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A Fuzzy Model for Measuring Organizational Strategy Alignment: A Case Study on South Pars Projects of Iran’s Oil Industry

Document Type : Original Article

Authors

1 Assistant Professor, Department of Energy Economics and Management, Tehran Faculty of Petroleum, Petroleum University of Technology, Tehran, Iran

2 PhD Student in Business Management and Insurance Expert at POGC

Abstract


For every organizational and project activity, decisions should be made to delegate necessary resources. The objective of the current paper is to assist the oil and gas managers in aligning each functional level of strategy to make decisions on resource delegation. This can be conducted by creating a synergy which increases organizational performance. The methodology used in this research is based on a case study on Iran’s South Pars oil and gas zone. The purpose of the present work is to find the alignment pattern classified on social structuralism domain.
This study is explanatory, qualitative, and developmental since it applies the fuzzy set theory to measurements. Presented herein is a comprehensive model according to the systematic and scientific approaches in the field of management. The main purpose of this model is to create organizational strategy alignment in severe environmental conditions and in the presence of external economic sanctions in South Pars oil and gas projects. The statistical society included in this study were the managers and CEO’s who had in-depth experience in South Pars projects for more than five years. Since the number of the managers were 43, the possibility of data gathering allowed for not using the sample size. The results show that by increasing strategic alignment (SA) among strategy functions, structure, human resource, and technology, the level of organizational performance rises, and the fuzzy model of SA leads to better statement reality.  
 
 
 

Keywords

Main Subjects

References
Andrews, R. Kenneth. (1987). The Concept of Corporate Strategy. 3rd Edition. London: Richard D. Irwin, Inc.
Azar, Adel and Hojat Faraji. (2007). Fuzzy Management Science, Tehran, ICMS, Farsi languages. 
Balkin, D. and L. Gomez-Mejia. (1990). "Matching Compensation and Organizational Strategies", Strategic Management Journal, Vol. 11, No. 2, Pp. 153-169.
Bamberger, Peter and Avi Figenbaum. (1996). "The Role of Strategic Reference Points in Explaining the Nature and Consequences of Human Resource Strategy", Academy of Management Review, Vol. 21, No. 4, Pp. 219-235.
Barney, J. (1991). "Firm Resources and Sustained Competitive Advantage", Journal of Management, Vol. 7, No. 3, Pp. 99-120.
Burrell, G. and G. Morgan. (1979). Sociological Paradigms and Organizational Analysis. London: Heinemann.
Chandler, A. (1962). Strategy & Structure. New York:  MIT Press.
Chorn, Norman H. (1991). "The Alignment Theory: Creating Strategic Fit", Management Decision, Vol. 29, No. 1, Pp. 120-145.
Clarke, Steve. (2006). Information System Strategic Management: An Integrated Approach, 7th Edition, Routledge.
Daft, Richard L. (2015). Organization Theory and Design. 12th Edition. York: South-Western College Publishing.
David, Fred R. (2018). Strategic Management: Concepts and Cases,12th Edition, Prentice Hall of India.
Doty, D.H.; W.H. Glick and G.P. Huber. (1993). Fit, Equifinality and Organizational Effectiveness: A Test of Two Configurational Theories, Academy of Management Journal, Vol. 36, No. 6.
Dvir, D.; E. Segev and A. Shenhar. (1993). "Technologies Varying Impact on the Success of Strategic Business Units within the Miles and Snow Typology", Strategic Management Journal, Vol. 4, No. 2, Pp. 155-161.
Figenbaum, Avi and Hart D. Schendel. (1996). "Strategic Reference Point Theory", Strategic Management Journal, Vol. 17, No. 3, Pp. 219-235.
Fisher, J. and V. Govindarajan. (1990). "Strategy, Control Systems and Resource Sharing: Effects on Business Unit Performance", Academy of Management Journal, Vol. 32, No. 2, Pp. 259-285.
Galbraith, J. and R. Kazanjain. (1986). Strategy Implementation. Boston: West Publishing.
Grint, keith. (1998). Fuzzy Management: Contemporary Ideas and Practices at Work, 1th Edition, Oxford university Press.
Hall, R.H. (2001). Organization: Structures, Processes and Outcomes. 8th Edition, New Jersey: Prentice-Hall Inc.
Hunger, J.D. and T.L. Wheelen. (2007). Essentials of Strategic Management. 2th Edition, Upper Saddle River N.J.: Prentice-Hall.
Itami, H. (1987). Mobilizing Invisible Assets, Harvard University Press.
Johnson, G. and K. Scholes. (2005). Exploring corporate strategy. 6th Edition, New Jersey: Prentice-Hall, Inc.
Leavit, H.J. (1965). Applied Organizational Change in Industry: Structural, Technological and Humanistic Approaches; New Perspectives in Organizational Research.  In March J.G; hand book of organization, Chicago: Rand McNally, Pp. 55-71.
Mintzberg, H. and, J.B. Quinn. (1991). The Strategy Process: Concepts, Contexts, Case. 2nd Edition, Englewood Cliffs N.J., Prentice-Hall.
Mintzberg, Henry. (2007). Tracking Strategies: toward a General Theory. 1st Edition. Oxford: Oxford University Press.
Pearce, J.A. and R.B. Robinson. (1991). Strategic Management Practice: Riding in Strategic Management. New York: McGraw-Hill.
Pearce, J.A. and R.B. Robinson. (1994). Strategic Management: Formulation, Implementation, and Control. 5th Edition, Boston: Richard, D. Irwin, Inc.
Porter, M.E. (1985). Competitive Advantage: Creating & Sustaining Superior Performance. New York: Free Press.
Prahalad, C.K. and C. Hamel. (1990). "The Core Competence of Corporation". Harvard Business Review, May-June.
Rahnavard, Farajolah and Saeed Nikzad. (2012). The Alignment between Organizational Elements, Public Management Press, Routledge Taylor and Francis Group.      
Scott, Richard W. (2002). Organization: Rational, Natural and Open Systems, 5th Edition, Prentice Hall.
Simon, H. (1957). Models of Man. New York: Wiley.
Tanaka, Kazuo. (1996). An Introduction to Fuzzy Logic for Practical Applications, 1th edition, Springer, New York.
Waterman, R.H. (1986). "The Seven Elements of Strategic Fit", Journal of Business Strategy, Vol. 2, No. 3, Pp. 35-46.
Woodward, J. (1965). Industrial Organization: Theory and Practice. Oxford: Oxford University Press.
 
 
1.     Andrews, R. Kenneth. (1987). The Concept of Corporate Strategy. 3rd Edition. London: Richard D. Irwin, Inc.
2.     Azar, Adel and Hojat Faraji. (2007). Fuzzy Management Science, Tehran, ICMS, Farsi languages. 
3.     Balkin, D. and L. Gomez-Mejia. (1990). "Matching Compensation and Organizational Strategies", Strategic Management Journal, Vol. 11, No. 2, Pp. 153-169.
4.      Bamberger, Peter and Avi Figenbaum. (1996). "The Role of Strategic Reference Points in Explaining the Nature and Consequences of Human Resource Strategy", Academy of Management Review, Vol. 21, No. 4, Pp. 219-235.
5.     Barney, J. (1991). "Firm Resources and Sustained Competitive Advantage", Journal of Management, Vol. 7, No. 3, Pp. 99-120.
6.      Burrell, G. and G. Morgan. (1979). Sociological Paradigms and Organizational Analysis. London: Heinemann.
7.     Chandler, A. (1962). Strategy & Structure. New York:  MIT Press.
8.     Chorn, Norman H. (1991). "The Alignment Theory: Creating Strategic Fit", Management Decision, Vol. 29, No. 1, Pp. 120-145.
9.     Clarke, Steve. (2006). Information System Strategic Management: An Integrated Approach, 7th Edition, Routledge.
10.Daft, Richard L. (2015). Organization Theory and Design. 12th Edition. York: South-Western College Publishing.
11.David, Fred R. (2018). Strategic Management: Concepts and Cases,12th Edition, Prentice Hall of India.
12.   Doty, D.H.; W.H. Glick and G.P. Huber. (1993). Fit, Equifinality and Organizational Effectiveness: A Test of Two Configurational Theories, Academy of Management Journal, Vol. 36, No. 6.
13.Dvir, D.; E. Segev and A. Shenhar. (1993). "Technologies Varying Impact on the Success of Strategic Business Units within the Miles and Snow Typology", Strategic Management Journal, Vol. 4, No. 2, Pp. 155-161.
14.   Figenbaum, Avi and Hart D. Schendel. (1996). "Strategic Reference Point Theory", Strategic Management Journal, Vol. 17, No. 3, Pp. 219-235.
15.Fisher, J. and V. Govindarajan. (1990). "Strategy, Control Systems and Resource Sharing: Effects on Business Unit Performance", Academy of Management Journal, Vol. 32, No. 2, Pp. 259-285.
16.Galbraith, J. and R. Kazanjain. (1986). Strategy Implementation. Boston: West Publishing.
17.Grint, keith. (1998). Fuzzy Management: Contemporary Ideas and Practices at Work, 1th Edition, Oxford university Press.
18.   Hall, R.H. (2001). Organization: Structures, Processes and Outcomes. 8th Edition, New Jersey: Prentice-Hall Inc.
19.   Hunger, J.D. and T.L. Wheelen. (2007). Essentials of Strategic Management. 2th Edition, Upper Saddle River N.J.: Prentice-Hall.
20.Itami, H. (1987). Mobilizing Invisible Assets, Harvard University Press.
21.Johnson, G. and K. Scholes. (2005). Exploring corporate strategy. 6th Edition, New Jersey: Prentice-Hall, Inc.
22.Leavit, H.J. (1965). Applied Organizational Change in Industry: Structural, Technological and Humanistic Approaches; New Perspectives in Organizational Research.  In March J.G; hand book of organization, Chicago: Rand McNally, Pp. 55-71.
23.Mintzberg, H. and, J.B. Quinn. (1991). The Strategy Process: Concepts, Contexts, Case. 2nd Edition, Englewood Cliffs N.J., Prentice-Hall.
24.Mintzberg, Henry. (2007). Tracking Strategies: toward a General Theory. 1st Edition. Oxford: Oxford University Press.
25.Pearce, J.A. and R.B. Robinson. (1991). Strategic Management Practice: Riding in Strategic Management. New York: McGraw-Hill.
26.Pearce, J.A. and R.B. Robinson. (1994). Strategic Management: Formulation, Implementation, and Control. 5th Edition, Boston: Richard, D. Irwin, Inc.
27.Porter, M.E. (1985). Competitive Advantage: Creating & Sustaining Superior Performance. New York: Free Press.
28.Prahalad, C.K. and C. Hamel. (1990). "The Core Competence of Corporation". Harvard Business Review, May-June.
29.Rahnavard, Farajolah and Saeed Nikzad. (2012). The Alignment between Organizational Elements, Public Management Press, Routledge Taylor and Francis Group.      
30.Scott, Richard W. (2002). Organization: Rational, Natural and Open Systems, 5th Edition, Prentice Hall.
31.Simon, H. (1957). Models of Man. New York: Wiley.
32.Tanaka, Kazuo. (1996). An Introduction to Fuzzy Logic for Practical Applications, 1th edition, Springer, New York.
33.Waterman, R.H. (1986). "The Seven Elements of Strategic Fit", Journal of Business Strategy, Vol. 2, No. 3, Pp. 35-46.
34.Woodward, J. (1965). Industrial Organization: Theory and Practice. Oxford: Oxford University Press.
 
 
Petroleum Business Review
Volume 2, Issue 3 - Serial Number 4
September 2018
Pages 47-55
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History
  • Receive Date: 04 June 2018
  • Revise Date: 19 August 2018
  • Accept Date: 28 August 2018
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