Advanced

Strategy and Alignment in a Restricted Transitional Economy: Empirical Research on its Application to Iranian State-Owned Enterprises

Tajeddini, Kayhan LU and Myfanwy, Trueman (2015) In Long Range Planning
Abstract
Successful innovation strategy relies on experience gained from a complexity of understanding, anticipating and managing the global business environment. But, although much research has examined strategies of private sector organizations in Western economies, there are relatively few studies of innovation in public sector organizations of transitional and protected economic environments, such as Iran. Consequently, this work investigates Iranian state-owned enterprises (SOEs) and how senior managers’ approach towards innovativeness and learning can affect organizational performance. These managers work in an uncertain environment, regulated by the state but subject to business environment challenges created by UN sanctions, as well as... (More)
Successful innovation strategy relies on experience gained from a complexity of understanding, anticipating and managing the global business environment. But, although much research has examined strategies of private sector organizations in Western economies, there are relatively few studies of innovation in public sector organizations of transitional and protected economic environments, such as Iran. Consequently, this work investigates Iranian state-owned enterprises (SOEs) and how senior managers’ approach towards innovativeness and learning can affect organizational performance. These managers work in an uncertain environment, regulated by the state but subject to business environment challenges created by UN sanctions, as well as global market competition. This study draws on innovation and learning orientation theory to develop a strategy-centered model based on a survey of 127 Iranian SOEs. Despite the limitations of a state-protected economy and restrictions generated by sanctions and environmental uncertainty, senior managers of SOEs can influence organizational culture for innovation, a normative dimension, and learning, a cognitive dimension. Both dimensions can relate to improvements in delivery speed, costs and quality, as well as confidence in future company performance. However, some ongoing problems arise from a highly regulated hostile business environment, forming a regulatory dimension that impedes organizational learning. Further research is required to understand the contextual factors that influence internal company culture, as well as how the impact of a restricted business environment appears to vary from service to retail and manufacturing industries. This research represents a rare opportunity to investigate SOE strategy in a restricted transitional economy, such as Iran. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Transitional Economy, State-Owned Enterprises, Strategy, Iran
in
Long Range Planning
publisher
Elsevier
external identifiers
  • scopus:84924690615
ISSN
1873-1872
DOI
10.1016/j.lrp.2015.02.001
language
English
LU publication?
yes
id
6be889ae-121f-4ead-ba0f-7776e7308cf6 (old id 5276600)
date added to LUP
2015-08-03 12:30:58
date last changed
2017-10-01 03:23:47
@article{6be889ae-121f-4ead-ba0f-7776e7308cf6,
  abstract     = {Successful innovation strategy relies on experience gained from a complexity of understanding, anticipating and managing the global business environment. But, although much research has examined strategies of private sector organizations in Western economies, there are relatively few studies of innovation in public sector organizations of transitional and protected economic environments, such as Iran. Consequently, this work investigates Iranian state-owned enterprises (SOEs) and how senior managers’ approach towards innovativeness and learning can affect organizational performance. These managers work in an uncertain environment, regulated by the state but subject to business environment challenges created by UN sanctions, as well as global market competition. This study draws on innovation and learning orientation theory to develop a strategy-centered model based on a survey of 127 Iranian SOEs. Despite the limitations of a state-protected economy and restrictions generated by sanctions and environmental uncertainty, senior managers of SOEs can influence organizational culture for innovation, a normative dimension, and learning, a cognitive dimension. Both dimensions can relate to improvements in delivery speed, costs and quality, as well as confidence in future company performance. However, some ongoing problems arise from a highly regulated hostile business environment, forming a regulatory dimension that impedes organizational learning. Further research is required to understand the contextual factors that influence internal company culture, as well as how the impact of a restricted business environment appears to vary from service to retail and manufacturing industries. This research represents a rare opportunity to investigate SOE strategy in a restricted transitional economy, such as Iran.},
  author       = {Tajeddini, Kayhan and Myfanwy, Trueman},
  issn         = {1873-1872},
  keyword      = {Transitional Economy,State-Owned Enterprises,Strategy,Iran},
  language     = {eng},
  month        = {03},
  publisher    = {Elsevier},
  series       = {Long Range Planning},
  title        = {Strategy and Alignment in a Restricted Transitional Economy: Empirical Research on its Application to Iranian State-Owned Enterprises},
  url          = {http://dx.doi.org/10.1016/j.lrp.2015.02.001},
  year         = {2015},
}