Open Access
Subscription Access
Open Access
Subscription Access
Measuring Organizational Efficiency and Effectiveness
Subscribe/Renew Journal
The purpose of this research is two-fold. We first want to demonstrate the use of measures of efficiency and effectiveness to create a typology that is useful for classification of organizational performance. The research further reveals the relationships between the proposed performance typology and various business-level strategies. The findings of this research indicate that strategy selection impacts the proposed performance typology of efficiency and effectiveness. The study concludes with a discussion of our findings and addresses directions for future research.
Keywords
Strategy-performance Relationship, Performance Typology, Business Strategy
User
Information
- Bagozzi, R. P. and Phillips, L. W. (1982), Representing and Testing Organizational Theories: A Holistic Construct, Administrative Science Quarterly 17: 459-489.
- Barnard, C. (1939), The Functions of the Executive, Harvard University Press, Cambridge, MA.
- Cameron, K. (1986), A Study of Organizational Effectiveness and its Predictors, Management Science 32: 87-112.
- Chakravarthy, B. S. (1986), Measuring Strategic Performance, Strategic Management Journal 7: 437-458.
- Chamberlain, E.H. (1968), The Theory of Monopolistic Competition, Harvard University Press, Cambridge.
- Churchill, G.A. (1979), A Paradigm for Developing Better Measures of Marketing Constructs, Journal of Marketing Research 16: 64-73.
- Cool, K., and Schendel, D. (1987), Strategic Group Formation and Performance, Management Science 33: 1102-1124.
- Conant, J. S., Mokwa, M. P., and Varadarajan, P. R. (1990), Strategic Types, Distinctive Marketing Competencies and Organizational Performance: A Multiple Measures-based Study, Strategic Management Journal 11: 365-383.
- Cronbach, L.J. (1951), Coefficient Alpha and Internal Structure of Tests, Psychometrika 16(3): 297-334.
- Cyert, R.M. and March, J. (1963), A Behavioral Theory of the Firm, Prentice-Hall, Englewood Cliffs.
- Dess, G. G., Newport, S., and Rasheed A. M. (1993), Configuration Research in Strategic Management: Key Issues and Suggestions, Journal of Management 19(4): 775-795.
- Dess, G. G. and Davis, P. S. (1984), Generic Strategies as Determinants of Strategic Group Membership and Organizational Performance, Academy of Management Journal 27: 467-488.
- Fiegenbaum, A., Hart, S., and Schendel, D. (1996), Strategic Reference Point Theory, Strategic Management Journal 17(3): 219-236.
- Ford, J. D. and Schellenberg, D. A. (1982), Conceptual Issues of Linkage in the Assessment of Organizational Performance, Academy of Management Review 7: 49-58.
- Hambrick, D. C. (1984), Taxonomic Approaches to Studying Strategy: Some Conceptual and Methodological Issues, Journal of Management 10 (1): 27-43.
- Hill, C. W. L. (1988), Differentiation versus Low Cost or Differentiation and Low Cost: A Contingency Framework, Academy of Management Journal 13: 401-412.
- Jones, G. R., and Butler, J. E. (1988), Costs, Revenue, and Business-level Strategy, Academy of Management Review 13: 202-213.
- Katz, D. and Kahn, R. L. (1978), The Social Psychology of Organizations, Wiley, New York.
- Kirchoff, B. A. (1977), Organizational Effectiveness Measures and Policy Research, Academy of Management Review 2 (3): 347-355.
- Keats, B. N. (1983), On the Measurement of Strategic Performance, paper presented at the Third Annual Conference of the Strategic Management Society, Paris.
- Kerlinger, F.N. (1973), Foundations of Behavioral Research (2nd edition), Holt Rinehard and Winston, New York.
- Kotabe, M. (1998), Efficiency vs. Effectiveness Orientation of Global Sourcing: A Comparison of US and Japanese Multinational Companies, Academy of Management Executive 12: 107-119.
- Lenz, R.T. (1978), Strategic Interdependence and Organizational Performance: Patterns in One Industry, an unpublished Ph.D. dissertation, Indiana University.
- Mahoney, T. A. (1988), Productivity Defined: The Relativity of Efficiency, Effectiveness and Change, in J. P. Campbell, R. J.
- Campbell, and Assoc., Productivity in Organizations: New Perspectives from Industrial and Organizational Psychology, pp. 230-261, Jossey-Bass, San Francisco.
- Mechanic, D. (1963), Some Considerations in the Methodology of Organizational Studies, in H. J. Leavitt (ed.), The Social Science of Organizations, Prentice-Hall, Englewood Cliffs, NJ.
- Miles, R. E. and Snow, C. C. (1978), Organizational Strategy, Structure and Process, McGraw-Hill, New York.
- Miller, D. (1988), Relating Porter’s Business Strategies to Environment and Structure: Analysis and Performance Implications, Academy of Management Journal 1: 280-308.
- Miller, D. (1981), Toward a New Contingency Approach: The Search for Organizational Gestalts, Journal of Management Studies 18(1): 1-26.
- Nunnally, J.C. (1978), Psychometric Theory, McGraw-Hill, New York.
- Ostroff, C. and Schmitt, N. (1993), Configurations of Organizational Effectiveness and Efficiency, Academy of Management Journal 36 (6): 1345-1361.
- Porter, M. E. (1980), Competitive Strategy, Free Press, New York.
- Snow, C.C. and Hambrick, D.C. (1980), Measuring Organizational Strategies: Some Theoretical and Methodological Problems, Academy of Management Review 5: 527-538.
- Smith, K. G., Gutherie, J. P. and Chen, M. (1989), Strategy, Size, and Performance, Organization Studies 10 (1): 63-81.
- Steers, R. M. (1975), Problems in the Measurement of Organizational Effectiveness, Administrative Science Quarterly 20: 546-558.
- Venkatraman, N. and Grant, J.H. (1986), Construct Measurement in Organizational Strategy Research: A Critique and Proposal, Academy of Management Review 11: 71-87.
- Venkatraman, N. and Ramanujam, V. (1985), Construct Validation of Business Economic Performance Measures: A Structural Equation Modeling Approach, paper presented at the 45th Annual Meeting of the Academy of Management, San Diego.
Abstract Views: 603
PDF Views: 1