Influence of Strategy Formulation Vision Mission and Goals

ABSTRACT

strategic planning is an instrument that is helpful for leading day-to-day decisions and evaluating performance. Today, strategic planning is an important element of organizations as most organizations both public and private organizations in the world use and implement strategic management. Strategic management has become more important in public organizations because of the increased emphasis has been placed on attaining higher levels of performance. In this study, the main objective is to examine the impact of strategy formulation on the learning and growth in the context public sector in the uae. The present study adopts quantitative research design in its quest to achieve a credible study. As such, questionnaire was developed and used to elicit the respondents’ opinion on the effects of strategy formulation on the uae public sector performance. 403 usable responses were analysed using statistical package for social sciences (spss) and pls (partial least squares) sem-vb (structural equation modelling-variance based) was employed to assess the research model. Non-probability sampling technique was adopted to gather the required quantitative data. Based on the findings in relation to this objective, the study concluded that the results indicated that strategy implementation (strategy, structure, and human resources) has a significant and positive impact on organizational performance and has explained 19.3% of the variance in organizational performance. Results would give insights for public sector in the uae specifically in the judicial departments in abu dhabi.

I. INTRODUCTION

Organizations should increase spending on research and development in order to increase the organizational effectiveness (Osama Isaac, Abdullah, Ramayah, Mutahar, & Alrajawy, 2018; Isaac, Abdullah, Ramayah, & Mutahar, 2017b). Today, many public and private organisations have realised the importance of strategic management and are implementing its principles (Aligholi and Gheshlagh 2014). These principles are more significant in public organisations as they place a higher emphasis on improving their performance (Poister et al., 2010). Strategic management was regarded as a very efficient management tool for improving the organisation performance as it promoted and implemented an effective decision-making process and a systematic implementation and formulation strategy (Zaei et al., 2013).

Strategy formulation is important in any public organisation. The earlier published studies have emphasised the relevance of formulating and implementing effective strategies in the public sector (Kang 2006). The focus on the specific strategies and their results dominate the applicability and comprehensiveness of formulation and implementation strategy (Kang 2006). Because formulation and implementation strategy demand an intellectual effort as well as discipline, a public employee’s will and skill in choosing future courses of action are crucial for successful implementation. If the organisation does not display a clear goal, vision or mission, public/ employee support and a comprehensive understanding, the implementation and the formulation strategies would be ineffective (Poister et al., 2010)(Ali Ameen & Ahmad, 2013a; Ali Ameen, Almari, Isaac, & Mohammed, 2019; Ali Ameen, Almulla, Maram, Al-Shibami, & Ghosh, 2018; Ali Ameen et al., 2020).

The published literature showed that the organisations which were more committed to the implementation and formulation strategies showed a higher organisational performance (Aligholi and Gheshlagh 2014). The formulation and implementation strategy display a better framework which can guide the managerial functions. The primary parameter includes the effective application of the implementation and formulation strategies which improve the performance of the government sectors (Kang 2006). The second factor includes the probability that the public employees would consider all the practical guidelines as an additional tool for improving their productivity.

Hence, for the successful application of the implementation and formulation strategy, public officials must perceive these strategies as a tool for improving their performance (Kang 2006). In the following subsections, the researchers have discussed the reasons why the formulation and implementation strategies are essential in the strategic management of all public sector organisations. These organisations also included public firms in the UAE. This study has attempted to study the relationship and implementation of the strategic management process (which focused on the formulation and implementation strategies) on the performance of the public sector organisations in the UAE.

II. LITERATURE REVIEW

2.1 Strategy Formulation (SF)

Strategy formulation refers to the assessment of the external and internal environment and integrating the results into goals and strategies (Daft, 2006). It is defined as the developed phase of long-term plans for the effective management of environmental opportunities and threats on the principle of companies’ strengths and weaknesses (Huiru, 2011). Strategy formulation has been widely examined and studied by numerous researchers and found that results differ from one organization to another and be faced with quite a lot of challenges (Njiru, 2014). For instance, Julian (2013) has presented approaches for the formulation strategy to improve the performance of organisations in Kenya(A Ameen, Alfalasi, Gazem, & Isaac, 2020; Ali Ameen & Ahmad, 2011, 2012; Ali Ameen, Al-Ali, Alshibami, & Isaac, 2019; Ali Ameen, Almari, & Isaac, 2019). The experimental findings suggested that the strategy of formulation has directly played a role in the organisational performance of the government units and associated institutions involved in the research(Al-Obthani & Ameen, 2019b; Alfalasi, Ameen, Isaac, Khalifa, & Midhunchakkaravarthy, 2020; Alghawi, Ameen, & Bhaumik, 2019a; Alshamsi, Ameen, Isaac, Khalifa, & Bhumic, 2019; Alshamsi, Ameen, Nusari, Abuelhassan, & Bhumic, 2019; A Ameen et al., 2020; Ali Ameen, AlAli, et al., 2019)(Ali Ameen, Almari, Isaac, et al., 2019).

The research also discovered that there is a distinction between the outcomes and methodologies for measurement of the effectiveness of formulation strategy and performance of the organisation, which substantiates the case that selection of the suitable methodology for measuring correlation between adoption strategy and performance of the organisation, must be carried out with prudence(Al-Gamrh, B., Ku Ismail, K. N. , Ahsan, T. and Alquhaif, 2020; B. A. Al-Gamrh & Al-Dhamari, 2016; B. Al-Gamrh, Al-Dhamari, Jalan, & Afshar Jahanshahi, 2020; B. Al-Gamrh, Ku Ismail, & Al-Dhamari, 2018). This agree with numerous studies that found that strategy formulation has a positive relationship with strategy formulation and impacts organizational performance (Aldehayyat & Twaissi, 2011; Daft, 2006; David, 2003; Franklin, 2013; Owolabi & Makinde, 2012);. Consequently, the following hypotheses are proposed:

Consequently, the following hypothesis is proposed:

• H1: Vision has a positive effect on learning & growth.

• H2: Mission has a positive effect on learning & growth.

• H3: Goals have a positive effect on learning & growth.

2.2 Learning & Growth (LG)

The organisational performance factor was regarded as an important parameter which is investigated in the research studies related to organisational management (Gavrea et al., 2011). The organisational performance was seen to be an indicator or benchmark for the effectiveness, efficiency and environmental obligation such as time of the cycle, productivity, waste reduction and compliance of all rules (Muchira 2013)(Al-Obthani & Ameen, 2019a; Albreiki, Ameen, & Bhaumik, 2019; Albreki, Ameen, & Bhaumik, 2019; Alghawi, Ameen, & Bhaumik, 2019b; AlShamsi, Ameen, Isaac, Al-Shibami, & Bhaumik, 2020). Many studies have considered the organisational performance as an effective tool for fulfilling all objectives (Abu-Jarad et al., 2010; Shahzad et al., 2012). Thus, the organisational performance was a vital factor that helped in evaluating the organisations, activities. This significance was noted by the fact that the organisational performance was a dependent factor used in earlier studies (Richard et al., 2009)(Alkatheeri et al., 2020; Haddad et al., 2020; Yazeed Alkatheeri, Ali Ameen, Osama Isaac, Ahmed Hamoud Al-Shibami, 2020). Abu-Qouod (2006) determined the organisational performance based on its learning and growth. They stated that the success and performance of the organisation were based on the excellent resources and unique strategies. According to the theory of contingency, no best method or technique could be used for running the organisations (Gavrea et al., 2011).

III. RESEARCH METHOD

3.1 Overview of the Proposed Conceptual Framework

This study proposes a research model based on Resource-Based View Theory and strategic management models postulated in the literature which examined the relationship between formulation strategy consist of (vision, mission, goals) as independent variable and organizational performance (Growth and Learning) as dependent variable. Based on the above, the research model for this study is depicted in Figure 2. 

3.2. Development of Instrument and Data collection

This study has used a quantitative research design for acquiring credible results, and Variables were measured using a Likert Scale which recommended in the previous studies (Isaac, Aldholay, Abdullah, & Ramayah, 2019; Isaac, Abdullah, Ramayah, & Mutahar, 2018). For this purpose, the researchers developed a questionnaire and asked the respondents to present their opinion regarding the effect of strategy implementation on the performance of the UAE public organisations. Thereafter, they analysed 403 usable responses with the help of the Statistical Package for Social Sciences (SPSS) software. They applied the PLS (Partial Least Squares)-SEM-VB (Structural Equation Modelling-Variance Based) technique for assessing the research model developed in the study. The respondents formed a small sample of the employees who worked at the various judicial departments in the Ministry of Justice, Abu Dhabi. All respondents were selected using a probability random sampling technique. The different variables were determined with the help of a Likert Scale suggested in the earlier reports (Mutahar et al., 2017; Aldholay et al., 2018; Aldholay et al., 2018).

IV. DATA ANALYSIS AND RESULTS

PLS (Partial Least Squares) SEM-VB (Structural Equation Modelling-Variance Based) was employed to assess the research model by utilizing the software SmartPLS 3.0 (Ringle, Wende, & Becker, 2015). The main reasons for choosing SEM as a statistical method for this study is that SEM offers a simultaneous analysis which leads to more accurate estimates (Isaac, Abdullah, Aldholay, & Ameen, 2019; Isaac, Abdullah, Ramayah, & Mutahar, 2017; Mutahar, Daud, Thurasamy, Isaac, & Abdulsalam, 2018).