The Engagement of Employees In The Strategy Process and Firm Performance: The Role of Strategic Goals and Environment
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Keywords

Strategy
Firm Performance
Employees

How to Cite

The Engagement of Employees In The Strategy Process and Firm Performance: The Role of Strategic Goals and Environment. (2005). Journal of Business Strategies, 22(2), 75-100. https://doi.org/10.54155/jbs.22.2.75-100

Abstract

Despite the call to engage employees in strategy making processes, empirical
evidence that ties this engagement to financial performance has not been forthcoming.
This study fills this gap by investigating whether involving employees
in the strategy making process leads to a higher achievement of strategic goals
and subsequently increased financial performance. Our findings suggest that
the link between strategy making processes and financial performance may be
underestimated unless strategic goals are included as a mediator. We also find
environmental dynamism moderates the relationships we investigate. Under conditions
of low dynamism, there is a stronger relationship between the engagement
of employees and strategic goals related to innovation than under conditions of
high dynamism. Conversely, strategic goals related to quality have a stronger
relationship with engagement of employees under conditions of high dynamism
when compared to conditions of low dynamism.

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