are developed by strategic thinking and operationalized via strategic planning.
Keyword : strategic leadership, strategic thinking, strategic planning, competitive advantage
How to Cite
Hunitie, M. (2018). Impact of strategic leadership on strategic competitive advantage through strategic thinking and strategic planning: a bi-meditational research. Business: Theory and Practice, 19, 322-330. https://doi.org/10.3846/btp.2018.32
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Hoe SL (2008) Issues and procedures in adopting structural equation modeling technique. Journal of applied quantitative methods 3 (1): 76-83.
Hooper D, Coughlan J, Mullen M (2008) Structural equation modelling: guidelines for determining model fit. Electronic Journal of Business Research Methods 6 (1): 53-60.
Hoskisson R, Hitt M, Ireland D, Harrison J (2012) Competing for advantage. UK: Cengage Learning.
Hughes R, Beatty K (2011) Becoming a strategic leader: your role in your organization’s enduring success. S.F.: Jossy-Bass, Wiley & Sons, Inc.
Johnson J, Lee RP, Saini A, Grohmann B (2003) Market-focused strategic flexibility: conceptual advances and an integrative model. Journal of the Academy of Marketing Science 31 (1): 74-89. https://doi.org/10.1177/0092070302238603
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Kathuria R, Partovi F, Greenhaus J (2010) Leadership practices, competitive priorities, and manufacturing group perfor- mance. International Journal of Operations & Production Management 30 (10): 1080-1105. https://doi.org/10.1108/01443571011082535
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Lado A, Boyd N, Wright P (1992) A competency-based model of sustainable competitive advantage: toward a conceptual integration. Journal of Management 18 (1): 77-91. https://doi.org/10.1177/014920639201800106
Mahdi O, Almsafir M (2014) The role of strategic leadership in building sustainable competitive advantage in the academic environment. Procedia-Social and Behavioral Sciences 129: 289-296. https://doi.org/10.1016/j.sbspro.2014.03.679
Mintzberg H (1994) The fall and rise of strategic planning. Har- vard business review 72 (1): 107-114.
Nadkarni S, Herrmann P (2010) CEO personality, strategic flexibility, and firm performance: the case of the Indian business process outsourcing industry. Academy of Mana- gement Journal 53 (5): 1050-1073. https://doi.org/10.5465/ amj.2010.54533196
Podolny J, Khurana R, Hill-Popper M (2005) Revisiting the meaning of leadership. In: Staw B, Kramer R (Eds) Research in Organizational Behavior. Greenwich, CT: JAI Press, 1-36.
Rush S (2011) The leadership in actions series: on strategic lea- dership. CCL Press: Center for Creative Leadership.
Schermelleh-Engel K, Moosbrugger H, Müller H (2003) Evalua- ting the fit of structural equation models: tests of significance and descriptive goodness-of-fit measures. Methods of psycho- logical research online 8 (2): 23-74.
Shimizu K, Hitt M (2004) Strategic flexibility: organizational preparedness to reverse ineffective strategic decisions. The Academy of Management Executive 18 (4): 44-59.
Steiner G (2010) Strategic planning: what every managers should know. The Free Press, Simon and Schuster Inc.
Stacciarini TSG, Pace AE (2017) Confirmatory factor analysis of the Appraisal of Self-Care Agency Scale – Revised. The Revista Latino-Americana de Enfermagem 25. https://doi.org/10.1590/1518-8345.1378.2856
Vera D, Crossan M (2004) Strategic leadership and organizational learning. Academy of Management Review 29 (2): 222-240. https://doi.org/10.5465/amr.2004.12736080
Zahra S, Hayton C, Neubaum D, Dibrell C, Craig J (2008) Culture of family commitment and strategic flexibility: the moderating effect of stewardship. Entrepreneurship Theory and Practi- ce 32 (6): 1035-1054. https://doi.org/10.1111/j.1540-6520. 2008.00271.x
Zhou K, Brown J, Dev C (2009) Market orientation, competitive advantage, and performance: a demand-based perspective. Journal of business research 62 (11): 1063-1070. https:// doi.org/10.1016/j.jbusres.2008.10.001
Avolio B (2007) Promoting more integrative strategies for lea- dership theory-building. American psychologist 62 (1): 25. https://doi.org/10.1037/0003-066X.62.1.25
Betz F (2016) Strategic thinking: a comprehensive guide. UK: Emerald Group Publishing Limited. https://doi.org/10.1108/9781785604669
Bhat SA, Darzi MA, Parrey SH (2018) Antecedents of customer loyalty in banking sector: a mediational study. Vikalpa 43 (2): 92-105. https://doi.org/10.1177/0256090918774697
Boal K, Hooijberg R (2000) Strategic leadership research: moving on. The Leadership Quarterly 11 (4): 515-549. https://doi.org/10.1016/S1048-9843(00)00057-6
Bourgeois L, Brodwin D (1984) Strategic implementation: five approaches to an elusive phenomenon. Strategic Management Journal 5 (3): 241-264. https://doi.org/10.1002/smj.4250050305
Boyd BK, Reuning-Elliott E (1998) A measurement model of strategic planning. Strategic Management Journal 19 (2): 181-192. https://doi.org/10.1002/(SICI)1097-0266(199802)19:2<181::AID-SMJ945>3.0.CO;2-Z
Boyer K, Verma R (2000) Multiple raters in survey-based operations management research: a review and tutorial. Production and Operations Management 9 (2): 128-140. https://doi. org/10.1111/j.1937-5956.2000.tb00329.x
Combe I, Greenley G (2004) Capabilities for strategic flexibility: a cognitive content framework. Emerald Group Publishing Limited.
Cronbach L (1951) Coefficient alpha and the internal structure of tests. Psychometrika 16 (3): 297-334. https://doi.org/10.1007/ BF02310555
Davies, B. (2004) Developing the strategically focused school, School Leadership & Management 24 (1): 11-27. https://doi.org/10.1080/1363243042000172796
Davies B, Davies B (2004) Strategic leadership. School Leadership & Management 24 (1): 29-38. https://doi.org/10.1080/1363243042000172804
Deeboonmee W, Ariratana W (2014) Relationship between stra- tegic leadership and school Effectiveness. Procedia Social and Behavioral Sciences 112: 982-985. https://doi.org/10.1016/j.sbspro.2014.01.1258
DeGeus, A (1988) Planning as learning. Harvard Business Review 66 (2): 70-74.
du Plessis A, Marriott J, Manichith P (2016) Key capabilities for strategic leaders in Lao commercial banking sector to maxi- mize competitive advantage. Journal of Community Positive Practices 16 (1): 56.
Ebener D, Smith F (2015) Strategic planning: an interactive pro- cess for leaders. New Jersey: Paulist Press.
Farrell AM (2010) Insufficient discriminant validity: a comment on Bove, Pervan, Beatty, and Shiu (2009). Journal of Business Research 63 (3): 324-327. https://doi.org/10.1016/j.jbusres.2009.05.003
Fornell C, Larcker D (1981) Evaluating structural equation mo- dels with unobservable variables and measurement error. Journal of Marketing Research 18 (1): 39-50. https://doi.org/ 10.2307/3151312
Gratton L, Truss C (2003) The three-dimensional people strategy: putting human resources policies into action. The Academy of
Management Executive 17 (3): 74-86. https://doi.org/10.5465/ ame.2003.10954760
Grawe S, Chen H, Daugherty P (2009) The relationship between strategic orientation, service innovation, and performance. International Journal of Physical Distribu- tion & Logistics Management 39 (4): 282-300. https://doi. org/10.1108/09600030910962249
Halal W, Taylor K (1999) Twenty-first century economics: perspectives of socioeconomics for a changing world. New York, NY: St Martin’s Press.
Heracleous L (1998) Strategic thinking or strategic plan- ning? Long Range Planning 31 (3): 481-487. https://doi.org/10.1016/S0024-6301(98)80015-0
Hili P, Gani M, Hamzah N, Rahman Z (2017) Effect of human capital and leadership on institutions performance and com- petitive advantages. International Journal of Management & Social Sciences 7 (3): 479-488. https://doi.org/10.21013/jmss.v7.n3.p9
Hitt M, Duane R (2002) The essence of strategic leadership: managing human and social capital. Journal of Leadership & Organizational Studies 9 (1): 3-14. https://doi.org/10.1177/107179190200900101
Hitt M, Duane R (2002) The essence of strategic leadership: managing human and social capital. Journal of Leadership & Organizational Studies 9 (1): 3-14. https://doi.org/10.1177/107179190200900101
Hitt M, Keats B, DeMarie S (1998) Navigating in the new competitive landscape: building strategic flexibility and competitive advantage in the 21st century. The academy of Management Executive 12 (4): 22-42. https://doi.org/10.5465/ ame.1998.1333922
Hoe SL (2008) Issues and procedures in adopting structural equation modeling technique. Journal of applied quantitative methods 3 (1): 76-83.
Hooper D, Coughlan J, Mullen M (2008) Structural equation modelling: guidelines for determining model fit. Electronic Journal of Business Research Methods 6 (1): 53-60.
Hoskisson R, Hitt M, Ireland D, Harrison J (2012) Competing for advantage. UK: Cengage Learning.
Hughes R, Beatty K (2011) Becoming a strategic leader: your role in your organization’s enduring success. S.F.: Jossy-Bass, Wiley & Sons, Inc.
Johnson J, Lee RP, Saini A, Grohmann B (2003) Market-focused strategic flexibility: conceptual advances and an integrative model. Journal of the Academy of Marketing Science 31 (1): 74-89. https://doi.org/10.1177/0092070302238603
Julian O (2013) Relationship between strategic planning and or- ganization’s performance in non-governmental organizations (NGOs): a case of ACTIONAID, Kenya. Master research, University of Nairobi, Kenya.
Kathuria R, Partovi F, Greenhaus J (2010) Leadership practices, competitive priorities, and manufacturing group perfor- mance. International Journal of Operations & Production Management 30 (10): 1080-1105. https://doi.org/10.1108/01443571011082535
Kumar V, Jones E, Venkatesan R, Leone R (2011) Is market orientation a source of sustainable competitive advantage or simply the cost of competing? Journal of Marketing 75 (1): 16-30. https://doi.org/10.1509/jmkg.75.1.16
Lado A, Boyd N, Wright P (1992) A competency-based model of sustainable competitive advantage: toward a conceptual integration. Journal of Management 18 (1): 77-91. https://doi.org/10.1177/014920639201800106
Mahdi O, Almsafir M (2014) The role of strategic leadership in building sustainable competitive advantage in the academic environment. Procedia-Social and Behavioral Sciences 129: 289-296. https://doi.org/10.1016/j.sbspro.2014.03.679
Mintzberg H (1994) The fall and rise of strategic planning. Har- vard business review 72 (1): 107-114.
Nadkarni S, Herrmann P (2010) CEO personality, strategic flexibility, and firm performance: the case of the Indian business process outsourcing industry. Academy of Mana- gement Journal 53 (5): 1050-1073. https://doi.org/10.5465/ amj.2010.54533196
Podolny J, Khurana R, Hill-Popper M (2005) Revisiting the meaning of leadership. In: Staw B, Kramer R (Eds) Research in Organizational Behavior. Greenwich, CT: JAI Press, 1-36.
Rush S (2011) The leadership in actions series: on strategic lea- dership. CCL Press: Center for Creative Leadership.
Schermelleh-Engel K, Moosbrugger H, Müller H (2003) Evalua- ting the fit of structural equation models: tests of significance and descriptive goodness-of-fit measures. Methods of psycho- logical research online 8 (2): 23-74.
Shimizu K, Hitt M (2004) Strategic flexibility: organizational preparedness to reverse ineffective strategic decisions. The Academy of Management Executive 18 (4): 44-59.
Steiner G (2010) Strategic planning: what every managers should know. The Free Press, Simon and Schuster Inc.
Stacciarini TSG, Pace AE (2017) Confirmatory factor analysis of the Appraisal of Self-Care Agency Scale – Revised. The Revista Latino-Americana de Enfermagem 25. https://doi.org/10.1590/1518-8345.1378.2856
Vera D, Crossan M (2004) Strategic leadership and organizational learning. Academy of Management Review 29 (2): 222-240. https://doi.org/10.5465/amr.2004.12736080
Zahra S, Hayton C, Neubaum D, Dibrell C, Craig J (2008) Culture of family commitment and strategic flexibility: the moderating effect of stewardship. Entrepreneurship Theory and Practi- ce 32 (6): 1035-1054. https://doi.org/10.1111/j.1540-6520. 2008.00271.x
Zhou K, Brown J, Dev C (2009) Market orientation, competitive advantage, and performance: a demand-based perspective. Journal of business research 62 (11): 1063-1070. https:// doi.org/10.1016/j.jbusres.2008.10.001