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EFFECT OF STRATEGIC LEADERSHIP, ORGANIZATIONAL
INNOVATIVENESS, INFORMATION TECHNOLOGY CAPABILITY ON
EFFECTIVE STRATEGY IMPLEMENTATION
BY
Ahmad Aliyu Palladan
( 96041)
PhD Student (Management)
Supervisor:
Dr Kadzrina Binti Abdulkadir
Dr Chong Yen Wan
School of Business Management
4/16/2017
Presentation Outline
Related Literature and Conceptual Framework
Introduction
Background & Problem Statement,
Research Question, Research
Objective
Related Literature,
theories and conceptual
framework
Research design; Population
& sample & sample design ;
Data Collection Methods &
analysis
Research Methodology
Research Findings and Discussion
PLS Measurement Model Result,
Structural Model Result,
Implications, Limitations &
Suggestions
 One of the most central areas of concern among contemporary organizational
theorists and practitioners is organizational effectiveness. A good mechanism for
achieving it is effective strategy implementation (Sharbat & Fuqaha, 2014; Ali &
Hadi, 2012);
 The dramatical changes taking place in the higher education sector globally is
compelling educational managers to switch from conventional style of
management to more creative and dynamic management practices (Kazee, 2010);
 This is due to the high level of competition taking place in the sector and
persistence demand for increase in quality from different stakeholders as well as
decline in government funding;
 In Nigeria a lot of gatherings took place that were aimed at searching for ways that will
facilitate the improvement of tertiary institutions performance (The Nigeria Education
Fair, 2014);
 Today, strategic management is gaining more and more importance as a tool for
managing public tertiary institutions in Nigeria for better results (Omebe, &
Nwogbo, 2015; Odiba, 2012);
 A good strategic plan if effectively implemented will certainly give an
organization superior competitive advantage and increase its performance
(Birasnav, 2014);
 The main challenge in strategic management process is associated with strategy
execution (Ali & Hadi, 2012);
 Strategy execution is a process by which strategies are put into concrete action
through improvement of programs, budgets, and actions (Wheelen, Hunger,
Hoffman & Bamford, 2015);
 Tertiary education institutions in Nigeria consist of Universities, Polytechnics,
Colleges of Education and other institutions of higher learning that offers
correspondence courses, diplomas and certificates (Famade, Omiyale, & Adebola,
2015).
Liberalization of the tertiary education space that led to the emergence of huge
number of private universities, polytechnics and colleges of education (Oyediji,
2012);
Outflow of Nigerian students abroad is another issue. According to Deji-Folutile
(2014), the former Nigerian central bank governor, Malam Sanusi Lamido Sanusi
lament that in Ghana alone, there are over 71,000 Nigerian students paying almost one
billion US dollars annually;
Exams Ethics International, a non- governmental organization had confirmed that the
expenses of Nigerian students abroad are more than NGN1.5 trillion annually (Nigeria
Spends, 2014);
Generally, empirical findings on effective strategy implementation from different
organizations are therefore far from encouraging (Cater & Pucko, 2010).
Theoretical
Research Gap
Previous strategic leadership
studies on strategy
implementation are based on the
single-actor or ‘hero’ e.g. (Fourie,
2009; O’Reilly et al , 2010; Araujo
et al,2013; Omodi & Ombui 2013;
Lowry ,2015; Gichinga, 2016)
(Kriger & Zhovtobryukh, 2013).
The current study include IT
capability as a moderating
variable. Hitherto, Khan &
Kahlique, (2014);
Hutzschenreuter, Pedersen
andVolberda, (2007) called for
future researches in strategy
implementation to consider
employing a moderator
Previous studies were largely
conducted in the western world
and Asia (Arasa & K’obonyo
2012; Khan & Khalique 2014;
Palladan, Abdul Kadir & Chong,
2016);
Studies focused more on profit
making organizations and in
Universities only e.g. (Luque
2013; Thomas 2013; Akbapour
et al 2014;Shafarzadeh et al
2015) (Jiang & Carpenter, 2013).
Research Questions Research Objectives
1. What is the effect of strategic leadership
on effective strategy implementation? 1. To assess the effect of strategic
leadership on effective strategy
implementation.
2. What is the effect of organizational
innovativeness on effective strategy
implementation?
2. To determine the effect of organizational
innovativeness on effective strategy
implementation.
3. How does IT capability effect strategy
implementation?
3. To evaluate the effect of IT capability on
effective strategy implementation
4. Does IT capability moderate the
relationship between strategic leadership
4. To assess the moderating effect of IT
capability on the relationship between
RBV
• Resource based view theory(Barney, 1991), underpinned this study. RVB
implies that organizations can attain competitive advantage using
organizational resources.
• Organizational resources consist of all tangible and intangible, as well as
human and nonhuman that are owned or controlled by the organization
(Barney, 1991; Wernerfelt, 1984).
DC
• Dynamic Capability (Teece, Pisano & Shuen 1997; Pavlous, 2004;
Eisenhardt & Martin, 2000) is the first supporting theory for this study.
• The RBV has been criticized for disregarding factors surrounding
resources by assuming that resources simply exist (Teece, Pisano & Shuen,
1997).
CT
• Complementarity Theory (Barua, Lee & Whinston, 1996) is the second
supporting theory.
• RBV fails to sufficiently consider the fact that is difficult for resources to
act in isolation in creating and maintaining competitive advantages (Chan
et al., 2004; Wade & Hulland, 2004).
STRATEGIC
LEADERSHIP
ORGANIZATIONAL
INNOVATIVENESS
EFFECTIVE
STRATEGY
IMPLEMENTATI
ON
IT
CAPABILITY
. Object
. Knowledge
. Operation
Methodology
Research Design:
Quantitative (Creswell,
2014): survey research
design.
Unit of Analysis:
Organization
Respondent: Deans
Population:
143 Deans from Public
Tertiary Institutions.
Sample Size: 104
obtained using Dilman
(2007); increase to 124
based on Salkind
(1997).
Sampling Method:
Stratified
proportional
sampling
Instrument:
Questionnaire
Measurement Scale: 6
point Likert Scale
(Alreck & Settle, 1995;
Dawes, 2008; etc.
Data Analysis:
SPSS v20 and
PLS-SEM with
Smart-PLS 2.0
Assessment of
Measurement
Model
• Examining individual item reliability: used outer loadings
• Ascertaining internal consistency reliability: Composite
reliability
• Ascertaining convergent validity: AVE
• Ascertaining discriminant validity: Fornell & Larcker
Criterion
Assessment of
Structural Model
• Assessing the significance of path coefficients
• Coefficient of Determination (𝑅2)
• Determining the effect size (𝑓2)
• Ascertaining the predictive relevance (𝑄2)
• Moderation Effect
Items loadings, Average Variance Extracted (AVE) and Reliabilities
Variable Code Loadings AVE Composite Reliability Cronbachs Alpha
Effective Strategy
Implementation ESI1 0.935 0.863 0.95 0.92
ESI2 0.941
ESI3 0.91
IT Capability ITK10 0.785 0.645 0.916 0.889
ITK5 0.709
ITK6 0.764
ITK7 0.846
ITK8 0.863
ITK9 0.843
IT Capability ITO1 0.823 0.732 0.916 0.877
ITO2 0.918
ITO3 0.836
ITO4 0.842
IT Capability ITOP11 0.801 0.649 0.928 0.908
ITOP12 0.622
ITOP13 0.838
ITOP14 0.811
ITOP15 0.828
ITOP16 0.882
ITOP17 0.832
Organizational Innovativeness OIV1 0.788 0.601 0.93 0.914
OIV10 0.782
OIV2 0.523
OIV3 0.786
OIV4 0.828
Strategic
Leadership
STLP10 0.741 0.503 0.934 0.923
STLP11 0.77
STLP13 0.707
STLP14 0.778
STLP15 0.7
STLP16 0.674
STLP17 0.685
STLP18 0.737
STLP19 0.727
STLP4 0.589
STLP6 0.636
STLP7 0.743
STLP8 0.618
STLP9 0.793
Latent Variable Correlations of the first-order variable
Variables 1 2 3 4 5 6
1. Effectiv Strategy Implementation .929
2. ITC Knowledge .527 .803
3. ITC Object .578 .732 .856
4. ITC Operation .674 .791 .729 .806
5. Organizational Innovativeness .805 .569 .551 .614 .775
6. Strategic Leadership .771 .604 .596 .641 .541 .709
Multicollinearity Assessment
Significance of the path coefficients
The study supported 4
Hypotheses, 1 hypothesis
was not supported
Tolerance < 0.20; VIF > 5
Tolerance lies btw 0.30 &
0.61, while VIF lies btw
3.37 & 1.64
The R² for the study is
69.7%. Based on Murphy et
al. (2014), the R² falls on
large categoryCoefficient determination (R²)
Effect size (f²); Predictive
Relevance (Q²).
2 Variables have a small effect size of
.046 & .056; while 1 Variable
medium effect size of .227
The Q2 value > than zero (.10)
indicating the relevance of the model.
Hypotheses Testing
Relationship Beta
value
Standard
Error
t
value
p value Decision
Strategic Leadership ->
Effective Strategy
Implementation
.235 .126 1.861 .033** Supported
Organizational
Innovativeness -> Effective
Strategy Implementation
.495 .122 4.051 .000*** Supported
Information Technology
Capability -> Effective
Strategy Implementation
.181 .087 2.083 .020** Supported
Organizational
Innovativeness * IT
Capability -> Effective
Strategy Implementation
-.153 .091 1.682 .048 Not
supported
Strategic Leadership * IT
Capability -> Effective
Strategy Implementation
.226 .102 2.217 .014** Supported
***p<.01, **p<.05
 Appropriate selection of variables to address the poor performance of strategy
implementation in Nigerian tertiary institution;
 Reconceptualization of ‘strategic leadership’ variable to encompasses of the leaders
in the Nigerian tertiary institution
 Integration of RBV, DC and CT theories to specifically assessed the predictors as
determinants of strategy implementation;
 Use of quantitative research design to further examined strategy implementation
practices in the context of Nigeria;
 Inclusion of IT Capability as Moderator to enhance strategy implementation;
 Increasing strategy implementation literature stream in the context of Africa and
Nigeria in Particular;
 The use of PLS-SEM path modelling as a second generation modelling technique;
 Prove the positive relationship between strategic leadership, organizational
innovativeness and effective strategy implementation;
 Deployment of the right moderating factor to fill the knowledge gap that presently
exist in Nigerian tertiary institutions concerning strategy implementation practices;
 Effective regulatory provisions that will ensure having strategic leaders at all level
of tertiary institutions;
 Encouragement of positive innovation culture among employees within the entire
tertiary institutions;
 Expose the public tertiary institutions to effective strategy implementation factors
that will enhance their performance;
 Assist the regulatory bodies on how to enhance the performance of public tertiary
institutions.
S/N Limitation of the study Suggestion for future research
1 Limited only to public tertiary
institutions in Nigerian
Extend to other institutions (such as private
tertiary institutions)
2 Focus on institutions located in
Kaduna state alone
Focus on all Monotechnic COE and
polytechnics in Nigeria
3 Use of cross sectional survey
design
Use of longitudinal design to better
understand development
4 Limited to only three variables that
effect strategy implementation
Employ several variables to determine
strategy implementation
5 Use questionnaire only Re-examine innovativeness as
multidimensional construct
ThankYou

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Viva slides

  • 1. EFFECT OF STRATEGIC LEADERSHIP, ORGANIZATIONAL INNOVATIVENESS, INFORMATION TECHNOLOGY CAPABILITY ON EFFECTIVE STRATEGY IMPLEMENTATION BY Ahmad Aliyu Palladan ( 96041) PhD Student (Management) Supervisor: Dr Kadzrina Binti Abdulkadir Dr Chong Yen Wan School of Business Management 4/16/2017
  • 2. Presentation Outline Related Literature and Conceptual Framework Introduction Background & Problem Statement, Research Question, Research Objective Related Literature, theories and conceptual framework Research design; Population & sample & sample design ; Data Collection Methods & analysis Research Methodology Research Findings and Discussion PLS Measurement Model Result, Structural Model Result, Implications, Limitations & Suggestions
  • 3.  One of the most central areas of concern among contemporary organizational theorists and practitioners is organizational effectiveness. A good mechanism for achieving it is effective strategy implementation (Sharbat & Fuqaha, 2014; Ali & Hadi, 2012);  The dramatical changes taking place in the higher education sector globally is compelling educational managers to switch from conventional style of management to more creative and dynamic management practices (Kazee, 2010);  This is due to the high level of competition taking place in the sector and persistence demand for increase in quality from different stakeholders as well as decline in government funding;  In Nigeria a lot of gatherings took place that were aimed at searching for ways that will facilitate the improvement of tertiary institutions performance (The Nigeria Education Fair, 2014);
  • 4.  Today, strategic management is gaining more and more importance as a tool for managing public tertiary institutions in Nigeria for better results (Omebe, & Nwogbo, 2015; Odiba, 2012);  A good strategic plan if effectively implemented will certainly give an organization superior competitive advantage and increase its performance (Birasnav, 2014);  The main challenge in strategic management process is associated with strategy execution (Ali & Hadi, 2012);  Strategy execution is a process by which strategies are put into concrete action through improvement of programs, budgets, and actions (Wheelen, Hunger, Hoffman & Bamford, 2015);
  • 5.  Tertiary education institutions in Nigeria consist of Universities, Polytechnics, Colleges of Education and other institutions of higher learning that offers correspondence courses, diplomas and certificates (Famade, Omiyale, & Adebola, 2015).
  • 6. Liberalization of the tertiary education space that led to the emergence of huge number of private universities, polytechnics and colleges of education (Oyediji, 2012); Outflow of Nigerian students abroad is another issue. According to Deji-Folutile (2014), the former Nigerian central bank governor, Malam Sanusi Lamido Sanusi lament that in Ghana alone, there are over 71,000 Nigerian students paying almost one billion US dollars annually; Exams Ethics International, a non- governmental organization had confirmed that the expenses of Nigerian students abroad are more than NGN1.5 trillion annually (Nigeria Spends, 2014); Generally, empirical findings on effective strategy implementation from different organizations are therefore far from encouraging (Cater & Pucko, 2010).
  • 7. Theoretical Research Gap Previous strategic leadership studies on strategy implementation are based on the single-actor or ‘hero’ e.g. (Fourie, 2009; O’Reilly et al , 2010; Araujo et al,2013; Omodi & Ombui 2013; Lowry ,2015; Gichinga, 2016) (Kriger & Zhovtobryukh, 2013). The current study include IT capability as a moderating variable. Hitherto, Khan & Kahlique, (2014); Hutzschenreuter, Pedersen andVolberda, (2007) called for future researches in strategy implementation to consider employing a moderator Previous studies were largely conducted in the western world and Asia (Arasa & K’obonyo 2012; Khan & Khalique 2014; Palladan, Abdul Kadir & Chong, 2016); Studies focused more on profit making organizations and in Universities only e.g. (Luque 2013; Thomas 2013; Akbapour et al 2014;Shafarzadeh et al 2015) (Jiang & Carpenter, 2013).
  • 8. Research Questions Research Objectives 1. What is the effect of strategic leadership on effective strategy implementation? 1. To assess the effect of strategic leadership on effective strategy implementation. 2. What is the effect of organizational innovativeness on effective strategy implementation? 2. To determine the effect of organizational innovativeness on effective strategy implementation. 3. How does IT capability effect strategy implementation? 3. To evaluate the effect of IT capability on effective strategy implementation 4. Does IT capability moderate the relationship between strategic leadership 4. To assess the moderating effect of IT capability on the relationship between
  • 9. RBV • Resource based view theory(Barney, 1991), underpinned this study. RVB implies that organizations can attain competitive advantage using organizational resources. • Organizational resources consist of all tangible and intangible, as well as human and nonhuman that are owned or controlled by the organization (Barney, 1991; Wernerfelt, 1984). DC • Dynamic Capability (Teece, Pisano & Shuen 1997; Pavlous, 2004; Eisenhardt & Martin, 2000) is the first supporting theory for this study. • The RBV has been criticized for disregarding factors surrounding resources by assuming that resources simply exist (Teece, Pisano & Shuen, 1997). CT • Complementarity Theory (Barua, Lee & Whinston, 1996) is the second supporting theory. • RBV fails to sufficiently consider the fact that is difficult for resources to act in isolation in creating and maintaining competitive advantages (Chan et al., 2004; Wade & Hulland, 2004).
  • 11. Methodology Research Design: Quantitative (Creswell, 2014): survey research design. Unit of Analysis: Organization Respondent: Deans Population: 143 Deans from Public Tertiary Institutions. Sample Size: 104 obtained using Dilman (2007); increase to 124 based on Salkind (1997). Sampling Method: Stratified proportional sampling Instrument: Questionnaire Measurement Scale: 6 point Likert Scale (Alreck & Settle, 1995; Dawes, 2008; etc. Data Analysis: SPSS v20 and PLS-SEM with Smart-PLS 2.0
  • 12. Assessment of Measurement Model • Examining individual item reliability: used outer loadings • Ascertaining internal consistency reliability: Composite reliability • Ascertaining convergent validity: AVE • Ascertaining discriminant validity: Fornell & Larcker Criterion Assessment of Structural Model • Assessing the significance of path coefficients • Coefficient of Determination (𝑅2) • Determining the effect size (𝑓2) • Ascertaining the predictive relevance (𝑄2) • Moderation Effect
  • 13. Items loadings, Average Variance Extracted (AVE) and Reliabilities Variable Code Loadings AVE Composite Reliability Cronbachs Alpha Effective Strategy Implementation ESI1 0.935 0.863 0.95 0.92 ESI2 0.941 ESI3 0.91 IT Capability ITK10 0.785 0.645 0.916 0.889 ITK5 0.709 ITK6 0.764 ITK7 0.846 ITK8 0.863 ITK9 0.843
  • 14. IT Capability ITO1 0.823 0.732 0.916 0.877 ITO2 0.918 ITO3 0.836 ITO4 0.842 IT Capability ITOP11 0.801 0.649 0.928 0.908 ITOP12 0.622 ITOP13 0.838 ITOP14 0.811 ITOP15 0.828 ITOP16 0.882 ITOP17 0.832 Organizational Innovativeness OIV1 0.788 0.601 0.93 0.914 OIV10 0.782 OIV2 0.523 OIV3 0.786 OIV4 0.828
  • 15. Strategic Leadership STLP10 0.741 0.503 0.934 0.923 STLP11 0.77 STLP13 0.707 STLP14 0.778 STLP15 0.7 STLP16 0.674 STLP17 0.685 STLP18 0.737 STLP19 0.727 STLP4 0.589 STLP6 0.636 STLP7 0.743 STLP8 0.618 STLP9 0.793
  • 16. Latent Variable Correlations of the first-order variable Variables 1 2 3 4 5 6 1. Effectiv Strategy Implementation .929 2. ITC Knowledge .527 .803 3. ITC Object .578 .732 .856 4. ITC Operation .674 .791 .729 .806 5. Organizational Innovativeness .805 .569 .551 .614 .775 6. Strategic Leadership .771 .604 .596 .641 .541 .709
  • 17. Multicollinearity Assessment Significance of the path coefficients The study supported 4 Hypotheses, 1 hypothesis was not supported Tolerance < 0.20; VIF > 5 Tolerance lies btw 0.30 & 0.61, while VIF lies btw 3.37 & 1.64 The R² for the study is 69.7%. Based on Murphy et al. (2014), the R² falls on large categoryCoefficient determination (R²) Effect size (f²); Predictive Relevance (Q²). 2 Variables have a small effect size of .046 & .056; while 1 Variable medium effect size of .227 The Q2 value > than zero (.10) indicating the relevance of the model.
  • 18. Hypotheses Testing Relationship Beta value Standard Error t value p value Decision Strategic Leadership -> Effective Strategy Implementation .235 .126 1.861 .033** Supported Organizational Innovativeness -> Effective Strategy Implementation .495 .122 4.051 .000*** Supported Information Technology Capability -> Effective Strategy Implementation .181 .087 2.083 .020** Supported Organizational Innovativeness * IT Capability -> Effective Strategy Implementation -.153 .091 1.682 .048 Not supported Strategic Leadership * IT Capability -> Effective Strategy Implementation .226 .102 2.217 .014** Supported ***p<.01, **p<.05
  • 19.  Appropriate selection of variables to address the poor performance of strategy implementation in Nigerian tertiary institution;  Reconceptualization of ‘strategic leadership’ variable to encompasses of the leaders in the Nigerian tertiary institution  Integration of RBV, DC and CT theories to specifically assessed the predictors as determinants of strategy implementation;  Use of quantitative research design to further examined strategy implementation practices in the context of Nigeria;  Inclusion of IT Capability as Moderator to enhance strategy implementation;  Increasing strategy implementation literature stream in the context of Africa and Nigeria in Particular;  The use of PLS-SEM path modelling as a second generation modelling technique;
  • 20.  Prove the positive relationship between strategic leadership, organizational innovativeness and effective strategy implementation;  Deployment of the right moderating factor to fill the knowledge gap that presently exist in Nigerian tertiary institutions concerning strategy implementation practices;  Effective regulatory provisions that will ensure having strategic leaders at all level of tertiary institutions;  Encouragement of positive innovation culture among employees within the entire tertiary institutions;  Expose the public tertiary institutions to effective strategy implementation factors that will enhance their performance;  Assist the regulatory bodies on how to enhance the performance of public tertiary institutions.
  • 21. S/N Limitation of the study Suggestion for future research 1 Limited only to public tertiary institutions in Nigerian Extend to other institutions (such as private tertiary institutions) 2 Focus on institutions located in Kaduna state alone Focus on all Monotechnic COE and polytechnics in Nigeria 3 Use of cross sectional survey design Use of longitudinal design to better understand development 4 Limited to only three variables that effect strategy implementation Employ several variables to determine strategy implementation 5 Use questionnaire only Re-examine innovativeness as multidimensional construct