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It is widely acknowledged that effective strategy implementation, as one of the most crucial stages of the strategy making process, leads to better organizational performance. In particular, the literature indicates that implementation style is essential for directing strategies towards good organizational outcomes. For public sector organizations, there is a common belief that the implementation of strategies mostly fails in practice. However, there is still very little research addressing whether implementation style is related to better public service outcomes. This study explores the relationships between rational and incremental strategy implementation styles and the performance of public sector organizations. In addition, it investigates the effects of organizational culture, another important organizational characteristics seen as an effective tool for enhancing performance. While there are numerous studies in the literature investigating the relationship between organizational culture and performance in both the private and the public sector, most of this research investigates the direct effects of culture. Here, I examine the separate and combined effects of strategy implementation style and organizational culture on performance by applying the Competing Values Framework, a comprehensive typology which includes four types of culture together with specific organizational effectiveness criteria. By doing so, the current research is intended to contribute to the literatures on strategy implementation, organizational culture and performance. Contextually, the relationships were examined in Turkish local government organizations, specifically in metropolitan municipalities – large multi-purpose public organizations serving many citizens. The study therefore contributes new evidence on public sector strategic management in a non-Western environment. A mixed method research design is applied using 134 survey responses and 16 semi-structured interviews. Survey data, as the main quantitative component of the study, were analysed using multiple and robust moderated regression models. Qualitative data collection was then undertaken to clarify the relationships uncovered by the quantitative data analysis. The study results confirmed the presence of a significant positive relationship between rational strategy implementation and organizational performance. In regards to organizational culture types, only the hierarchy culture showed a consistently positive influence on performance. Nevertheless, a rational strategy implementation style appeared to strengthen the effects of a hierarchical and a market-based culture on performance, while an incremental strategy implementation style seemed to enhance the effects of a clan-oriented culture and an adhocracy culture on performance. Qualitative data analysis largely supports the quantitative findings on the independent and moderating effects of strategy implementation style and organizational performance. However, it also identified some positive performance effects from a hierarchy culture, a market-based culture, a clan culture and an adhocracy culture. Theoretical and practical implications of the findings are discussed in the conclusion. |
