Blowing in the Wind: A Study for Granger-Causality between Managerial Strategy and Organizational Performance

Public Management Review 19 (5): 686-704, 2017. DO/10.1080/14719037.2016.1200120.

31 Pages Posted: 9 Apr 2019

See all articles by Ohbet Cheon

Ohbet Cheon

Houston Methodist Research Institute

Seung-Ho An

University of Arizona - School of Government and Public Policy

Date Written: 2017

Abstract

Mixed findings on the impact of strategy on performance suggest that it is necessary to investigate the causal relationship between strategy and performance. We theorize that past negative performance may motivate public managers to be defenders, which will enable them to focus on core tasks. Using Texas school district data, we explore the reverse-causality between strategy and performance through Granger-Causality test. Our findings suggest that poorly performing public organizations are more likely to be defenders, though past strategy does not significantly influence performance. The findings contribute to the literature by demonstrating that the strategy-performance link may run in reverse direction.

Keywords: Managerial Strategy, Organizational Performance, Granger-Causality

Suggested Citation

Cheon, Ohbet and An, Seung-Ho, Blowing in the Wind: A Study for Granger-Causality between Managerial Strategy and Organizational Performance (2017). Public Management Review 19 (5): 686-704, 2017. DO/10.1080/14719037.2016.1200120.. Available at SSRN: https://ssrn.com/abstract=3353867

Ohbet Cheon

Houston Methodist Research Institute ( email )

6670 Bertner Ave
Houston, 77030
United States

Seung-Ho An (Contact Author)

University of Arizona - School of Government and Public Policy

315 Social Science Building
Tucson, AZ 85721
United States

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