The Role of Trust in the Strategic Management Process: A Case Study of Finnish Grocery Retail Company Kesko Ltd

Q4 Business, Management and Accounting South Asian Journal of Business and Management Cases Pub Date : 2021-04-01 DOI:10.1177/22779779211006801
Kirsti Malkamäki, Esa Hiltunen, Eeva Aromaa
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Abstract

Previous strategy management studies have devoted scant attention to the role of trust in the strategic management process (SMP). The purpose of this study is to investigate trust in the management of a grocery trade business. Prior literature was reviewed to deepen the current understanding of trust in the SMP, and then explored through a case study on a Finnish grocery retail company, Kesko Ltd. The study was conducted by employing a qualitative research methodology and is based on an interview with the president of Kesko, who is intensively involved in the SMP. This study stresses the consideration of trust development in strategy work. The findings indicate that trust considerations in the strategic choices of the top management team can provide efficiency, innovation, and engagement in strategy implementation. Research Questions In this article, we ask how trust develops during three phases of the strategy process: strategy formulation, strategic choices, and strategy implementation. Links to Theory Our analysis of trust development focuses on the five most operationalized dimensions of trust: (a) ability and competence, (b) benevolence, (c) integrity, (d) affective-based trust, and (e) cognitive-based trust (McEvily & Tortoriello, 2011). Strategic management is separated into three interlinked phases: strategic formulation, strategic choice making, and strategy implementation (Johnson et al., 2008). Phenomenon Studied The case focuses on trust development in the strategy management process. Case Context The context of the case is a participatory strategic management process in a large Finnish grocery retail chain in a highly competitive and concentrated market. The role of trust development was studied in the case company between the K-retailers, who are independent entrepreneurs, and Kesko management staff and actors responsible for management and constant development of the business model. Findings This study shows how trust emerged as a result of participatory practices and dialogue between actors from different levels of organization in the strategy formulation phase. Increased understanding and contribution to strategy empowered top management to make new and brave strategic choices. This study illustrates how consistency between the strategic choices and actions for implementation enhanced trust among the organizational actors, who felt a sense of enhanced engagement in the implementation of the new strategy in their everyday work. Discussions This study highlights the role of trust in strategy formulation, strategic choices, and strategy implementation. It contributes to the understanding of trust in the SMP, which has not been widely researched in previous literature. Based on our results, we suggest that trust between parties is earned and evolves at each of the three stages of the SMP.
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信任在战略管理过程中的作用:以芬兰杂货零售公司Kesko Ltd为例
以往的战略管理研究很少关注信任在战略管理过程(SMP)中的作用。本研究的目的是调查信任在食品杂货贸易企业的管理。我们回顾了先前的文献,以加深目前对SMP信任的理解,然后通过对芬兰杂货零售公司Kesko Ltd的案例研究进行了探讨。该研究采用定性研究方法进行,并基于对Kesko总裁的采访,他深入参与了SMP。本研究强调在战略工作中对信任发展的考虑。研究结果表明,高层管理团队在战略选择中考虑信任因素可以提高战略实施的效率、创新和参与度。在本文中,我们将探讨信任在战略过程的三个阶段:战略制定、战略选择和战略实施中是如何发展的。我们对信任发展的分析侧重于信任的五个最可操作的维度:(a)能力和竞争力,(b)仁慈,(c)诚信,(d)基于情感的信任,(e)基于认知的信任(McEvily & Tortoriello, 2011)。战略管理分为三个相互关联的阶段:战略制定、战略选择和战略实施(Johnson et al., 2008)。本案例关注的是战略管理过程中信任的发展。本案例的背景是芬兰一家大型杂货零售连锁店在高度竞争和集中的市场中的参与式战略管理过程。在案例公司中,研究了作为独立企业家的k -零售商与Kesko管理人员和负责管理和不断发展商业模式的行动者之间信任发展的作用。研究结果表明,在战略制定阶段,信任是如何作为参与性实践和来自不同组织层面的行动者之间对话的结果而出现的。增加对战略的理解和贡献,使高层管理人员能够做出新的和勇敢的战略选择。本研究说明了战略选择和实施行动之间的一致性如何增强了组织参与者之间的信任,这些参与者在日常工作中对新战略的实施有一种增强的参与感。本研究强调信任在战略制定、战略选择和战略实施中的作用。这有助于理解SMP中的信任,这在以前的文献中没有得到广泛的研究。基于我们的研究结果,我们认为各方之间的信任是在SMP的三个阶段中获得和发展的。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
South Asian Journal of Business and Management Cases
South Asian Journal of Business and Management Cases Business, Management and Accounting-Management of Technology and Innovation
CiteScore
1.70
自引率
0.00%
发文量
19
期刊介绍: South Asian Journal of Business and Management Cases (SAJBMC) is a peer-reviewed, tri-annual journal of Birla Institute of Management Technology, Greater Noida (India). The journal aims to provide a space for high-quality original research or analytical cases, evidence-based case studies, comparative studies on industry sectors, products, and practical applications of management concepts. The journal likes to publish problem-solving, decisional and applied types of cases. Such cases must have linkage with theory, at least one dilemma (also known as case issue) and a protagonist around whom the case issue will revolve. Publication of pure research, applied research and field studies with empirical data do not fall under the domain of SAJBMC. Fictitious cases are not welcome.
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