The Effect of 'Simplicity' on the Strategy-Performance Relationship: A Note

22 Pages Posted: 6 Nov 2006

See all articles by G. T. Lumpkin

G. T. Lumpkin

Texas Tech University - Rawls College of Business

Gregory G. Dess

University of Texas at Dallas - Naveen Jindal School of Management

Abstract

The concept of simplicity (Miller, 1993) in strategy making suggests a preoccupation with a single goal, strategic activity, or function. Prior research indicates that simplicity may, under certain conditions, benefit firm performance, but it may also limit an organization's perspective and blind it to the breadth and variety it needs to sustain its success. This field study investigates the role of simplicity as a moderator of strategy-performance relationships. Using moderated hierarchical regression analysis, simplicity was found to enhance performance among firms using cost leadership and focus strategies among a sample of 32 firms. The findings suggest that the strategy making styles and practices of strategic managers influence the character of the whole organization and often have an important impact on organizational outcomes.

Suggested Citation

Lumpkin, G. T. and Dess, Gregory G., The Effect of 'Simplicity' on the Strategy-Performance Relationship: A Note. Journal of Management Studies, Vol. 43, No. 7, pp. 1583-1604, November 2006, Available at SSRN: https://ssrn.com/abstract=942395 or http://dx.doi.org/10.1111/j.1467-6486.2006.00652.x

G. T. Lumpkin (Contact Author)

Texas Tech University - Rawls College of Business ( email )

Lubbock, TX 79409
United States

Gregory G. Dess

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States
(972) 883-4439 (Phone)

HOME PAGE: http://som.utdallas.edu/faculty/faculty_dess.htm

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