مطالعات مدیریت راهبردی (Jun 2024)
The Impact of Strategic Planning of parent company on Strategic Innovation and Strategic Survival of Subsidiaries by Analyzing the Role of Strategic Flexibility (Case study: TAPICO Holding)
Abstract
Aim and Introduction: Nowadays, with changes and instability, the business environment has become more complicated, and organizations need to change their past strategies to understand and meet customer needs faster and more competitively than competitors. Accordingly, the business survival is an important functional feature that is heavily dependent on the strategic Planning of the parent companies. The decisions that parent companies make to choose maternal practices determine the business survival level. Therefore, strategic planning is used as one of the methods of controlling parent companies for the long -term business survival of subsidiary. However, parent companies cannot compete with their main competitors regardless of strategic innovation. However, strategic innovation is considered as a sustainable competitive advantage of companies; but in some cases, companies have not been able to achieve favorable economic returns through this way. Previous studies have shown that strategic flexibility is a prelude to strategic innovation and has a significant relationship with product innovation and corporate survival. However, previous studies have sometimes identified contradictory results from the impact of strategic flexibility and strategic planning for business survival. Prommarat et al. (2015) considers strategic flexibility to be important for adaptation, value creation and business survival; But Armstrong (2013) points out that flexibility-based strategies, has a negative impact on business survival. Given that there are different and sometimes contradictory results on the impact of strategic planning on innovation and strategic survival, and the mediating role of strategic flexibility in the relationship between strategic planning and strategic survival in earlier studies has not been clarified; Therefore, this study, in order to address this research gap, develops a conceptual framework for the relationship between strategic planning, strategic flexibility, strategic innovation and strategic survival, analyzing and describing the role of these structures in both parent companies and subsidiary business. This study examines the impact of strategic planning of parent companies on strategic innovation and strategic survival of subsidiaries by analyzing the role of strategic flexibility in TAPICO Holding. Answering the questions of how strategic planning for parent companies can be useful for strategic innovation and strategic survival of subsidiary businesses? And what is the role of the strategic flexibility of subsidiary units in the relationship between strategic planning, strategic innovation and strategic survival?Methodology: This research is applied in purpose and is a descriptive nature of the survey. The statistical population of the study is 482 senior and middle managers of 42 subsidiaries from five different industrial and management groups operating under the supervision of TAPICO Holding. Due to the problems of the fingerprint rules, the sample size of this study was determined by 222 people using the power test and G-Power software, and 280 questionnaires were distributed and at 82.5 %, Finally 225 questionnaires were based on analysis. Standard questions were used to measure variables. Strategic planning in parent companies is based on 5 questions focused on long-term programs based on strategic goals, corporate strategies, future resources, reform processes, and continuous analysis and interpretation of environmental by AlQershi (2021) research questionnaire. Strategic flexibility based on 6 questions by research of Rosovich (2018) focusing on ease of regeneration of procedures, reform and rapid reaction, strategies control, timing of alternative resource use, implementation and active development of new projects and reset is a resource chain. Strategic Innovation with 7 research questions based on Karasneh (2019) and focusing on new production or improving current products, creating new supply products, new problem-solving methods, allocation of resources for research and development, searching and discovering new market opportunities, Using high-level technologies, improving product quality and reducing costs have been measured. The strategic survival includes 8 closed questions by Barbosa (2016) and focused on cash accessibility, stored cash, account turnover, geographical market extent, market segmentation, sales estimation and risk tolerance adapted. Data analysis was done using structural equation and Smart PLS software. In this study based on the viewpoint of Hair et al. (2018) after the validity of the measurement model (convergence and divergent validity) and its reliability (Cronbach's Alfa and composite Reliability), structural model quality indices to ensure the coefficient of determination (R²), The effect size (F2) and the predicting quality (Q2) were calculated. To measure mediators, the Variance Accounted for (VAF) test method was developed in accordance with Hair et al. (2018) is used. Finally, for the prediction power of the variables, the Importance-Performance Map Analyzed and interpreted based on the output of the structural model is used.Discussion and Conclusion: The results of hypotheses testing with direct effect show that strategic planning by 0.547 coefficient effects on strategic flexibility, and by 0.223 coefficient effects on strategic innovation and by 0.363 coefficient effects on strategic survival. In addition, strategic flexibility by 0.686 coefficient effects on strategic innovation and by 0.411 coefficient effects on strategic survival. Strategic innovation also effects on strategic survival by 0.788 coefficient. The intensity result of mediation based on the Variance Accounted for (VAF) test shows that strategic planning with the role of strategic flexibility by 0.255 coefficient and the role of strategic innovation by 0.173 coefficient effects on strategic survival of subsidiary. In addition, strategic planning with a mediating role of strategic innovation by 0.375 coefficient, effects on strategic survival and ultimately, strategic flexibility with the mediating role of strategic innovation and 0.534 coefficient effects on strategic survival. This study shows important managerial consequences for TAPICO Holding subsidiaries as well as and macro industry policymakers. Therefore, applications are offered for industrial managers and strategic planners. Intensive communication of business executives with external factors to gain environmental information and knowledge and continuous scouting of changes increases the likelihood of business survival; Therefore, industrial managers and planners should focus on resource flexibility and coordinate between internal factors and external resources while modifying source -based production processes, integrating long -term goals in different holding groups. The present study expanded the literature of strategic management by filling out the research gap and highlighting the role of variables affecting strategic survival in businesses.
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