• Title/Summary/Keyword: Strategic Fit

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The Effect of Strategic Fit and Cooperative Relationships on the Small Suppliers' Performance (전략적 적합성 및 협력관계가 협력기업의 성과에 미치는 영향: 삼성전자 협력사를 대상으로)

  • Lee, Jangwoo;Kim, Minjae
    • The Journal of Small Business Innovation
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    • v.19 no.3
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    • pp.57-74
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    • 2016
  • This paper analyzes the role of strategic fit, cooperation, and performance in small-sized subpart suppliers' interactions with large businesses. For this purpose, this paper analyzes survey data from 90 first-tier suppliers of Samsung Electronics and evaluates how strategic fit and cooperative relationships affect their performance. Empirical analysis suggests that strategic fit positively affects small companies' business and innovation performance. This finding aligns with theories arguing for strategies that accommodate specific business environments. In addition, strategic fit is crucial for innovativeness of SMEs (Small and Medium-sized Enterprises). With regard to forming relationships with large companies, findings also show that high quality technological and personnel cooperation boosts subpart suppliers' productivity and efficiency as notably reflected in SMEs' business performance. Moreover, such cooperation between small and large companies reinforces the benefits associated with strategic fit and innovation. This means that if the business environment of small-sized subpart suppliers is uncertain, harnessing differentiated strategies and pursuing collaborations with prime companies will produce innovative outcomes (e.g., increased patent publications). On the other hand, when degree of uncertainty is small, pursuing cost leadership strategies and collaborating with prime companies in areas, such as technology and personnel, will help small-sized subpart suppliers produce innovative outcomes. Based on these findings, this paper argues that choosing the right competitive strategy for a specific business context is intrinsically tied to (1) augmenting technological and human collaborations with prime companies, (2) improving the quality of these interactions, and (3) generating competitiveness among small subpart suppliers. Both competition and cooperation are necessary for strengthening the competitiveness of small companies.

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A Study on the Modeling of Individual-Organization Fitness Theory and Its Strategic Application for Employee Selection and Retention (개인-조직 적합도의 확장모델수립 및 종업원 선발과 유지에의 전략적 활용)

  • 이광희;이욱기
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.23 no.58
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    • pp.119-128
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    • 2000
  • The purpose of this study was to verify the determinants of person-organization(P-O) fit and its effects on job satisfaction and turnover intention. As a result of empirical survey, value congruence, job choice decision and similar occupation are confirmed as factors that affect on P-O Fit. And the effect of P-O fit on job satisfaction and turnover intention was significant. This findings indicated that P-O fit model can be used for organization to improve employee performance. Some limitations of this study and strategic application of P-O fit model for employee selection and retention were also discussed.

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The Effects of Strategic Role of IS and Characteristics of ISP on the Performance of ISP (정보시스템의 전략적 역할과 계획수립 특성이 계획수립 성과에 미치는 영향)

  • Kim, Joon-Suk;Sung, Kyung-Chang
    • Asia pacific journal of information systems
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    • v.7 no.2
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    • pp.51-75
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    • 1997
  • The purpose of this study is to analyze the effects of strategic roles of IS and characteristics of ISP on the performance of ISP in view of contingency theory. In particular, this study is to find out whether there is a fit between two contingent variables. To evaluate the effects of two independent variables on the dependent variable empirically, a field research method using questionnaires with depth interview was employed. Findings of the field study are as follows: First, the main effect of strategic roles of IS on performance of ISP is found to be significant. This implies that the higher the strategic importance of IS, the better the performance of ISP expected. Second, the effect of characteristics of ISP on the dependent variable is also found to be significant. Organizations which recognize IT as an important competitive weapon for their business, and adopt Technological and Organizational approaches in ISP, have shown to obtain excellent results. Third, the interaction effect of two contingent variables is not found. There is no evidence for a fit between the strategic roles of IS and the characteristics of ISP. This shows that the differences of ISP performance are to be explained by only independent effect of two contingent variables.

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Research on Technology, Process, and Strategic Fit of ICT Based Service Model (ICT 기반 융합 서비스 모델의 기술, 프로세스, 전략적 적합 연구)

  • Han, Hyun-Soo;Park, Keun-Young
    • Journal of Information Technology Applications and Management
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    • v.21 no.4
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    • pp.225-245
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    • 2014
  • ICT based convergence application is one of the most prevalent industrial issue these days. Despite of criticalness and potential economic opportunities of the ICT based convergence, theoretical research to analyze the feasibility and estimate the economic impact of the application is rather limited. This paper is intended to fill this research gap. In this respect, we develop theoretical framework to quantitatively estimate the differential benefits of convergent applications, which necessarily include underling ICT technology's contribution attributes extractions, and resulting value increments engendered from user's process effectiveness when ICT based service application is adopted. The research model to assess the differential value of the ICT based service application is developed, grounded on theoretical framework of TPC (Technology-to-performance chain) and contingency fit theories. Scenario based survey method is adopted, and SmartPLS 2.0. is used for statistical analysis of the structural equation model using 312 questionnaire. Valid statistical results are presented to provide useful insight.

The Strategic Alignment between Service Innovation Strategy and Business Strategy: The Empirical Investigation and Implications for Firm Performance (비즈니스 전략과 서비스혁신 전략의 전략적 적합성에 대한 연구: 실증적 검증과 기업성과의 의미)

  • Ryu, Hyun-Sun;Lee, Jae-Nam
    • Knowledge Management Research
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    • v.13 no.5
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    • pp.113-137
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    • 2012
  • Since service innovation is considered as a new way to gain an advantage in a highly competitive environment, it is imperative for companies to align their service innovation strategy with their business strategy in order to achieve better firm performance. Accordingly, a critical challenge facing firms is how to effectively organize and manage a well-planned service innovation strategy in accordance with the direction of their business strategy. Firms with a good fit between business strategy (i.e., cost leadership, innovative differentiation, and marketing differentiation strategies) and service innovation strategy (service creation-focused, service delivery-focused, and client interface-focused strategies) are expected to have better firm performance than those without such a fit. Based on empirical data from 209 service firms in South Korea, this study aims first to investigate whether a certain service innovation strategy is more effective than others within a particular business strategy. We then examine whether their effective alignment positively affects firm performance. The empirical evidence indicates that the alignment of service innovation strategy with business strategy significantly influences firm performance. The adoption of service innovation strategy was found to have positive effects on firm performance with innovative differentiation and marketing differentiation strategies and negative effects with cost leadership strategy. Lastly, we discuss our study's implications for further research and practice.

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A Study on the Success Factors of Partnership in SCM (SCM에서 파트너십의 성공결정요인에 관한 연구)

  • So, Soon-Hoo;Ryu, Il
    • The Journal of Society for e-Business Studies
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    • v.9 no.3
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    • pp.1-16
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    • 2004
  • The purpose of this study is to explore the nature of supply chain partnership, and to find the factors influencing the supply chain partnership success. For this, relationship commitment and trust were used as the basic components of the supply chain partnership. Also we identified strategic fit, interdependence, compatibility, and communication as determinants of supply chain partnership. Based on the statistical analysis of the sample of Korean corporations, it was found that relationship commitment and trust were shown to be significant factors influencing the supply chain partnership success. In addition, the findings reveal that strategic fit, interdependence, compatibility, and communication will facilitate supply chain partnership. More specifically, strategic fit and interdependence have a significant positive influence on relationship commitment. Also, compatibility and communication have a significant positive influence on trust. There result, in short, supported the importance of supply chain partnership for the successful SCM.

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Partnership between Korean Apparel Manufacturers and Fabric Suppliers, and Performance of the Korean Apparel Manufacturer (의류 제조업체와 원단공급업체의 파트너십과 의류 제조업체의 성과와의 관계)

  • Jang, Se-Yoon;Lee, Yu-Ri
    • Journal of the Korean Society of Clothing and Textiles
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    • v.30 no.1 s.149
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    • pp.38-47
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    • 2006
  • As apparel manufacturers and fabric suppliers are positioned in the middle of the apparel supply chain, these supply chain members build up a partnership to establish a win-win mutual relationship and to gam global competition. This study aimed to provide useful suggestions in setting up operational strategies by investigating the current state of a partnership between apparel manufactures and fabric suppliers. Partnership variables were included as: cooperative attitude, information sharing, interdependency, communications, strategic fit trust and commitment. Manufacturers' performance included productive/economic/emotional performance. A questionnaire was distributed to apparel manufactures who are doing business with fabric suppliers. A total of 101 complete questionnaires were used for further analysis. The results were as follows; First, apparel manufacturers do business with $10\~20$ fabric suppliers mainly, duration of business relation with main partners ranged from 1 year to 30 years, with 7 years on average. Among criteria with which apparel manufactures select fabric suppliers, quality and delivery-time were the most important. Second, cooperative attributes, communications, and strategic fit were positively related with trust. The higher commitment led to the high level of interdependency and strategic fit and tend to more trustworthy. Trust and commitment were significantly re lated with manufacturers' performance(i.e., productive/economic/emotional performance). This study is expected to contribute to increase the better performance for domestic apparel manufacturers.

How User's Participation in Feasibility Study Enhances Use of Business Intelligence Systems

  • Kim, Nam Gyu;Kim, Sung Kun
    • Journal of Information Technology Applications and Management
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    • v.24 no.3
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    • pp.1-21
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    • 2017
  • Business Intelligence (BI) system is a strategic tool that presents an analytical perspective about business and external environments. Even though its strategic value was well known, users often avoid using it or adopt it ceremonially. In fact, over 50 per cent of BI projects worldwide are reported to end in failure. Such an unexpectedly lower success rate has been a key issue in BI studies. In order to enhance a proper use of information systems, MIS field provided a number of theoretical constructs. One example is Goodhue & Thompson's Task-Technology Fit (TTF). In addition, internalization, the degree to which people make their own effort to modify behavior, was recently suggested as another important determinant of use. Though in MIS community both TTF and internalization proved to be a key determinant of system use, there has been not much study aiming to discover antecedents influencing these constructs. In this study we assert that user participation should be highlighted in BI projects. Especially, we emphasize user participation at the phase of feasibility study that is mainly conducted to determine whether a BI system is essentially necessary and practicable. Our research model employs participative feasibility study as a major antecedent for TTF and internalization that consequently will lead to user satisfaction and actual use. This model was empirically tested on 121 BI system users. The result shows that user participation in feasibility study is positively associated with TTF and internalization, each being related to user satisfaction and system use. It implies that, if an organization has BI users get involved in strategic feasibility study phase, the BI system would turn out to fit users' tasks and, furthermore, users would put more efforts spontaneously in order to use it properly.

The Modeling on Manufacturing Strategy of Competitive Environment (경쟁환경을 고려한 생산전략에 관한 모형)

  • 장현기;김창은
    • Journal of the Korea Safety Management & Science
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    • v.5 no.4
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    • pp.131-145
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    • 2003
  • A strategic plan for an immediate situation must be present in a business enterprise to deal actively and efficiently with the demand environment of new customer. The purpose of this paper is to provide research about the manufacturing strategy situations of the Korean manufacturing company. And this paper is a part of Modeling on Manufacturing Strategy. We emphasizes the importance of dynamism and complexity on the competitive environment, and classify the manufacturing strategy by trade-off model, cumulative model, sandcone model, strategic fit model, and competitiveness model.

National Context as an Important Variable for the Development of IT-based Strategic Capability

  • Kim, Gyeung-Min
    • Journal of Information Technology Applications and Management
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    • v.20 no.3
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    • pp.61-78
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    • 2013
  • This study was initiated to inquire as to why Wal-Mart failed in the Korean market. For multi-national corporations, environmental differences such as cultural and social differences among countries require business strategies to vary country by country. In Korea, Confucian Ethics are penetrated in every aspect of people's lives. An important aspect of Confucian Ethics is the role and responsibility of women in society. Considering this, businesses need to understand Korean women's preferences as consumers and develop business strategies accordingly. This study emphasizes that IS strategy is one component of the business strategy and, as such, must be rooted in business issues. Understanding that IS strategy should fit to national contexts, this study investigates the underlying process in which IT-based strategic capability is developed according to national context to gain competitive advantages.