Factors Influencing Strategy Implementation: a Study in an Automotive Steering Company in Germany

Abstract

Background: Although strategy planning is largely discussed, there is a lack of studies regarding strategy implementation. Extant research considers a limited set of constructs or is based on case studies, preventing generalisation. Also, recent studies that consider the role of managers of different hierarchical levels focus on a more specific context (e.g. digitalisation strategy).

Purpose: This research aims to assess the importance of facilitators for overall business strategy implementation in a manufacturing company, taking into consideration the perspective of different hierarchical levels within the company.

Study design/methodology/approach: Data from a questionnaire applied to respondents from different hierarchical levels of an automotive company was analysed using the Kruskal-Wallis test. The difference among the medians of the grades given by each level to the importance of each facilitator’s dimension was checked. If a statistical difference was observed, the Dunn’s post-hoc test was applied to identify which pairs of groups have statistically significant differences of perception.

Findings/conclusions: This paper corroborates some results from prior literature. Different hierarchical levels evaluate the importance of some dimensions of strategy implementation differently, such as dimensions related to internal communication and strategic alignment. These two constructs, together with management style, proved to be relevant for strategy implementation. Based on these findings, we offer practical recommendations for managers to improve strategy implementation. This research addresses factors not considered in prior research or only investigated in qualitative studies.

Limitations/future research: The study was carried out within one company in the automotive industry, with a small sample, which limits generalisation. Future research could explore this subject in different companies and industries, either in big or in small companies, and in companies with more horizontal organisational structure. Moderating variables and contingency theory could be used to investigate in which cases the involvement of each hierarchical level is more relevant.