The Effect of Strategic Orientation on
the Structure of an Organization and the
Resulting Innovation Strategy
Dissertation Phase: ready for pilot
Committee:
Dr. Jeen S. Lim (E-Business)
Dr. Janet Hartley (BGSU, chair, Mgmt.)
Dr. James Pope OM
Dr. Thomas Sharkey (Intl. Business)
David Marion University of Toledo
Innovation
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Innovation Management Strategy has not been
clearly defined in the literature
Innovation has been stated as a way an
organization can grow its market share, revitalize
an existing product and even create a
competitive advantage
Innovation is typically studied in isolation to
itself or in combination with one other
construct
David Marion University of Toledo
Purpose for Study
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Define innovation more clearly
Portfolio method for measurement
Further development of three measures
Add more to organizational structure in
innovation research
Attempt to display the advantages of different
configurations
David Marion University of Toledo
Structure of Study
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This study will introduce the different functions
of the organization that affect the outcomes of
an innovation
The premise is that once the strategic
orientation of the organization is decided, the
functional orientations will align to create
innovations that support the strategic mission
David Marion University of Toledo
Overview of presentation
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Present the conceptual model
Present the different aspects of the organization
that contribute to product innovativeness
Present the theoretical basis for the study
Present the measures and hypotheses examples
Close with research methods and expected
contributions
David Marion University of Toledo
Conceptual Model
Control
Variables
Strategic
Orientation
Market
Orientation
Innovation
Management
Supply
Management
Orientation
Innovation
Management
Strategy
Manufacturing
Orientation
Product
Portfolio
Strategic Alignment
David Marion University of Toledo
Firm
Performance
Strategic Orientation and
Market Orientation
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Miles and Snow (1978) Defender, Prospector,
Analyzer, and Reactor; Venkatraman (1989)
Aggressiveness, Analysis, Defensiveness,
Futurity, Proactiveness, and Riskiness
Narver and Slater (1990) competitor orientation,
customer orientation and interfunctional
coordination; Kohli and Jaworski (1990)
David Marion University of Toledo
Supply Management Orientation
and Manufacturing Orientation
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Shin (et. al., 2000) introduced the orientation as a focus
on long-term supplier development, has not been
included in organizational structure.
Mavondo (1999) used the Defender orientation as a
representation of manufacturing orientation
Hausman (et. al., 2000) stated that it should be used as
leverage for competitive strategy
Boyer (1998) introduced competitive priority constructs
as representative of manufacturing strategy, they are
cost, quality, delivery, and flexibility
David Marion University of Toledo
Innovation Management Strategy
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Griffin and Page (1996) present a study of six
different innovation strategies in unison with
Miles and Snow’s (1978) strategic orientations
Ettlie and Subramaniam (2004) use eight case
studies with four types of innovation strategies
driven by market pull, technology push,
competition, or any combination
David Marion University of Toledo
Product Portfolio
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Portfolio management for product innovation
has surfaced as one of the most important
senior management functions (Cooper and
Kleinschmidt, 1996; Cooper et al, 2001)
The studies concerning product portfolios have
been mixed at best
David Marion University of Toledo
Theoretical Foundation
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The antecedents and consequences of
innovation such as strategy, structure, alignment
and financial outcomes
The foundation for this study will be based on
three accepted theories, Contingency Theory,
Core Competencies and Resource-Based View
David Marion University of Toledo
Contingency Theory
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This theory is based on the match or coalignment of an
organization that occurs with its environment on at
least two levels. The first level, consisting of the
structural features such as each subunit, should be
suited to the specific environment in which it exists.
The second level, is the differentiation and mode of
integration
Each business unit will perform a distinct function, yet
be integrated into the greater whole of the organization
David Marion University of Toledo
Core Competencies
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Through developing routines and dealing with
the changing contingencies, the organization will
develop effective skill sets and become more
proficient with different technologies.
Core competencies are defined as the collective
learning in the organization, especially how to
coordinate diverse production skills and
integrate multiple streams of technologies
David Marion University of Toledo
Resource-Based View Theory
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The RBV theory develops from two main
assumptions, that there is heterogeneity of
organizations, and that resources are immobile
The individualism of an organization is
determined by the choices made
The resources immobility is represented by the
organizations choices and access to resources
David Marion University of Toledo
Research Questions
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Research Question 1: Will the choice of a specific strategic
orientation define a certain level of (a) market orientation, (b)
supply management orientation, and (c) manufacturing
orientation?
Research Question 2: Will the drivers of the innovation
management strategy clearly define the organization’s degree of
product innovativeness?
Research Question 3: What organizational structure combinations
will perform the best?
David Marion University of Toledo
Strategic Orientation and
Market Orientation Measures
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Strategic orientation will use the measures from
Sabherwal and Chan’s (2001) study concerning
strategies in information systems
Narver (et. al., 2004) introduces proactive and
responsive market orientation in conjunction
with new product development
Hypothesis 1a: Strategic orientation will have a
positive effect on the level of market
orientation.
David Marion University of Toledo
Supply Management Orientation
and Manufacturing Orientation
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Shin (et. al., 2000) measures the management, buyer
and supplier relationships
Hypothesis 1b: Strategic orientation will have a
positive effect on the level of supply management
orientation.
manufacturing orientation will use Boyer’s (1998, 1999,
2000) measures from competitive priorities
Hypothesis 1c: Strategic orientation will have a
positive effect on the level of manufacturing
orientation.
David Marion University of Toledo
Innovation Management Strategy
and the Product Portfolio
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The innovation management strategy is expected to be
directed by the drivers and past experience of the
organization
The measurement of the innovation management
strategy will consist of the drivers that determine the
innovation strategy and the management of other
pertinent knowledge concerning innovations
The product portfolio will be measured according to
the amount of each of the five types of product
innovation developed
A respondent will be given 100 points to allocate
between each type of product innovation
David Marion University of Toledo
Strategic Alignment
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Strategic alignment will be the indirect result of
the different orientation’s alignment with the
strategy of the organization
Hypothesis 7a: Strategic alignment will have a
positive affect on the innovation management.
Hypothesis 7b: Strategic alignment will have a
positive affect on the firm performance.
David Marion University of Toledo
Control Variables
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Organizational size, gross sales, employees, age
and industry
Technology turbulence and market turbulence
will be used from Narver (et. al. 2004)
Hypothesis 10: An organization that is affected
by higher technological turbulence will be higher
in market orientation and lower in
manufacturing and supply management
orientation.
David Marion University of Toledo
Research Method
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Manufacturing Orientation, Innovation Management
Strategy and Strategic Alignment
Respondents will be project/program managers
responsible for all facets of NPD in various industries
Pilot study will be conducted using local organizations
After clarification from the small sample, move to large
sample survey; employ both mail and email
Final analysis will be conducted using both SPSS and
LISREL
David Marion University of Toledo
Expected Contributions
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Insight into the strategy, structure and resulting
innovations created within organizations.
Development of an Innovation Management
Strategy measure
Adoption of a Manufacturing Orientation
measure
Development of a stronger Supply Management
Orientation measure
Better understanding of economic implications
for an organization
David Marion University of Toledo
Thank You!
Dissertation Proposal Defense
David Marion University of Toledo