CAN A PROPER STRATEGIC PLANNING SECURE ITS IMPLEMENTATION? A CASE IN NEW DISTRICT IN DEVELOPING COUNTRY
Firda Hidayati(1*)
(1) Universitas Brawijaya
(*) Corresponding Author
Abstract
Strategic planning is highly recommended as one of the key factors that determine the success of the organization. However, only a few organizations succeed in implemented it. The research studied causes of poor strategy implementation. The study used Data collection techniques included previous research on factors that influence strategy implementation failures, and a survey of . three levels of managers in 38 agencies in the government. Using structural Equation Modelling-Partial Least Squares (SEM-PLS) as an analysis tool, results showed that stakeholder uncertainty, resources, and expertise are the major factors that influence the failure of strategy implementation. The finding provides an important explanation for poor strategy implementation performance in Batu Bara , which is a new district in Indonesia. One of the key policy recommendations is for the government to take measures toward enhancing the capacity of managers to manage stakeholders’ uncertainty.
Keywords
Full Text:
PDFReferences
Afandi, M. N., Anwar, S., & Ahmad, F. (2018). Mediating Role of Managerial and Stakeholder Involvement in the Effect of Formal Strategic Planning on Strategic Implementation Success: Case of Municipal Government in Cirebon, West Java. International Journal of Academic Research in Business and Social Sciences, 8(3), 638–651. https://doi.org/10.6007/ijarbss/v8-i3/3955
Andrews, R., Boyne, G. A., Law, J., & Walker, R. M. (2009). Strategy formulation, strategy content and performance: An empirical analysis. Public Management Review, 11(1), 1–22. https://doi.org/10.1080/14719030802489989
Andrews, R., Boyne, G. A., Law, J., & Walker, R. M. (2011). Strategy implementation and public service performance. Administration and Society, 43(6), 643–671. https://doi.org/10.1177/0095399711412730
Andrews, R., Boyne, G. A., Law, J., & Walker, R. M. (2012). Strategic management and public service performance. New York: Palgrave Macmillan.
Author, & Hendrick, R. (2003). Public Management Research Association Strategic Planning Environment, Process, and Performance in Public Agencies: A Comparative Study of Departments in. Source: Journal of Public Administration Research and Theory: J-PART, 13(4), 491–519. https://doi.org/10.1093/jopart/mug031
Boyne, G. A. (2010). Strategic Planning. In R. Ashworth, G. A. Boyne, & T. Entwistle (Ed.). Public Service Improvement: Theories and Evidence (p. 60-77). Oxford: Oxford University Press.
Boyne, G. (2001). Planning, Performance And Public Services. Public Administration, 79(1), 73–88. https://doi.org/10.1111/1467-9299.00246
Boyne, G. A., Gould-Williams, J. S., Law, J., & Walker, R. M. (2004). Problems of rational planning in public organizations: An empirical assessment of the conventional wisdom. Administration and Society, 36(3), 328–350. https://doi.org/10.1177/0095399704265294
Boyne, G., & Gould-Williams, J. (2003). Planning and performance in public organizations an empirical analysis. Public Management Review, 5(1), 115–132. https://doi.org/10.1080/146166702200002889
Bradley, S. W., Wiklund, J., & Shepherd, D. A. (2011). Swinging a double-edged sword: The effect of slack on entrepreneurial management and growth. Journal of Business Venturing, 26(5), 537–554. https://doi.org/10.1016/j.jbusvent.2010.03.002
Bryson, J., Edwards, L. H., Bryson, J., & Edwards, L. H. (2017). Strategic Planning in the Public Sector. Oxford Research Encyclopedia of Business and Management, c, 1–27. https://doi.org/10.1093/acrefore/9780190224851.013.128
Bryson, J. M. (2004). What to do when stakeholders matter: Stakeholder Identificatixon and analysis techniques. Public Management Review, 6(1), 21–53. https://doi.org/10.1080/14719030410001675722
Bryson, John M. (2004). Strategic planning for public and nonprofit organizations: a guide to strengthening and sustaining organizational achievement.3rd ed. John Wiley & Sons, Inc. San Francisco
Bryson, J. M., Edwards, L. H., & Van Slyke, D. M. (2018). Getting strategic about strategic planning research. Public Management Review, 20(3), 317–339. https://doi.org/10.1080/14719037.2017.1285111
Chen, H., Cohen, P., & Chen, S. (2010). How big is a big odds ratio? Interpreting the magnitudes of odds ratios in epidemiological studies. Communications in Statistics: Simulation and Computation, 39(4), 860–864. https://doi.org/10.1080/03610911003650383
Collier, N., Fishwick, F., & Floyd, S. W. (2004). Managerial involvement and perceptions of strategy process. Long Range Planning, 37(1), 67–83. https://doi.org/10.1016/j.lrp.2003.11.012
Dean, J. W., & Sharfman, M. P. (1996). Does decision process matter? A study of strategic decision-making effectiveness. Academy of Management Journal, 39(2), 368–396. https://doi.org/10.5465/256784
Eisenhardt, K. M. (1989). Making Fast Strategic Decisions in High-Velocity Environments. Academy of Management Journal, 32(3), 543–576. https://doi.org/10.2307/256434
Elbanna, Said. (2012). Slack, planning and organizational performance: Evidence from the Arab middle east. European Management Review, 9(2), 99–115. https://doi.org/10.1111/j.1740-4762.2012.01028.x
Elbanna, Said, Andrews, R., & Pollanen, R. (2016). Strategic Planning and Implementation Success in Public Service Organizations: Evidence from Canada. Public Management Review, 18(7), 1017–1042. https://doi.org/10.1080/14719037.2015.1051576
Elbanna, Saïd, Thanos, I. C., & Colak, M. (2014). An exploratory study of the determinants of the quality of strategic decision implementation in Turkish industrial firms. In Journal of General Management (Vol. 40, Issue 2, pp. 27–46). https://doi.org/10.1177/030630701404000203
George, B. (2020). Successful Strategic Plan Implementation in Public Organizations: Connecting People, Process, and Plan (3Ps). Public Administration Review, 1–6. https://doi.org/10.1111/puar.13187
George, B., Desmidt, S., Cools, E., & Prinzie, A. (2018). Cognitive styles, user acceptance and commitment to strategic plans in public organizations: an empirical analysis. Public Management Review, 20(3), 340–359. https://doi.org/10.1080/14719037.2017.1285112
Håkonsson, D. D., R. M. Burton, B. Obel, & J. T. Lauridsen. (2012). Strategy Implementation Requires the Right Executive Style: Evidence from Danish SMEs. Long Range Planning 45 (2–3): 182–208. doi:10.1016/j.lrp.2012.02.004.
Hair, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109(August 2019), 101–110. https://doi.org/10.1016/j.jbusres.2019.11.069
Hinţea, C. E., & Ţiclău, T. C. (2015). Strategic planning and public management reform: The case of Romania. Transylvanian Review of Administrative Sciences, 2015, 30–44.
Hopkins, W. E., and S. A. Hopkins. 1997. “Strategic Planning-Financial Performance Relationships in Banks: A Causal Examination.” Strategic Management Journal 18 (8): 635–652.
Hrebiniak, L. G. (2006). Obstacles to effective strategy implementation. Organizational Dynamics, 35(1), 12–31. https://doi.org/10.1016/j.orgdyn.2005.12.001
Johnsen, Å. (2016). Strategic Planning and Management in Local Government in Norway: Status after Three Decades. Scandinavian Political Studies, 39(4), 333–365. https://doi.org/10.1111/1467-9477.12077
Joyce, P. (2000). Strategy in the public sector: A guide to effective change management. New York, NY: John Wiley.
Kapucu, N. (2006). Globalization: issues in public management. Globalization:Issues in Public Management, 883–898.
Kock, N. (2014). Advanced Mediating Effects Tests, Multi-Group Analyses, and Measurement Model Assessments in PLS-Based SEM. International Journal of E-Collaboration, 10(1), 1–13. https://doi.org/10.4018/ijec.2014010101
Kusumasari, B. (2012). The Resource-Based Theory and Disaster Management: Implication for Local Government in Managing a Disaster. JKAP (Jurnal Kebijakan dan Administrasi Publik) ,16(2), pp. 79–96. https://doi.org/10.22146/jkap.8059
Lee, E., & Puranam, P. (2016). The implementation imperative: Why one should implement even imperfect strategies perfectly. Strategic Management Journal, 37(8), 1529–1546. https://doi.org/10.1002/smj.2414
Leguina, A. (2015). A primer on partial least squares structural equation modeling (PLS-SEM). International Journal of Research & Method in Education, 38(2), 220–221. https://doi.org/10.1080/1743727x.2015.1005806
Liando, Daud M. Implementasi Kebijakan Pembentukan Daerah Otonom Baru dan Dampaknya Bagi Kualitas Pelayanan Publik. (2012). JKAP (Jurnal Kebijakan dan Administrasi Publik), 16 (2), 47–61. https://doi.org/10.22146/jkap.8046
Mintzberg, H. (1994). Rethinking strategic planning part I: Pitfalls and fallacies. Long Range Planning, 27(3), 12–21. https://doi.org/10.1016/0024-6301(94)90185-6
Noble, C. H. (1999). The eclectic roots of strategy implementation research. Journal of Business Research, 45(2), 119–134. https://doi.org/10.1016/S0148-2963(97)00231-2
Nurmandi, A., & Purnomo, E. P. (2011). Making the strategic plan work in local government: A case study of strategic plan implementation in yogyakarta special province (ysp). International Review of Public Administration, 16(2), 143–164. https://doi.org/10.1080/12264431.2011.10805200
Nutt, P. C. (1999). Surprising but true: Half the decisions in organizations fail. Academy of Management Executive, 13(4), 75–89. https://doi.org/10.5465/ame.1999.2570556
O’Toole, L. J., & Meier, K. J. (2015). Public management, context, and performance: In quest of a more general theory. Journal of Public Administration Research and Theory, 25(1), 237–256. https://doi.org/10.1093/jopart/muu011
Pasha, O. Q., Poister, T. H., & Edwards, L. H. (2018). Mutual Relationship of Strategic Stances and Formulation Methods, and Their Impacts on Performance in Public Local Transit Agencies. Administration and Society, 50(6), 884–910. https://doi.org/10.1177/0095399715587524
Poister, T. H., Edwards, L. H., & Pasha, O. (2013). The impact of strategic planning on organizational outcomes. Public Performance and Management Review, 36(4), 585–615.
Poister, T., Edwards, L., Pasha, O., & Edwards, J. (2013). Strategy formulation and performance: Evidence from local public transit agencies. Public Performance and Management Review, 36(4), 585–615. https://doi.org/10.2753/PMR1530-9576360405
Poister, T. H. (2010a). The Future of Public and Nonprofit Strategic Planning in the United States: The Past as Prelude. Public Administration Review, 70(December), S246–S254. https://doi.org/10.2307/40984136
Poister, T. H. (2010b). The future of strategic planning in the public sector: Linking strategic management and performance. Public Administration Review, 70(SUPPL. 1), 246–254. https://doi.org/10.1111/j.1540-6210.2010.02284.x
Poister, T. H., Pitts, D. W., & Edwards, L. H. (2010). Strategic management research in the public sector: A review, synthesis, and future directions. American Review of Public Administration, 40(5), 522–545. https://doi.org/10.1177/0275074010370617
Poister, T. H., & Streib, G. D. (1994). Municipal management tools from 1976 to 1993: An overview and update. Public Productivity & Management Review, 18, 115-125.
Quinn, J. B. (1980). Strategies for change: Logical incrementalism. Homewood, IL:
Richard D. Irwin.
Salkic, I. (2014). Impact of Strategic Planning on Management of Public Organizations in Bosnia and Herzegovina. Interdisciplinary Description of Complex Systems, 12(1), 61–77. https://doi.org/10.7906/indecs.12.1.4
Ssenyonga, M. (2010). What role should knowledge management play in the development management of regional goverments and advanced educational institutions. Jurnal Kebijakan & Administrasi Publik,14(1), pp. 46–60).
Smith, L. D., Campbell, J. F., Subramanian, A., Bird, D. A., & Nelson, A. C. (2001). Strategic planning for municipal information systems: Some lessons from a large U.S. city. American Review of Public Administration, 31, 139-157.
Solimun. Fernandes, A. A. R., Nurjannah. (2017). Metode Statistika Multivariat Pemodelan Persamaan Strukturan (SEM) Pendekatan WarpPLS. Malang. UB Press.
Struyk, Raymond J. (2007). Factors in Successful Program Implementation in Russia During the Transition: Pilot Programs As A Guide. Public Administration and Development, 27, 63–83. DOI: 10.1002/pad.430
Sunahwati, E., Maarif, M. S., & Sukmawati, A. (2019). Human Resources Development Policy as a Strategy for Improving Public Organizational Performance. JKAP (Jurnal Kebijakan Dan Administrasi Publik), 23(1), 50. https://doi.org/10.22146/jkap.37957
Titus, V. K., Covin, J. G., & Slevin, D. P. (2011). Aligning strategic processes in pursuit of firm growth. Journal of Business Research, 64(5), 446–453. https://doi.org/10.1016/j.jbusres.2010.03.003
Walker, R. M., Andrews, R., Boyne, G. A., Meier, K. J., & O’Toole, L. J. (2010). Wakeup call:
Strategic management, network alarms, and performance. Public Administration Review, 70(5), 731–741.
Williams, W., & Lewis, D. (2008). Strategic management tools and public sector management: The challenge of context specificity. Public Management Review, 10(5), 653–671. https://doi.org/10.1080/14719030802264382
Wooldridge, B., Schmid, T., & Floyd, S. W. (2008). The middle management perspective on strategy process: Contributions, synthesis, and future research. In Journal of Management (Vol. 34, Issue 6). https://doi.org/10.1177/0149206308324326
Yamin, S. & Kurniawan, H. (2009). Structural Equation Modelling: Belajar Lebih Mudah Teknik Analisis Data Kuesioner dengan Lisrel – PLS. Jakarta. Salemba Infotek.
DOI: https://doi.org/10.22146/jkap.59593
Article Metrics
Abstract views : 2693 | views : 1882Refbacks
- There are currently no refbacks.
Copyright (c) 2021 JKAP (Jurnal Kebijakan dan Administrasi Publik)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.