Title: The Influence of Strategic Control, Strategy Orientation, and Business Environment on Competitive Strategy and Its Effect to Business Performance
Abstract: INTRODUCTIONThe dynamic changes of strategies within the Indonesian space technology development reasons an adaptive strategy action is necessary. This has to be taken account by companies who are users, as with it they will have a precise strategy to compete with. This adaptive strategy action can be a strategic control, such as controlling the premise that function as the company's basic strategic plan that proceeds to commercialize Indonesian space technology. As commonly known, commercialization of Indonesian space technology is still very low. This is caused by the low level of technology absorption (Source: Global Technology Information Report, 2015). The low level of technology absorption causes research and development activities to be low as well therefore its affects in low business performance too (Mizik and Jacobson, 2003). Such opinion is also supported by Xuenan Ju, et al. (2015).In the effort to support the company's business performance can be measured from the strategic control process (Hoskisson and Hitt, 1982; Geringer and Hebert, 1988; Strempek, 1997; Lazonick and Prencipe, 2005; Ndegwa, 2013; Kisia, et al 2014; Maroa and Muturi, 2015), strategy orientation selection (Tan and Litschert, 1994; Wright, et al, 1995; Avlonitis and Gounaris, 1997; Strempek, 1997; Pelham, 1999; Ge and Ding, 2005; Slater, et al, 2006; Grekoval, 2010; Hemati, et al, 2013, Nakola, et al, 2015), business environment (Chand and Fraser, 2006; Zeng, et al, 2010; Awino and Kariuki, 2012; Ridwan Ibrahim and Ina Primiana, 2015; and Prajogo, 2016), and the competitive strategy appointed by the company (Tan and Litschert, 1994; Kotha and Paul, 1999; Pelham, 2009; and Awino and Kariuki, 2012).In its connection with the dynamic changes of the environment, the strategic control has an important role in controlling mechanism that is able to make the company competes. Meanwhile, it also takes a significant role in processing the indecisive environment and increasing performance (Tan and Listchert, 1994; Luo and Peng, 1999; Hitt, et al., 1982; Covin and Slevin, 1989; Ramaswamy, et al., 1994; Desarbo, et al., 2005). In its relation to business environment, the company's main ability to read its environment and able to quickly adapt to changes will be able to generate the right competitive strategy (Courtney and Viguerie, 1997; Slotegraaf and Dickson, 2004; Wijbenga and Witteloostuijn, 2007; and Awino and Kariuki, 2012).Evaluating the cause of the low level of business performance from companies who are users of Indonesian space technology requires empirical analysis. To provide a foundation for that analysis, this article develops theory and propositions concerning the relation among strategic control, strategy orientation, and business environment, the relation of strategic control, strategy orientation, and business environment on formulating competitive strategy, and the relation between competitive strategy and business performance. This article also requires synthesizing several literatures; the article begins with an organizing framework and a brief overview to knowing the relation among the variables.THE RELATION OF STRATEGIC CONTROL, STRATEGY ORIENTATION, AND BUSINESS ENVIRONMENTAccording to Pearce and Robinson (2007), the strategic control is a management effort to detect an undergoing strategy, detect problems or chances under assumptions, and generating necessary adaptations. The control towards the strategy is a critical concept to a successful management and performance achievement (Geringer and Hebert, 1988).According to Atkinson (1990) the strategy orientation is very crucial for companies to reach their performance achievement. Slater, et al (2006) explained strategy orientation define the whole strategy, yet also it details the contents and implementations of the strategy in order to reach it fully.The business environment defines the relevant information route in sets the purpose and decision-making through managerial perception (Selznick, 1948). …
Publication Year: 2016
Publication Date: 2016-01-06
Language: en
Type: article
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Cited By Count: 4
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