Despite the increasing sophistication of the literature on strategic consensus and the compelling arguments linking it to organizational performance, empirical research has produced mixed findings. To address this conundrum, we examine the contingent role of strategic alignment—that is, to what extent decision makers place importance on strategic priorities that are responsive to, or fit, the demands of the external environment faced by the organization—as a salient missing link. Our findings from a sample of 349 university faculty members in 63 academic departments suggest that the consensus–performance relationship is stronger for lower levels of strategic alignment, whereas at higher levels of alignment, consensus appears to have little effect. Our discussion traces implications of these findings for existing theory and future research.
AmasonA. C. (1996) “Distinguishing the Effects of Functional and Dysfunctional Conflict on Strategic Decision Making: Resolving a Paradox for Top Management Teams,” Academy of Management Journal39(1): 123–48.
AndrewsK. R. (1971) The Concept of Corporate Strategy. Homewood, IL: Richard D. Irwin, Inc.
4.
ArendtL. A.PriemR. L.NdoforH. A. (2005) “A CEO-Adviser Model of Strategic Decision Making,” Journal of Management31(5): 680–99.
5.
ArgyresN. S.BercovitzJ.MayerK. J. (2007) “Complementarity and Evolution of Contractual Provisions: An Empirical Study of IT Services Contracts,” Organization Science18(1): 3–19.
6.
BaldridgeJ. V. (1971) Power and Conflict in the University: Research in the Sociology of Complex Organizations. New York: John Wiley.
7.
BaoY.FongE.ZhouK. Z. (2008) “Strategic Consensus and Firm Performance: Beyond Top Management Team,” Working Paper.
8.
BasingerJ. (2003) “More Power for Provosts,” The Chronicle of Higher Education49(33): A26–8.
9.
BaumC. F.SchafferM. E.StillmanS. (2002) “IVENDOG: Stata Module to Calculate Durbin-Wu-Hausman Endogeneity Test after ivreg,” Boston College Department of Economics. Available at: http://ideas.repec.org/c/boc/bocode/s429401.html (accessed 16 August 2009).
10.
BeckL.JanssensW.DebruyneM.LommelenT. (2011) “A Study of the Relationships between Generation, Market Orientation, and Innovation in Family Firms,” Family Business Review24(3): 252–72.
11.
BlieseP. D. (2000) “Within-Group Agreement, Non-Independence, and Reliability,” in KleinK. J.KozlowskiS. W. J. (eds) Multilevel Theory, Research and Methods in Organizations, pp. 349–81. San Francisco, CA: Jossey-Bass.
12.
BourgeoisL. J. (1980) “Performance and Consensus,” Strategic Management Journal1: 227–48.
13.
BourgeoisL. J. (1985) “Strategic Goals, Perceived Uncertainty, and Economic Performance in Volatile Environments,” Academy of Management Journal28(3): 548–73.
14.
BowmanC.AmbrosiniV. (1997) “Perceptions of Strategic Priorities, Consensus, and Firm Performance,” Journal of Management Studies34(2): 241–58.
15.
CameronK. (1978) “Measuring Organizational Effectiveness in Institutions of Higher Education,” Administrative Science Quarterly23(4): 604–32.
16.
ChakravarthyB. S.WhiteR. E. (2001) “Strategy Process: Forming, Implementing and Changing Strategies,” in PettigrewA.ThomasH.WhittingtonR. (eds) Handbook of Strategy and Management, pp. 182–205. London: Sage.
17.
ChanD. (2009) “So Why Ask Me? Are Self-Report Data Really That Bad?” in LanceC. E.VandenbergR. J. (eds) Statistical and Methodological Myths and Urban Legends, pp. 309–36. New York: Routledge.
18.
ChandlerA. (1962) Strategy and Structure. Cambridge, MA: MIT Press.
19.
ChangC. H.RosenC. C.LevyP. E. (2009) “The Relationship between Perceptions of Organizational Politics and Employee Attitudes, Strain, and Behavior: A Meta-Analytic Examination,” Academy of Management Journal52(4): 779–801.
20.
ChornN. H. (1991) “The ‘Alignment’ Theory: Creating Strategic Fit,” Management Decision29(1): 20–4.
21.
CohenJ.CohenP. (1993) Applied Multiple Regression/Correlation Analysis of Behavioral Sciences, 2nd edn.Hillsdale, NJ: Lawrence Erlbaum Associates.
22.
ColbertA. E.Kristof-BrownA. L.BradleyB. H.MurrayR. B. (2008) “CEO Transformational Leadership: The Role of Goal Importance Congruence in Top Management Teams,” Academy of Management Journal51(1): 81–96.
23.
ColquittJ. A.NoeR. A.JacksonC. L. (2002) “Justice in Teams: Antecedents and Consequences of Procedural Justice Climate,” Personnel Psychology55: 83–109.
24.
ConwayJ. M.LanceC. E. (2010) “What Reviewers Should Expect from Authors Regarding Common Method Bias in Organizational Research,” Journal of Business and Psychology25: 325–34.
25.
CyertR. M.MarchJ. G. (1963) A Behavioral Theory of the Firm, 2nd edn.Malden, MA: Blackwell Publishing, Inc.
26.
DavidsonR.MackinnonJ. (1983) Estimation and Interference in Economics. New York: Oxford University Press.
27.
De DreuC. K. W.Van VianenA. E. M. (2001) “Managing Relationship Conflict and the Effectiveness of Organizational Teams,” Journal of Organizational Behavior22: 309–28.
28.
DessG. G. (1987) “Consensus on Strategy Formulation and Organizational Performance: Competitors in a Fragmented Industry,” Strategic Management Journal8: 259–77.
29.
DessG. G.OrigerN. K. (1987) “Environment, Structure, and Consensus in Strategy Formulation: A Conceptual Integration,” Academy of Management Review12(2): 313–30.
30.
DiMaggioP. J.PowellW. W. (1983) “The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields,” American Sociological Review48: 147–60.
31.
DobniC. B.LuffmanG. (2003) “Determining the Scope and Impact of Market Orientation Profiles on Strategy Implementation and Performance,” Strategic Management Journal24: 577–85.
32.
DooleyR. S.FryxellG. E. (1999) “Attaining Decision Quality and Commitment from Dissent: The Moderating Effects of Loyalty and Competence in Strategic Decision Making Team,” Academy of Management Journal42(4): 389–402.
33.
DooleyR. S.FryxellG. E.JudgeW. Q. (2000) “Belaboring the Not-So-Obvious: Consensus, Commitment, and Strategy Implementation Speed and Success,” Journal of Management26(6): 1237–57.
34.
DyerW. G.JrSánchezM. (1998) “Current State of Family Business Theory and Practice as Reflected in Family Business Review 1988–1997,” Family Business Review11: 287–96.
35.
EvansM. G. (1985) “A Monte Carlo Study of the Effects of Correlated Method Variance in Moderated Multiple Regression Analysis,” Organizational Behavior and Human Decision Processes36: 305–23.
36.
FerrisG. R.AdamsG.KolodinskyR. W.HochwarterW. A.AmmeterA. P. (2002) “Perceptions of Organizational Politics: Theory and Research Directions,” in YammarinoF. J.DansereauF. (eds) The Many Faces of Multi-Level Issues (Research in Multi Level Issues, vol. 1), pp. 179–254. Emerald Group Publishing Limited Bingley, UK.
37.
FloydS. W.WooldridgeB. (1992) “Managing Strategic Consensus: The Foundation of Effective Implementation,” Academy of Management Executive6(4): 27–39.
38.
FredricksonJ. W.MitchellT. R. (1984) “Strategic Decision Process: Comprehensiveness and Performance in an Industry with an Unstable Environment,” Academy of Management Journal27(2): 399–423.
39.
GayleD. J.TewarieB.WhiteA. Q.Jr (2003) Governance in the Twenty-First-Century University: Approaches to Effective Leadership and Strategic Management (ASHE-ERIC Higher Education Report), vol. 30, issue 1. San Francisco, CA: Jossey-Bass.
40.
GeorgeJ. M. (1990) “Personality, Affect, and Behavior in Groups,” Journal of Applied Psychology75(2): 107–16.
41.
GinsbergA.VenkatramanN. (1985) “Contingency Perspectives of Organizational Strategy: A Critical Review of the Empirical Research,” Academy of Management Review10(3): 421–34.
42.
GioiaD. A.ThomasJ. B. (1996) “Identity, Image, and Issue Interpretation: Sensemaking during Strategic Change in Academia,” Administrative Science Quarterly41: 370–403.
43.
GioiaD. A.ThomasJ. B.ClarkS. M.ChittipeddiK. (1994) “Symbolism and Strategic Change in Academia: The Dynamics of Sensemaking and Influence,” Organization Science5(3): 363–83.
44.
GlickW. H. (1985) “Conceptualizing and Measuring Organizational Psychological Climate: Pitfalls in Multi-Level Research,” Academy of Management Review10(3): 601–16.
45.
González-BenitoJ.AguinisH.BoydB. K.Suárez-GonzálezI. (2012) “Coming to Consensus on Strategic Consensus: A Mediated Moderation Model of Consensus and Performance,” Journal of Management38(6): 1685–714.
46.
GranataD.ChiricoF. (2010) “Measures of Value in Acquisitions: Family versus Non-Family Firms,” Family Business Review23: 341–54.
47.
GresovC.DrazinR.Van de VenA. (1989) “Work-Unit Task Uncertainty, Design and Morale,” Organization Studies10(1): 45–62.
48.
GuthW. D.MacMillanI. C. (1986) “Strategy Implementation versus Middle Management Self-Interest,” Strategic Management Journal7: 313–27.
49.
HairJ. F.BlackB.BabinB.AndersonR. E. (2010) Multivariate Data Analysis, 6th edn.Upper Saddle River, NJ: Prentice Hall.
50.
HambrickD. C. (1981) “Specialization of Environmental Scanning Activities among Upper Level Executives,” Journal of Management Studies18(3): 299–320.
51.
HambrickD. C. (1983a) “High Profit Strategies in Mature Capital Goods Industries: A Contingency Approach,” Academy of Management Journal26(4): 687–707.
52.
HambrickD. C. (1983b) “Some Tests of the Effectiveness and Functional Attributes of Miles and Snow’s Strategic Types,” Academy of Management Journal26(1): 5–26.
53.
HamiltonB. H.NickersonJ. A. (2003) “Correcting for Endogeneity in Strategic Management Research,” Strategic Organization1(1): 51–78.
54.
HannanM. T.FreemanJ. (1989) Organizational Ecology. Cambridge, MA: Harvard University Press.
55.
HardyC.LangleyA.MintzbergH.RoseJ. (1983). “Strategy formation in the university setting,” The Review of Higher Education6(4): 407–33.
56.
HittM. A.IrelandR. D.StadterG. (1982) “Functional Importance and Company Performance: Moderating Effects of Grand Strategy and Industry Type,” Strategic Management Journal3(4): 315–30.
57.
HoferC. W. (1975) “Toward a Contingency Theory of Business Strategy,” Academy of Management Journal18(4): 784–810.
HomburgC.KrohmerH.WorkmanJ. P. (1999) “Strategic Consensus and Performance, the Role of Strategy Type and Market-Related Dynamism,” Strategic Management Journal20: 339–57.
60.
HowellJ. P.DorfmanP. W.KerrS. (1986) “Moderator Variables in Leadership Research,” Academy of Management Review11(1): 88–102.
61.
HutzschenreuterT.KleindienstI. (2006) “Strategy-Process Research: What Have We Learned and What Is Still to Be Explored,” Journal of Management32(5): 673–720.
62.
IaquintoA. L.FredricksonJ. W. (1997) “TMT Agreement about the Strategic Decision Process: A Test of Some of Its Determinants and Consequences,” Strategic Management Journal18: 63–75.
63.
JamesL. R. (1982) “Aggregation Bias in Estimates of Perceptual Agreement,” Journal of Applied Psychology67(2): 219–29.
64.
JamesL. R.DemareeR. G.WolfG. (1984) “Estimating Within-Group Interrater Reliability with and without Response Bias,” Journal of Applied Psychology69(1): 85–98.
65.
JanisI. L. (1972) Victims of Groupthink: A Psychological Study of Foreign-Policy Decisions and Fiascoes. Boston, MA: Houghton Mifflin.
66.
JarzabkowskiP. (2004) “Strategy as Practice: Recursiveness, Adaptation, and Practices-In-Use,” Organization Studies25(4): 529–60.
67.
JauchL. R.OsbornR. N.GlueckW. F. (1980) “Short Term Financial Success in Large Business Organizations: The Environment-Strategy Connection,” Strategic Management Journal1: 49–63.
JoshiM. P.KathuriaR.PorthS. J. (2003) “Alignment of Strategic Priorities and Performance: An Integration of Operations and Strategic Management Perspectives,” Journal of Operations Management21(3): 353–69.
70.
KacmarK. M.BaronR. A. (1999) “Organizational Politics: The State of the Field, Links to Related Processes, and an Agenda for Future Research,” in FerrisG. R. (ed.) Research in Personnel and Human Resources Management, pp. 1–39. Elsevier Science/JAI Press, Greenwich, CT.
71.
KellermannsF. W.FloydS. (2005) “Strategic Consensus and Constructive Confrontation: Unifying Forces in the Resource Accumulation Process,” in FloydS.RossJ.JacobsC.KellermannsF. W. (eds) Innovating Strategy Process, pp. 149–62. Oxford: Blackwell Publishing, Inc.
72.
KellermannsF. W.WalterJ.FloydS. W.LechnerC.ShawJ. (2011) “To Agree or Not to Agree? A Meta-Analytical Review of the Relationship between Strategic Consensus and Organizational Performance,” Journal of Business Research64(2): 126–33.
73.
KellermannsF. W.WalterJ.LechnerC.FloydS. W. (2005) “The Lack of Consensus about Strategic Consensus: Advancing Theory and Research,” Journal of Management31(5): 719–37.
74.
KnightD.PearceC. L.SmithK. G.OlianJ. D.SimsH. P.SmithK. A.FloodP. (1999) “Top Management Team Diversity, Group Process, and Strategic Consensus,” Strategic Management Journal20: 445–65.
75.
KraatzM. S.ZajacE. J. (2001) “How Organizational Resources Affect Strategic Change and Performance in Turbulent Environments: Theory and Evidence,” Organization Science12(5): 632–57.
76.
LanceC. E.DawsonB.BirkelbachD.HoffmanB. J. (2010) “Method Effects, Measurement Error, and Substantive Conclusions,” Organizational Research Methods13(3): 435–55.
77.
LawrenceP. R.LorschJ. W. (1967) “Differentiation and Integration in Complex Organizations,” Administrative Science Quarterly12: 1–47.
78.
LechnerC.FloydS. W. (2012) “Group Influence Activities and the Performance of Strategic Initiatives,” Strategic Management Journal33(5): 478–95.
79.
LeeA. S.BaskervilleR. L. (2003) “Generalizing Generalizability in Information Systems Research,” Information Systems Research14(3): 221–43.
80.
LindellM. K.BrandtC. J. (2000) “Climate Quality and Climate Consensus as Mediators of the Relationship between Organizational Antecedents and Outcomes,” Journal of Applied Psychology85(3): 331–48.
81.
LylesM. A. (1987) “Defining Strategic Problems: Subjective Criteria of Executives,” Organization Studies8(3): 263–79.
82.
McFadyenM. A.CannellaA. A.Jr (2005) “Knowledge Creation and the Location of University Research Scientists’ Interpersonal Exchange Relations: Within and beyond the University,” Strategic Organization3: 131–55.
83.
McGrathR. G. (2001) “Exploratory Learning, Innovation Capacity and Managerial Oversight,” Academy of Management Journal44(1): 118–31.
84.
MasonR. O.MitroffI. I. (1981) Challenging Strategic Planning Assumptions: Theory, Cases and Techniques. New York: John Wiley.
85.
MenonA.BharadwajS. G. (1996) “The Quality and Effectiveness of Marketing Strategy: Effects of Functional and Dysfunctional Conflict in Intraorganizational Relationships,” Journal of the Academy of Marketing Science24(4): 299–313.
86.
MeyerJ. W.RowanB. (1977–1978) “Institutionalized Organizations: Formal Structure as Myth and Ceremony,” American Journal of Sociology83(2): 364–85.
87.
MichieS.DooleyR. S.FryxellG. E. (2006) “Unified Diversity in Top-Level Teams: Enhancing Collaboration and Quality in Strategic Decision Making,” International Journal of Organizational Analysis14: 130–49.
88.
MilesR. E.SnowC. C. (1978) Organizational Strategy, Structure and Process. New York: McGraw-Hill.
89.
MillerD. (1988) “Relating Porter’s Business Strategies to Environment and Structure: Analysis and Performance Implications,” Academy of Management Journal31(2): 280–308.
90.
MillerD.FriesenP. H. (1982) “Structural Change and Performance: Quantum versus Piecemeal-Incremental Approaches,” Academy of Management Journal25(4): 867–92.
91.
MillikenF. J. (1990) “Perceiving and Interpreting Environmental Changes: An Examination of College Administrators’ Interpretation of Changing Demographics,” Academy of Management Journal33(1): 42–63.
92.
MintzbergH. (1985) “The Organization as Political Arena,” Journal of Management Studies22(2): 133–54.
93.
MintzbergH. P. (1978) “Patterns in Strategy Formation,” Management Science24(9): 934–48.
94.
MintzbergH.RaisinghaniD.TheoretA. (1976) “The Structure of Unstructured Decision Processes,” Administrative Science Quarterly21: 246–75.
95.
MooneyA. C.HolahanP. J.AmasonA. C. (2007) “Don’t Take It Personally: Exploring Cognitive Conflict as a Mediator of Affective Conflict,” Journal of Management Studies44(5): 733–58.
96.
NamanJ. L.SlevinD. P. (1993) “Entrepreneurship and the Concept of Fit: A Model and Empirical Tests,” Strategic Management Journal14: 137–53.
97.
NoorderhavenN. G.BendersJ.KeizerA. B. (2007) “Comprehensiveness versus Pragmatism: Consensus at the Japanese-Dutch Interface,” Journal of Management Studies44(8): 1349–70.
OlsonB. J.ParayitamS.BaoY. (2007) “Strategic Decision Making: The Effects of Cognitive Diversity, Conflict, and Trust on Decision Outcomes,” Journal of Management33(2): 196–222.
100.
PagellM.KrauseD. R. (2002) “Strategic Consensus in the Internal Supply Chain: Exploring the Manufacturing-Purchasing Link,” International Journal of Production Research40(13): 3075–92.
101.
PaineF. T.AndersonC. R. (1977) “Contingencies Affecting Strategy Formulation and Effectiveness: An Empirical Study,” Journal of Management Studies14(2): 147–58.
102.
PappasJ.FlahertyK. E.WooldridgeB. (2003) “Achieving Strategic Consensus in the Hospital Setting: A Middle Management Perspective,” Hospital Topics81(1): 15–22.
103.
PfefferJ.SalancikG. R. (1978) The External Control of Organizations: A Resource Dependence Perspective. New York: Harper & Row.
104.
PodsakoffP. M.OrganD. W. (1986) “Self-Reports in Organizational Research: Problems and Perspectives,” Journal of Management12: 531–44.
105.
PodsakoffP. M.MacKenzieS. B.LeeJ.-Y.PodsakoffN. P. (2003) “Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies,” Journal of Applied Psychology88(5): 879–903.
106.
PorterL. W.SteersR. M.MowdayR. T. (1974) “Organizational Commitment, Job Satisfaction, and Turnover among Psychiatric Technicians,” Journal of Applied Psychology59(5): 603–9.
107.
PorterM. E. (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press.
108.
PrescottJ. E. (1986) “Environments as Moderators of the Relationship between Strategy and Performance,” Academy of Management Journal29(2): 329–46.
109.
PriemR. L. (1990) “Top Management Team Group Factors, Consensus, and Firm Performance,” Strategic Management Journal11: 469–78.
110.
PusserB. (2003) “Beyond Baldridge: Extending the Political Model of Higher Education Organization and Governance,” Educational Policy17(1): 121–40.
111.
QuinnJ. B. (1980) Strategies for Change: Logical Incrementalism. Homewood, IL: Richard D. Irwin, Inc.
112.
Ramos-GarzaC. (2009) “TMT Strategic Consensus in Mexican Companies,” Journal of Business Research62(9): 854–60.
113.
RapertM. I.LynchD.SuterT. (1996) “Enhancing Functional and Organizational Performance via Strategic Consensus and Commitment,” Journal of Strategic Marketing4: 193–205.
114.
RapertM. I.VelliquetteA.GarretsonJ. A. (2002) “The Strategic Implementation Process: Evoking Strategic Consensus through Communication,” Journal of Business Research55(4): 301–10.
115.
RavasiD.PhillipsN. (2011) “Strategies of Alignment: Organizational Identity Management and Strategic Change at Bang & Olufsen,” Strategic Organization9: 103–35.
116.
RobertsC. (1995) Consensus on Strategic Decisions and Core Capabilities. Unpublished Dissertation, University of Massachusetts Amherst, Amherst, MA.
117.
SarmientoR.KnowlesG.ByrneM. (2008) “Strategic Consensus on Manufacturing Competitive Priorities: A New Methodology and Proposals for Research,” Journal of Manufacturing Technology Management19(7): 830–43.
118.
SchweigerD. M.SandbergW. R.RaganJ. R. (1986) “Group Approaches for Improving Strategic Decision Making: A Comparative Analysis of Dialectical Inquiry, Devil’s Advocacy, and Consensus,” Academy of Management Journal29(1): 51–71.
119.
ShiW.MarkoczyL.DessG. G. (2009) “The Role of Middle Management in the Strategy Process: Group Affiliation, Structural Holes and Tertius Iungens,” Journal of Management35(6): 1453–80.
120.
SimonH. A. (1957) Administrative Behavior. New York: Macmillan.
121.
SpencerB.PeyrefitteJ.ChurchmanR. (2003) “Consensus and Divergence in Perceptions of Cognitive Strategic Groups: Evidence from the Health Care Industry,” Strategic Organization1(2): 203–30.
122.
StrikeV. M. (2012) “Advising the Family Firm. Reviewing the Past to Build the Future,” Family Business Review25(2): 156–77.
123.
TabachnickB. G.FidellL. S. (1996) Using Multivariate Statistics, 3rd edn.New York: HarperCollins College Publishers.
124.
ThomasJ. B.TrevinoL. K. (1993) “Information Processing in Strategic Alliance Building: A Multiple-Case Approach,” Journal of Management Studies30(5): 779–814.
125.
VenkatramanN.CamillusJ. C. (1984) “Exploring the Concept of ‘Fit’ in Strategic Management,” Academy of Management Review9(3): 513–25.
126.
VenkatramanN.PrescottJ. E. (1990) “Environment-Strategy Coalignment: An Empirical Test of its Performance Implications,” Strategic Management Journal11: 1–23.
127.
WalterJ.KellermannsF. W.LechnerC. (2012) “Decision Making within and between Organizations: Rationality, Politics and Alliance Performance,” Journal of Management38(5): 1582–610.
128.
WardS. (2003) “Strategic Planning at ACE: Guiding a Venerable Institution forward into a New Century,” Presidency6(1): 18–23.
129.
WestC. T.SchwenkC. R. (1996) “Top Management Team Strategic Consensus, Demographic Homogeneity and Firm Performance: A Report of Resounding Nonfindings,” Strategic Management Journal17: 571–6.
130.
WestG. P.MeyerG. D. (1998) “To Agree or Not To Agree? Consensus and Performance in New Ventures,” Journal of Business Venturing13: 395–422.
131.
WooldridgeB.FloydS. W. (1989) “Strategic Process Effects on Consensus,” Strategic Management Journal10: 295–302.
132.
WooldridgeB.FloydS. W. (1990) “The Strategy Process, Middle Management Involvement, and Organizational Performance,” Strategic Management Journal11: 231–41.
133.
ZajacE. J.KraatzM. S.BresserR. K. F. (2000) “Modeling the Dynamics of Strategic Fit: A Normative Approach to Strategic Change,” Strategic Management Journal21: 429–53.
