Saudi Journal of Business and Management Studies (SJBMS)
Volume-5 | Issue-12 | 561-570
Original Research Article
Obstacles to Strategy Execution: The Case of the UAE Steel Manufacturing Industry
Dr. Christophe Y. R. Berthomier
Published : Dec. 10, 2020
Abstract
This research examined 12 factors most associated with and predictive of corporate strategy execution in the United Arab Emirates’ steel manufacturing industry. It embraced a positivism research philosophy and quantitative methodology through respondent surveys (n = 112) and a case study (n = 80). Correlations between data sets were calculated using Pearson and Spearman correlation and multiple regression; t-tests, ANOVA, and Tukey–Kramer post-hoc statistical tests were also used. Participants perceived their organization’s strategy as being of high quality, with a statistical significance level (t [111] = 21.50; p < .001). Participants were satisfied with their organization’s strategy execution, with a statistical significance level (t [111] = 18.62; p < .001). Of the 12 factors, three represented statistically significant predictors (p < .05) of the perceived efficacy of strategy execution: clear guidelines, harmony between the execution plan and the power structure, and the organization’s ability to adapt to change. Hypothesis testing found that the higher the hierarchy level, the higher the number of respondents who strongly agreed with the survey questions related to the 12 elements. Organizations need to define power bases and form coalitions with those in power; focus on value-added, measurable results; and ensure that resources are fairly distributed. Furthermore, organizations need to assess the size of the strategic change and the time needed to execute it, outline the steps and tactics, clearly identify responsibilities and accountabilities, and overcome resistance to change, including cultural change.