Strategy Alignment as an Effort to Create an Innovation Process to Improve Organizational Performance
Main Article Content
Keywords
Innovation Process, Organizational Performance, Strategy Alignment
Abstract
This study aims to investigate the effect of strategy alignment as an effort to create an innovation process to improve organizational performance. The sample used in this study came from the Credit Union Cooperative which is under the auspices of the Indonesian Credit Union Cooperative Center (PUSKOPCUINA) Federation Network. Data was collected using a survey method to the management leaders of the Credit Union Cooperative. By using the path analysis method, the result shows firstly, that strategy alignment has a positive and significant influence on the innovation process. Secondly, strategy alignment has a positive but not significant effect on organizational performance. Thirdly, the innovation process has a positive and significant impact on organizational performance. In addition, by using the Sobel test, the result of the study shows that there is a mediating effect of the innovation process in mediating strategy alignment on organizational performance.
References
Book:
Buchari, A. (2014). Manajemen Pemasarandan Pemasaran Jasa. Bandung: CV. Alfabeta.
Chenhall, R. H. (2007). Theorizing Contingencies in Management Control System Research. In Handbook of Management Accounting Research. United Kingdom: Elsevier, 163-205.
Kaplan, R. S., & Norton, D. P. (2000). Focusing Your Organization on Strategy – with the Balance Scorecard, 2nd Edition. Harvard Business Review.
Kotler, P., & Keller, K. L. (2013). Manajemen Pemasaran Edisi 13 Jilid 1. Jakarta: Penerbit Erlangga.
Merchant, K. A., & Stede, W. A. (2018). Sistem Pengendalian Manajemen (Edisi ke-3). Jakarta: Salemba Empat.
Simon, R. (1995). Levers of Control: How Managers Use Innovative Control System to Drive Strategic Renewal. Harvard Business School Press.
Simon, R. (2000). Performance Measurement and Control System for Implementing Strategy. Prentice Hall.
Suliyanto. (2009). Metode Riset Bisnis. Yogyakarta: Penerbit Andi.
Journal:
Amit, R., & Schoemaker, P. (1993). Strategic Asset and Organizational Rent. Strategic Management Journal, 14(1), 33-46.
Barney, J. B. (1986). Organizational Culture: Can It Be a Source of Sustained Competitive Advantage? Academy of Management Review, 11(3), 656-665.
Barney, J. B., & Zajac, E. J. (1994). Competitive Organizational Behavior: Toward an Organizationally-Based Theory of Competitive Advantage. Strategic Management Journal, 15, 5-9.
Bates, K. A., & Flynn, E. J. (1995). Innovation History and Competitive Advantage: A Resource-Based View Analysis of Manufacturing Technology Innovation. Academy of Management. 1995(1), 235-239.
Batool, S. (2011). Analyze the Factors that Have an Influence on the Management Control System. Research Journal of Finance and Accounting, 2(3), 48-55.
Bowen, H., & Wiersema, M. (1999). Matching Method to Paradigm in Strategy Research: Limitations of Cross-Sectional Analysis and Some Methodological Alternative. Strategic Management Journal, 20(7), 625-636.
Bruce, K. (1998). Can You Align Business with Strategy? Strategy & Leadership. 26(5), 16-21.
Brynjolfsson, E., & Hitt, L. M. (1998). Beyond the Productivity Paradox. Communication of the ACM, 41(8), 49-55.
Cadez, S., & Guilding, C. (2008). An Explanatory Investigation of An Integrated Contingency Model of Strategic Management Accounting. Accounting, Organization and Society, 33(7-8), 836-863.
Calhoun, K. J. & Lederer, A. L. (1990). From Strategic Business Planning to Strategic Information System Planning: The Missing Link. Journal of Information Technology Management, 1(1), 1-5.
Chan, Y. E., Huff, S. L., Barclay, D. W., & Copeland, D. G. (1997). Business Strategic Orientation, Information Systems, Strategic Orientation, and Strategic Alignment. Information System Research, 8(2), 125-150.
Chatterjee, S. & Wernerfelt, B. (1991). The Link Between Resource and Types of Diversification: Theory and Evidence. Strategic Management Journal, 12(1), 33-48.
Chenhall, R. H. (2003). Management Control System Design Within Its Organizational Context: Finding from Contingency-Based Research and Directions for The Future. Accounting Organizations and Society, 28(1), 127-168.
Combe, J. G. & Ketchen, D. J. (1999). Explaining Interfirm Cooperation and Performance: Toward a Reconciliation of Prediction from the Resource-Based View and Organizational Economics. Strategic Management Journal, 20, 867-888.
Delafrooz, N., Taleghani, M., & Taghineghad, M. (2013). The Impact of Service Innovation on Consumer Satisfaction. International Journals of Marketing and Technology, 3(5), 127-144.
Dierickx, I., & Cool, K. (1989). Asset Stock Accumulation and Sustainability of Competitive Advantage. Management Science, 35(12), 1504-1511.
Frishammar, J., Kurkkio, M. K., Abrahamsson, L., & Lichtenthaler, U. (2012). Antecedents and Consequences of Firms Process Innovation Capability: A Literature Review and a Conceptual Framework. IEEE Transactions on Engineering Management, 59(4), 519-529.
Gunday, G., Ulusoy, G., Kilic, K., & Alpkan, L. (2011). Effect of Innovation Types on Firm Performance. International Journal Production Economic, 133, 662-676.
Henri, J. F. (2006). Management Control System and Strategy: A Resource-Based Perspective. Accounting, Organizations and Society, 31, 529-558.
Hurley, R. F., & Hult, G. T. M. (1998). Innovation, Market Orientation, and Organizational Learning: An Integration and Empirical Examination. Journal of Marketing, 62(1), 42-54.
Jariah, A., Ruliana, T., Suyatin (2016). Pengukuran Kinerja pada Koperasi Semoga Jaya Unit Simpan Pinjam di Tenggarong. JMA: Jurnal Manajemen dan Akuntansi, 4(3), 307-312.
Johnson, J. D., Meyer, M. E., Berkowitz, J. M., Ethington, C. T., & Miller, V. D. (1997). Testing Two Contrasting Structural Models of Innovativeness in A Contractual Network. Human Communication Research, 24(2), 320-348.
Lei, D., Hitt, M. A., & Bettis, R. (1996). Dynamic Core Competences Through Meta-Learning and Strategic Context. Journal of Management, 22(4), 549-569.
Litz, R. A. (1996). A Resource-Based-View of the Socially Responsible Firm: Stakeholder Interdependence, Ethical Awareness, and Issue Responsiveness as Strategic Assets. Journal of Business Ethics, 15, 1355-1363.
Luftman, J. N., & Brier, T. (1999). Achieving and Sustaining Business-IT Alignment. California Management Review, 42(1), 109-122.
Markides, C. C., & Williamson, P. J. (1996). Corporate Diversification and Organizational Structure. A Resource-Based View Academy of Management Journal, 39(2), 34-67.
Michalisin, M., Smith, R., & Kline, D. M. (1997). In Search of Strategic Asset. International Journal of Organizational Analysis, 5(4), 360-338.
Prahalad, C. K. & Hamel, G. (1989). Strategic Intent. Harvard Business Review, 89, 63–76.
Prahalad, C. K. & Hamel, G. (2006). The Core Competence of Corporation, Harvard Business Review, 69(3), 275-292.
Premkumar, G., & King, W. R. (1992). An Empirical Assessment of Information System Planning and the Role of Information System in Organizations. Journal of Management Information System, 9(2), 99-125.
Rindova, V. P., & Fombrun, C. J. (1999). Constructing Competitive Advantage: The Role of Firm-Constituent Interaction. Strategic Management Journal, 20(8), 691-710.
Robins, J., & Wiersema, M. (1995). A Resource-Based Approach to the Multibusiness Firm: Empirical Analysis of Portfolio Interrelationships and Corporate Financial Performance. Strategic Management Journal, 16(4), 227-299.
Sabherwal, R. & Chan, Y. E. (2001). Alignment Between Business and IS Strategies: A Study of Prospector, Analyzer and Defenders. Information System Research, 12(1), 11-33.
Schoemaker, P. J. (1992). How to Link Strategic Vision to Core Capabilities. Sloan Management Review, 34(1), 67.
Solikhah, B. Rohman, A. Meiranto, W. (2010). Implikasi Intelektual Capital terhadap Financial Performance, Growth, dan Market Value: Studi Empiris dengan Pendekatan Simplistic Spesification. Simposium Nasional Akuntansi XIII.
Wang Y. H., & Tsai C. F. (2014). The Relationship Between Brand Image and Purchase Intention: Evidence from Award Winning Mutual Fund. The International Journal of Business and Finance Research, 8(2), 27-39.
Buchari, A. (2014). Manajemen Pemasarandan Pemasaran Jasa. Bandung: CV. Alfabeta.
Chenhall, R. H. (2007). Theorizing Contingencies in Management Control System Research. In Handbook of Management Accounting Research. United Kingdom: Elsevier, 163-205.
Kaplan, R. S., & Norton, D. P. (2000). Focusing Your Organization on Strategy – with the Balance Scorecard, 2nd Edition. Harvard Business Review.
Kotler, P., & Keller, K. L. (2013). Manajemen Pemasaran Edisi 13 Jilid 1. Jakarta: Penerbit Erlangga.
Merchant, K. A., & Stede, W. A. (2018). Sistem Pengendalian Manajemen (Edisi ke-3). Jakarta: Salemba Empat.
Simon, R. (1995). Levers of Control: How Managers Use Innovative Control System to Drive Strategic Renewal. Harvard Business School Press.
Simon, R. (2000). Performance Measurement and Control System for Implementing Strategy. Prentice Hall.
Suliyanto. (2009). Metode Riset Bisnis. Yogyakarta: Penerbit Andi.
Journal:
Amit, R., & Schoemaker, P. (1993). Strategic Asset and Organizational Rent. Strategic Management Journal, 14(1), 33-46.
Barney, J. B. (1986). Organizational Culture: Can It Be a Source of Sustained Competitive Advantage? Academy of Management Review, 11(3), 656-665.
Barney, J. B., & Zajac, E. J. (1994). Competitive Organizational Behavior: Toward an Organizationally-Based Theory of Competitive Advantage. Strategic Management Journal, 15, 5-9.
Bates, K. A., & Flynn, E. J. (1995). Innovation History and Competitive Advantage: A Resource-Based View Analysis of Manufacturing Technology Innovation. Academy of Management. 1995(1), 235-239.
Batool, S. (2011). Analyze the Factors that Have an Influence on the Management Control System. Research Journal of Finance and Accounting, 2(3), 48-55.
Bowen, H., & Wiersema, M. (1999). Matching Method to Paradigm in Strategy Research: Limitations of Cross-Sectional Analysis and Some Methodological Alternative. Strategic Management Journal, 20(7), 625-636.
Bruce, K. (1998). Can You Align Business with Strategy? Strategy & Leadership. 26(5), 16-21.
Brynjolfsson, E., & Hitt, L. M. (1998). Beyond the Productivity Paradox. Communication of the ACM, 41(8), 49-55.
Cadez, S., & Guilding, C. (2008). An Explanatory Investigation of An Integrated Contingency Model of Strategic Management Accounting. Accounting, Organization and Society, 33(7-8), 836-863.
Calhoun, K. J. & Lederer, A. L. (1990). From Strategic Business Planning to Strategic Information System Planning: The Missing Link. Journal of Information Technology Management, 1(1), 1-5.
Chan, Y. E., Huff, S. L., Barclay, D. W., & Copeland, D. G. (1997). Business Strategic Orientation, Information Systems, Strategic Orientation, and Strategic Alignment. Information System Research, 8(2), 125-150.
Chatterjee, S. & Wernerfelt, B. (1991). The Link Between Resource and Types of Diversification: Theory and Evidence. Strategic Management Journal, 12(1), 33-48.
Chenhall, R. H. (2003). Management Control System Design Within Its Organizational Context: Finding from Contingency-Based Research and Directions for The Future. Accounting Organizations and Society, 28(1), 127-168.
Combe, J. G. & Ketchen, D. J. (1999). Explaining Interfirm Cooperation and Performance: Toward a Reconciliation of Prediction from the Resource-Based View and Organizational Economics. Strategic Management Journal, 20, 867-888.
Delafrooz, N., Taleghani, M., & Taghineghad, M. (2013). The Impact of Service Innovation on Consumer Satisfaction. International Journals of Marketing and Technology, 3(5), 127-144.
Dierickx, I., & Cool, K. (1989). Asset Stock Accumulation and Sustainability of Competitive Advantage. Management Science, 35(12), 1504-1511.
Frishammar, J., Kurkkio, M. K., Abrahamsson, L., & Lichtenthaler, U. (2012). Antecedents and Consequences of Firms Process Innovation Capability: A Literature Review and a Conceptual Framework. IEEE Transactions on Engineering Management, 59(4), 519-529.
Gunday, G., Ulusoy, G., Kilic, K., & Alpkan, L. (2011). Effect of Innovation Types on Firm Performance. International Journal Production Economic, 133, 662-676.
Henri, J. F. (2006). Management Control System and Strategy: A Resource-Based Perspective. Accounting, Organizations and Society, 31, 529-558.
Hurley, R. F., & Hult, G. T. M. (1998). Innovation, Market Orientation, and Organizational Learning: An Integration and Empirical Examination. Journal of Marketing, 62(1), 42-54.
Jariah, A., Ruliana, T., Suyatin (2016). Pengukuran Kinerja pada Koperasi Semoga Jaya Unit Simpan Pinjam di Tenggarong. JMA: Jurnal Manajemen dan Akuntansi, 4(3), 307-312.
Johnson, J. D., Meyer, M. E., Berkowitz, J. M., Ethington, C. T., & Miller, V. D. (1997). Testing Two Contrasting Structural Models of Innovativeness in A Contractual Network. Human Communication Research, 24(2), 320-348.
Lei, D., Hitt, M. A., & Bettis, R. (1996). Dynamic Core Competences Through Meta-Learning and Strategic Context. Journal of Management, 22(4), 549-569.
Litz, R. A. (1996). A Resource-Based-View of the Socially Responsible Firm: Stakeholder Interdependence, Ethical Awareness, and Issue Responsiveness as Strategic Assets. Journal of Business Ethics, 15, 1355-1363.
Luftman, J. N., & Brier, T. (1999). Achieving and Sustaining Business-IT Alignment. California Management Review, 42(1), 109-122.
Markides, C. C., & Williamson, P. J. (1996). Corporate Diversification and Organizational Structure. A Resource-Based View Academy of Management Journal, 39(2), 34-67.
Michalisin, M., Smith, R., & Kline, D. M. (1997). In Search of Strategic Asset. International Journal of Organizational Analysis, 5(4), 360-338.
Prahalad, C. K. & Hamel, G. (1989). Strategic Intent. Harvard Business Review, 89, 63–76.
Prahalad, C. K. & Hamel, G. (2006). The Core Competence of Corporation, Harvard Business Review, 69(3), 275-292.
Premkumar, G., & King, W. R. (1992). An Empirical Assessment of Information System Planning and the Role of Information System in Organizations. Journal of Management Information System, 9(2), 99-125.
Rindova, V. P., & Fombrun, C. J. (1999). Constructing Competitive Advantage: The Role of Firm-Constituent Interaction. Strategic Management Journal, 20(8), 691-710.
Robins, J., & Wiersema, M. (1995). A Resource-Based Approach to the Multibusiness Firm: Empirical Analysis of Portfolio Interrelationships and Corporate Financial Performance. Strategic Management Journal, 16(4), 227-299.
Sabherwal, R. & Chan, Y. E. (2001). Alignment Between Business and IS Strategies: A Study of Prospector, Analyzer and Defenders. Information System Research, 12(1), 11-33.
Schoemaker, P. J. (1992). How to Link Strategic Vision to Core Capabilities. Sloan Management Review, 34(1), 67.
Solikhah, B. Rohman, A. Meiranto, W. (2010). Implikasi Intelektual Capital terhadap Financial Performance, Growth, dan Market Value: Studi Empiris dengan Pendekatan Simplistic Spesification. Simposium Nasional Akuntansi XIII.
Wang Y. H., & Tsai C. F. (2014). The Relationship Between Brand Image and Purchase Intention: Evidence from Award Winning Mutual Fund. The International Journal of Business and Finance Research, 8(2), 27-39.
Article Sidebar
Published
Nov 29, 2023
Article Details
How to Cite
Te’dang, R., & Ng, S. (2023). Strategy Alignment as an Effort to Create an Innovation Process to Improve Organizational Performance. SIMAK, 21(02), 267-283. https://doi.org/https://doi.org/10.35129/simak.v21i02.473
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