Strategy improvisation as implementation of change: Antecedents, moderators and outcome

This study draws on the strategy-making process and strategic change literature on the problems affecting the implementation of change (IC). Turbulence causes capabilities gap and strategy misfit, and firms implement change by formulating emergent strategies and strategic changes. However, IC is hindered by tensions that arise due to strategic changes caused by abrupt top managers decisions and lack of communication. The concept of implementation of change depicts actions and
capabilities firms employ to respond to turbulence.
This study conceptualises strategy improvisation as the IC. During IC, strategy improvisation focuses on spontaneity and creativity of strategies in response to turbulence. The study posits that problems ensue during strategic changes, which is more severe with unanticipated turbulence, thereby delaying the strategy-making process (SMP), thus the IC failure and performance decline. Also, SMP dynamics raises the paradox of spontaneity and creativity at the organisational level, making it challenging to employ simultaneously. The contradictory structural process of improvisation dimensions and tensions associated causes upheaval for the IC and results in different performance outcomes when responding to turbulent events
Accordingly, this study extends the structure-conduct-performance (SCP) paradigm and dynamic capability theory (DCT) into strategy improvisation studies. It develops and tests a theoretical framework of antecedent, moderators, and outcome of IC. This study test unanticipated turbulence and strategy improvisation dimension link. It identifies market sensing and strategic feedback systems (SFS) as moderators that influence firms' ability to mitigate unanticipated turbulence. It tests the improvisation dimensions and financial performance link and introduces organisational responsiveness as a moderator.
This study adopts a quantitative methodology by collecting data from 175 manufacturing firms in the USA. The Statistical Package for Social Sciences (SPSS) and Amos are used to test hypotheses.
Findings show that unanticipated turbulence deters improvisation dimensions, and this relationship can be mitigated with SFS. Meanwhile, with market sensing, the relationship between unanticipated turbulence is not supported. There was no relationship between spontaneity and financial performance, but this is positively enhanced with responsiveness. Creativity has a positive relationship with financial performance, but the relationship is weakened with organisational responsiveness.