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Effect of Strategic Thinking Skills on Dimensions of Competitive Advantage: Empirical Evidence from Jordan

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The main aim of this research was to conduct an empirical investigation of the effect of strategic thinking skills on the dimensions of competitive advantage using a sample from banking sector in Jordan.Strategic Thinking Questionnaire (STQ) was used to collect data for the investigation. Four models to capture the effect of each skill of strategic thinking on each dimensions of competitive advantage were developed and tested through several hypotheses using multiple regression analysis as a tool for data analysis and hypotheses testing.Results indicated that, reflecting as a strategic thinking skill has a significant effect on all dimensions of competitive advantage in all models. On the other hand, the remaining two (system thinking and reframing) skills of strategic thinking failed to show any significant effect on competitive advantage in all models tested in this research.
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International Journal of Business and Management; Vol. 13, No. 5; 2018
ISSN 1833-3850 E-ISSN 1833-8119
Published by Canadian Center of Science and Education
127
Effect of Strategic Thinking Skills on Dimensions of Competitive
Advantage: Empirical Evidence from Jordan
Ahmed A. Al-Qatamin1 & Ayat M. Esam2
1 Faculty of Business Studies, Arab Open University, Jordan
2 Faculty of Business and Finance, World Islamic Sciences and Education University, Jordan
Correspondence: Ayat M. Esam, Faculty of Business and Finance, World Islamic Sciences and Education
University, Jordan. E-mail: ayat.mohammad@wise.edu.jo
Received: January 14, 2018 Accepted: March 17, 2018 Online Published: April 18, 2018
doi:10.5539/ijbm.v13n5p127 URL: https://doi.org/10.5539/ijbm.v13n5p127
Abstract
The main aim of this research was to conduct an empirical investigation of the effect of strategic thinking skills
on the dimensions of competitive advantage using a sample from banking sector in Jordan.
Strategic Thinking Questionnaire (STQ) was used to collect data for the investigation. Four models to capture
the effect of each skill of strategic thinking on each dimensions of competitive advantage were developed and
tested through several hypotheses using multiple regression analysis as a tool for data analysis and hypotheses
testing.
Results indicated that, reflecting as a strategic thinking skill has a significant effect on all dimensions of
competitive advantage in all models. On the other hand, the remaining two (system thinking and reframing)
skills of strategic thinking failed to show any significant effect on competitive advantage in all models tested in
this research.
Keywords: strategic thinking, competitive advantage, STQ, strategic management
1. Introduction
In our modern time, all business organizations face complex problems due to massive changes taking place in
the external environments. These changes require new innovative thinking approaches in order to be able to
respond effectively to them. In many cases effective solutions to problems conducted by corporate executives
provide only temporary solutions to diversified organizational problems which lead later to the creation of more
complex problems. One of these problems is related to difficulties in the process of strategic planning due to the
lack of the required strategic thinking on part of the strategic executives.
It has been noted by many researchers that, skills of strategic thinking usually create a dynamic situation at both
organizational as well as individual levels. This normally leads to formation of core requirements for the
achievement of corporate competitive advantage (Walters, Frome, & Hend, 2013).
Strategic thinking provides executives with the ability to develop a clearly focused vision and therefore allow
them to think with strategic purpose. Having such skills, executives can clearly formulate their organization's
strategic objectives and designing strategic action plans to achieve them. An executive with strategic thinking
skills can utilize thinking process with high degree of flexibility. Therefore, the most significant trait of strategic
thinking can be seen in the ability of managers to employ these advanced human thinking skills in organizational
problem solving process and adaptation with external turbulent environment in an innovative manner. This will
actually lead to alleviating organizational competitive approaches to the highest possible positions in the
competitive markets. Based on this argument, adapting and developing strategic thinking skills should clearly
accomplish many advantages to corporations (McCauley, 2012).
2. Theoretical Background
Pisapia (2006) indicated that leaders usually fail when facing chaotic, complex and turbulent environments. This
usually happened because managers were trained to use their minds according to linear systemic thinking where
such mind cannot function properly in all situation.
Due to such work environment they stand helpless to identify critical environmental forces which renders there
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organization unfunctional. This leads to a situation where internal corporate strengths cannot be allied with the
required critical path of success.
These findings have been supported by other research findings (Moldoveanu, 2009) which showed that linear
thinking does not align with current stage of human history where massive changes are taking place. The
conclusion that can be drawn here is that, our modern external environment requires new class of strategic
executives with high levels of cognitive and analytical skills.
Golden (2011) defined strategic thinking as a process aims at improving organizational functioning through
smart decision making process. Strategic thinking as a concept is usually relayed to innovative approaches. This
process requires managerial thought beyond day to day operational thinking that go in line with organization's
strategic objectives. Strategic thinking is usually comprised of several activities such as data corrections, an
analysis and exchange of thoughts about an issue and a structured way that leads to acquiring correct answers to
specific issues.
Strategic thinking is a process that embedded the manner in which people think and rethink, evaluate, view, and
conduct the future for themselves and others. Strategic thinking is an extremely effective and valuable tool. One
can apply strategic thinking to arrive at decisions that can be related to work or personal life. Strategic thinking
involves developing an entire set of critical cognitive and analytical skills.
Executive with Strategic thinking skills have the ability to use the left (logical) and right (creative) sides of their
brain, a skill that can be significantly valuable for strategy making process.
Moreover, executives with strategic thinking skills usually have the ability to formulate a clearly focused
strategic vision. They have sharp skills at both thinking with a strategic purpose as well as formulating a
visioning process. They enjoy both skills and they utilize them in an integrative approach.
Executives with strategic thinking skills have the ability to define their objectives in a focused way and initiate
action plan with exact resources to produce high quality output.
Executives with strategic thinking skills usually have the capability to inject strategic flexibility into their
strategy by creating benchmarking system for the evaluation and control process. (rbradford@cssp.com)
Strategic thinking is considered a vital business process due to its role in strengthening the overall organizational
performance management and effectiveness. Moreover, its connection to new product development is widely
considered as a crucial operation for industrial concern.
Based on such rationality, a study was conducted by Syeda Asiya Zenab Kazmi et al (2016) as an attempt to link
the concept of strategic thinking with product strategy with the aim of formulating an analytical approach to this
relationship. Researchers aimed at formulating a research framework to offer industrial executives, an approach
to connect various aspects of this process to corporate strategy and product innovations. A survey was developed
and conducted on 30 team members working in the area new product development departments at three locations
of a European multinational company. Findings supported the researchers' theoretical hypotheses connecting
strategic thinking and new product innovation. The study results indicated that, the most significant variables
that have shown positive relationship were early client involvement, customer value, and management
initiatives.
Ranjith (2016) conducted a study on the relationship between business models and competitive advantage. His
basic theoretical assumption was that firms in the emerging markets main focus are to gain sustainable
competitive advantage. The researcher hypothesized that a strong relationship between business models and the
competitive advantage does exist. He defined an effective business model as a combination of deliberately
manipulated resources and capabilities to create and sustain competitive advantage. The main objective of his
research was to conduct an attempt to study the emerging markets business models contribution to competitive
advantage. To achieve this end, the researcher has employed multiple case studies which were developed in
different time periods. Findings indicated that, companies with multiple business models tended to have higher
chances of creating competitive advantage.
Nurul Nadia Abd Aziz and Sarminah Samad (2016), have conducted a study to examine the effect of innovation
on competitive advantage in food manufacturing SMEs in Malaysia. Researchers have also investigated the
possible moderating effect of firm age on innovation that contributes to the creation of competitive advantage. A
random sampling was drawn from the small and medium size Malaysian food manufacturing sector.
Subsequently, a structured questionnaire was used to collect data from the selected sample. Suitable descriptive
and inferential statistics were utilized to test the study hypotheses. Results of testing the study hypotheses
showed that innovation has a strong positive effect on the competitive advantage. Findings confirmed that
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innovation was responsible for 73.5 percent of the variance in competitive advantage, which obviously indicate
that for SMEs to gain competitive advantage they must invest heavily in innovation. Another important result
was that there was a significant moderating effect of firm age on innovation accounting for competitive
advantage.
In an important multi- cultural study conducted by Pisapia et al (2009), Cognition was viewed as the way human
uses mental processing to acquire knowledge, manipulate ideas, and process information and beliefs. The
Strategic Thinking Questionnaire (STQ), which measures three such mental process (systems thinking,
reframing and reflection), was used in this research to collect data from samples of students who are preparing
for school leadership roles at four universities in the United States, Malaysia, Hong Kong, and Shanghai in
China. Researchers were operating under the assumption that the use of these skills should vary from country to
country due to western and eastern varying cultural settings. To the researcher surprise, and based on
self-reported data from 328 respondents, researchers found that the use of strategic thinking skills (system
thinking, reframing and reflecting) were observed in all locations but the variance in their use is more a function
of age of respondents, and gender rather than location. Based on these findings, the researchers asserted that
these findings have significant implications for training, professional development, and selection of strategic
leaders.
The theme of the previous argument should lead to the conclusion that, to think strategically as previous
literature implies, strategists have to develop a full understanding of the processes of strategic thinking and its
connections to contextual environments in which the strategic thinking is taking place. Under such consideration,
the nature of the competitive landscape usually set the requirements for thinking strategically, and as the
environment become more complex, additional considerations had to be integrated into the strategic thinking
system.
3. Objective of the Research
This research aims at the assessment of the effect of strategic thinking on the achievement of competitive
advantage on a sample of banking firms in Jordan.
4. Research Methodology
To reach the above objective, researchers have designed the following model for this investigation.
4.1 The Independent Variables:
For the purpose of this research strategic thinking is going to represent the independent variable which is
comprised of three dimensions called skills of strategic thinking.
4.1.1Dimension One: Reflecting
Reflecting refers to the ability of a leader to integrate logical and rational thinking processes together using
experience, perception and information to make sound judgement about certain state of affair then initiate a
concept that guides what would happen at present and help guide the future perspective (Pisapia, 2009).
4.1.2Dimension Two: Reframing
Reframing refers to the ability of an executive to cover wide range of perspectives, switching flexibly across
multiple strategic modes and mental models. This trait is vital for strategic leaders to help them generate
strategic options and focus on the essentials. It enables executives to classify opportunities and strategic options
so that focus continues to be sharp on vital component of strategic issues. It also helps them to see threats and
problems in a clear manner allowing them to map out options and identify trends ahead of other competitors,
(Pisapia, 2009).
4.1.3 Dimension Three: System Thinking
System thinking refers to the ability of an executive to observe systems comprehensively and interactively by
understanding the inner function ability and interrelationships that interact to create patterns of behaviors which
help generate sound strategic options. It is that holistic capable mind which can be able to define the entire
situation and breaking it downs into manageable parts to facilitate identifying suitable solutions, (Pisapia, 2009).
4.2 The Dependent Variable
For the purpose of this research competitive advantage is going to represent the dependent variable. Four
dimensions of competitive advantage are going to be used here.
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4.2.1 Dimension of Cost
This dimension represents the firm ability to reduce total cost of operations thus increasing profitability
compared to competitors. It includes measures reducing production cost and minimization of waste and bad
products. Some of the most important features of cost may refer to having standardized products, reasonable
quality and product features, putting more emphasis on production efficiency, and conducting continuous cost
reduction in the area of value chain activities.
It may also include considerations related to the management of manufacturing cost, value added, running cost
and service cost.
4.2.2 Dimension of Quality
This dimension represents the firm ability to present the market with unique product that differentiates it from
competitors. It includes measures such as managing quality and quality assurance, systems of quality feedback,
and level of employees' qualifications. This dimension may include performance and features of products,
reliability and conformance of products to specifications, durability and serviceability, value to customer and
reputation.
4.2.3 Dimension of Flexibility
This dimension involves firm's ability to produce and successfully market new products and make modifications
to old products.
It may include several activities such as ability to successfully manage incoming materials of different quality,
and ability to satisfy demand for different levels of quality, and ability to manage the introduction of new
products to markets.
Flexibility as dimension of competitive advantage can also be seen in activities such as the company capability
to modifying existing products to respond to customer changes in preferences and needs, ability to cope with
changes in the product mix in changes in resource mix.
4.2.4 Dimension of Time and Delivery
This dimension represents firm's ability to provide on time services in an integrative manner. This process may
include delivery component such as manufacturing lead time, levels of due date activities, Rate of product
introduction, Delivery lead time and frequency of delivery.
4.3 The Research Tool
In an attempt to present an evidence of the significance of strategic thinking skills as related to competitive
advantage, the researchers have conducted a thorough survey of the previous literature to build up a suitable
theoretical background. Then a questionnaire was borrowed from Pisapia (2007) to measure strategic thinking,
and used to collect primary data from the whole population of 16 banks operating in the banking industry in
Jordan. The targeted unit of the sample was the executives at different managerial levels in these banks. In this
study, the target population was approximately 227 executive managers.
This questionnaire has been developed by Pisapia and subjected to several validations over several years and
proved to be valid and reliable. It has been also translated into several languages and used in subsequent research
by many researchers.
It has been designed to provide an empirical assessment of three strategic thinking skills: reflecting, reframing
and system thinking. It is believed that these three cognitive strategic thinking skills should represents
respondents' ability to think in a flexible and strategic manner, thus provide them with necessary skills to lead
strategically.
"The original STQ developers Pisapia, Reyes-Guerra, and Coukos (2005) have reviewed the literature and then
defined the three cognitive skills. Using the definitions as guides, they wrote statements describing skills
required to think in systems, reframing, and reflection terms. A panel of five experts knowledgeable about
strategic thinking reviewed the resulting 180 items. They sorted the statements into the three categories. In an
iterative fashion, the statements were modified or discarded following lengthy discussions and repeated feedback
sessions between the panel and researchers. Items on the STQ are cast on a five-point Likert scale. A higher
value represents greater use of a cognitive skill, as noted below “as follows:”
1= Almost Never uses
2 = Rarely uses
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3 = Sometimes uses
4 = Frequently uses
5= Almost Always uses
For the purpose of collecting primary data for dimensions of competitive advantage, a questionnaire was
borrowed from Nsour (2016) and used to collect data for this purpose.
In this questionnaire based on the operational definitions developed, the dimensions of competitive advantage
was measured through 22 statements on a Likert five-scale system ranging from very low to very high. The cost
dimension of competitive advantage was represented by 6 statements from 1-6, followed by the quality
dimension represented by 6 statements from 7-12. The dimension of flexibility was represented by 7 statements
from 13-19. Lastly, the delivery dimension of the competitive advantage was measured by 3 statements from
19-22.
Both questionnaires were reproduced and distributed to all banks in Jordan. A total of 100 usable questionnaires
was received and used in this research.
5. Analysis of Demographics of Respondents
Following is the main demographic characteristics of the respondents who have been selected to participate as a
sample in this research.
A total of 100 respondents were filled out the survey and researchers included them in the analysis.
Distribution of the study sample according to gender indicated that 61(61.6 percent) males and 38 (38.4 percent)
females as shown in Table 1, where 15.2 percent of them classified in the strategic level, 39.4 percent in the
functional level, and 55.5 are in the operational management level as reported in table (2).
Table 1. Gender
Frequency Percent Valid Percent Cumulative Percent
M 61 61.6 61.6 61.6
F 38 38.4 38.4 100.0
Total 99 100.0 100.0
Table 2. Managerial Level
Frequency Percent Valid Percent Cumulative Percent
Strategic 15 15.2 15.2 15.2
Functional 39 39.4 39.4 54.5
Operational 45 45.5 45.5 100.0
Total 99 100.0 100.0
Table 3 shows the distribution of the study sample according to years of experience in the company. As shown,
18 (18.2 percent) of the respondents have 1-3 years' experience, 30 (30.3 percent) have 3-5 years' experience and
finally 51 (51.1 percent) have more than five years’ experience.
Table 3. Experience
Frequency Percent Valid Percent Cumulative Percent
1-3 Years 18 18.2 18.2 18.2
3-5 years 30 30.3 30.3 48.5
more than 5 51 51.5 51.5 100.0
Total 99 100.0 100.0
6. Models Formulated and Tested
For the purpose of this research and based in the previous theoretical background developed earlier, the
following four models were formulated and tested using Multiple regression analysis as a statistical technique for
data analysis.
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This categorization of the research design generates four regression models:
6.1 First Model
Y1= a + b1x1+ b2x2 + b3x3
Where,
Y1 is the cost dimension of the competitive advantage
a is the intercept,
b1 is the regression coefficient of x1,
b2 is the regression coefficient of x2 and,
b3 is the regression coefficient of x3.
X1 is the reflection dimension of strategic thinking
X2 is the reframing dimension of strategic thinking
X3 is the system thinking of strategic thinking
6.2 Second Model
Y2= a + b1x1+b2x2+ b3x3
Where,
Y2 is the quality dimension of competitive advantage, and other parameters and independent variables are as in
model one.
6.3 Third Model
Y3= a + b1x1+b2x2+ b3x3
Where Y3 is the flexibility dimension of competitive advantage and other parameters and independent variables
are as in model one.
6.4 Fourth Model
Y4= a + b1x1+b2x2+ b3x3
Where Y4 is the time and delivery dimension of competitive advantage and other parameters and independent
variables are as in model one.
7. The Research Hypotheses
To reach the intended outcome of this research, following are the hypotheses developed by the researchers and
stated in a null format:
H01: Strategic thinking skills (reflecting, reframing and system thinking) have significant effect on the cost
dimension of competitive advantage.
H02: Strategic thinking skills (reflecting, reframing and system thinking) has significant effect on the quality
dimension of competitive advantage
H03: Strategic thinking skills (reflecting, reframing and system thinking) has significant effect on the flexibility
dimension of competitive advantage
H04: Strategic thinking skills (reflecting, reframing and system thinking) have significant effect on the delivery
dimension of competitive advantage.
This impact of the independent variables on the dependent variables in these models is going to be considered
significant at (0.05) or less.
8. Results of Testing the Research Hypotheses
Following are the results of testing the research hypotheses after applying multiple regression analysis:
Model one: Y1= a+b1x1+ b2x2+ b3x3+ b4x4
Y1 (Dependent variable) is cost dimension of competitive advantage
Table 4 shows the results of testing the goodness of fit of model one. Results indicated that the f-statistics is
2.666 and the related significance is 0.05. Based on these values the model is fit for testing the hypotheses.
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Table 4. Result of testing model one goodness of fit
Model Sum of Squares df Mean Square F Sig.
Regression 2.837 3 .946 2.666 .052a
Residual 33.702 95 .355
Total 36.540 98
a. Predictors: (Constant), System Thinking, reframing, Reflecting
b. b. Dependent Variable: Cost Dimension
Table 5 shows the parameters related to testing hypotheses in this model. As indicated, both reflecting and
system thinking has no significant effect on the cost dimension of competitive advantage, therefore both null
hypotheses are accepted. On the other hand, reframing has a moderate significant effect (p=0.07), which permits
researchers to reject the null hypothesis and conclude that reframing as a skill of strategic thinking may influence
the cost dimension of competitive advantage moderately.
Table 5. Results of testing hypotheses for model one
Model Unstandardized
Coefficients
Standardized Coefficients t Sig.
B Std. Error Beta
(Constant) 2.378 .553 4.299 .000
Reframing .212 .118 .187 1.800 .075
Reflecting .143 .163 .127 .877 .383
SystemThinking .045 .176 .036 .256 .799
a. Dependent Variable: Cost Dimension
Model two: Y2 = a + b1x1+ b2x2+ b3x3
Y2 (dependent variable) is the quality dimension of competitive advantage. Results of testing the goodness of fit
for this model are shown in Table (6) below. Since f-stat is 4.531 and its significance is 0.005, researchers
concluded that the goodness of fit of this model is significant and therefore model is fit for testing the
hypotheses.
Table 6. Results of testing model two for goodness of fit
Model Sum of Squares df Mean Square F Sig.
Regression 6.238 3 2.079 4.531 .005a
Residual 43.598 95 .459
Total 49.836 98
a. Predictors: (Constant), System Thinking, reframing, Reflecting
b. Dependent Variable: Quality Dimension
Table 7 shows the results of testing the hypotheses in this model. As shown, reflecting has highly significant
effect (p= 0.004) and system thinking has a moderate effect on the quality dimension of competitive advantage.
On the other hand no significant effect of reframing was detected.
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Table 7. Results of testing the hypotheses for model two dependent variable: quality dimension
Model Unstandardized
Coefficients
Standardized Coefficients t Sig.
B Std. Error Beta
(Constant) 2.453 .629 3.898 .000
Reframing .194 .134 .147 1.450 .150
Reflecting .540 .185 .410 2.916 .004
System
Thinking
-.350 .200 -.241 -1.746 .084
a. Dependent Variable: Quality Dimension
Model three: Y3 = a + b1x1 +b2x2 + b3x3
Y3 (dependent variable) is the flexibility dimension of competitive advantage.
As shown in Table 8, model three has highly significant goodness of fit since f-stat is 5.754 and its significance
is 0.001 which indicate that the model is fit for testing the hypotheses.
Table 8. Results of testing model three goodness of fit
Model Sum of Squares Df Mean Square F Sig.
Regression 5.210 3 1.737 5.754 .001a
Residual 28.673 95 .302
Total 33.883 98
a. Predictors: (Constant), System Thinking, reframing, Reflecting
b. Dependent Variable: Flexibility Dimension
Results of testing the model hypotheses are shown in Table 9. As indicated, both null hypotheses for reframing
and system thinking were accepted, indicating that they have no significant effect on the flexibility dimension of
competitive advantage.
On the other hand, the null hypothesis is rejected at (p= 0.033) , concluding that reflecting has significant effect
on the flexibility dimension of competitive advantage.
Table 9. Results of testing the hypotheses for model three
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
(Constant) 2.079 .510 4.074 .000
Reframing .110 .109 .101 1.009 .315
Reflecting .326 .150 .300 2.168 .033
System Thinking .076 .162 .063 .466 .642
a. Dependent Variable: Flexibility Dimension
Model four: Y4 = a + b1x1 +b2x2 + b3x3 + b4x4
Y4 (dependent variable) is the delivery dimension of competitive advantage.
Table 10 shows the results of testing model four's goodness of fit. As indicated, the model is fit since f-stat is
2.836 and its significance is 0.042. Therefore the model is fit for hypotheses testing.
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Table 10. Results of testing model four goodness of fit
Model Sum of Squares df Mean Square F Sig.
Regression 6.970 3 2.323 2.836 .042
Residual 77.827 95 .819
Total 84.797 98
a. Predictors: (Constant), System Thinking, reframing, Reflecting
b. Dependent Variable: Delivery Dimension
Table 11 shows the Statistic parameters for testing these model hypotheses. As shown, null hypotheses related to
reframing and system thinking were accepted, indicating that both strategic thinking skills do not have any
significant effect on the delivery dimension of competitive advantage.
On the other hand, null hypothesis related to the effect of reflecting was rejected concluding that reflecting as a
strategic thinking skill has significant effect on the delivery dimension of competitive advantage.
Table 11. Results of testing the hypotheses for model four
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
(Constant) 1.973 .841 2.347 .021
Reframing .199 .179 .115 1.111 .270
Reflecting .490 .248 .285 1.981 .051
System Thinking -.164 .268 -.087 -.612 .542
a. Dependent Variable: Delivery Dimension
9. Conclusions and Discussions
As presented in the previous section, results of testing the research hypotheses yielded the following
conclusions:
1- The constant was always significant in all models indicating that there are other independent variables other
than those included in the model which have significant effect on competitive advantage in the four dimensions
used in this research.
2- Reflecting as a skill of strategic thinking has always been significant in all models except in model one
(cost dimension) indicating that it has the most effect on all dimensions of competitive advantage. The values of
t and alpha were 2.916 at 0.004 for quality for flexibility, 2.168 at .03, and 1.981 at 0.05 level of significance for
delivery dimension.
3- Reframing as a skill in strategic thinking has a slightly positive non-significant effect on the dimensions of
competitive advantage in all models.
4- System thinking as a skill in strategic thinking has a very week negative non-significant effect on the
dimensions of competitive advantage in all models.
These results allows researchers to conclude that, in this sample only reflecting as a skill in the process of
strategic thinking has a constant and significant effect on all dimensions of competitive advantage except the
cost dimension.
This results might have been materialized because of the fact that Reflecting refers to the ability of a leader to
integrate logical and rational thinking processes together using experience, perception and information to make
sound judgement about certain state of affair then initiate a concept that guides what would happen at present
and help guide the future perspective.
Such skill seems to be the most important strategic thinking skill due to its close relation to decision making. In
the final analysis, decision making capability of a strategic leader is so vital for the leader to deal with current as
well as future complex circumstances.
Finally future research on this topic should be extended to include other sectors of the Jordanian economy such
as industrial sector so that a better understanding of the relationships embedded in this study results can be
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realized.
One limitation of the research is that it is restricted to one country and a sample from one industry namely the
banking sector in Jordan which led to a small sample size. The cross sectional nature of the research may also be
considered as one more limitation for the current research.
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... They would be willing to question their assumptions and test whether their behaviours result in desired outcomes. Ahmed & Ayat (2018) affirmed that reflection enables one to use perceptions, experiences, and knowledge to understand situations, how to think about them and inform action. ...
... Systems thinking requires that the leader understands that he or she is part of a feedback process, not standing apart from one (Ahmed & Ayat, 2018). This understanding represents a profound shift in awareness that connectivity between members of organisations influences how a system works. ...
... Systems thinking in this paper refers to leaders' ability to see systems holistically by understanding the properties, forces, patterns, and interrelationships that shape the systems' behaviours that provide options for actions. This definition requires that leaders think holistically, defining the entire problem by extracting patterns in the information one collects before breaking the problem into parts Ahmed and Ayat (2018). This capability enables someone to understand how facts relate to each other. ...
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The focus of this study is on strategic thinking and competitive advantage in the Nigerian pharmaceutical industry. Competition is now based on knowledge, technology and the ability to serve customers fast and repeatedly. These are functions of strategic thinking in an organisation. We disaggregated strategic thinking into systems thinking, reflective thinking and creative thinking to ascertain their level of impact on the competitive advantage of firms in the pharmaceutical industry. Using data obtained from 91 employees drawn from three pharmaceutical companies in Nigeria, we adopted the Principal Component Analysis (PCA) technique in analysing the data. The analysis found significant effects of systems and creative thinking on the competitive advantage of pharmaceutical firms in Nigeria. In contrast, reflective thinking was not a significant component of the firm’s competitive advantage. The extraction effects of the components revealed that encouragement of individual employees through seeking their ideas on key decisions, leaders being part of the feedback process in the organisation, participative discussions and enhancement of practical skills of employees accounted for high variance in the firm’s strategic thinking and competitive advantage. The study concluded that companies in the Nigerian pharmaceutical industry have more attachment to systems thinking and creative thinking than reflective thinking. Part of the recommendations was adopting the strategic thinking process of plan, act, observe, reflect and plan again to enhance their competitive advantage in the pharmaceutical industry.
... changes in business activities are capable of disrupting the operations in businesses, but change they say is inevitable for all businesses. Al-Qatamin and Esam (2018) aver that all business entities encounter dynamic and sometimes complex situations occasioned by huge discontinuities that take place in a typical business environment. In such a constantly changing environment, organizations require a strategic look at issues. ...
... In such a constantly changing environment, organizations require a strategic look at issues. Capturing this, Al-Qatamin and Esam (2018) opine that the changes in the market call for an innovative thinking technique to be able to successfully navigate through the market hurdles. This brings to the fore the concept of strategic thinking. ...
... It is thinking that is lateral, critical, and creative (Alsaaty, 2007). It involves developing an entire set of critical cognitive and analytical skills (Al-Qatamin & Esam, 2018). This is required to get ahead of competitions and sustain the existence of the firm. ...
... 4 th sub hypothesis: there is a statistically significant effect of opportunity thinking on competitive advantage achievement: As it is clear from the statistical results presented in Table ( 4), and from the follow-up of the values of the T-test that after the opportunity thinking has a positive effect on achieving competitive advantage in terms of quality, where the calculated (T) values reached (16,877), which are significant values at the level of significance (0.0 5 ≥α ), and it was also found that after opportunity thinking predicts about 73.6 % as an impact factor of the changes occurring In achieving competitive advantage, which proves the validity and acceptance of the fourth sub-hypothesis. 5th sub hypothesis: there is a statistically significant effect of opportunity thinking on competitive advantage achievement: As it is evident from the statistical results presented in Table ( 5), and from the follow-up of the values of the T-test that after leading the assumptions It has a positive effect on achieving competitive advantage, as the calculated (T) values amounted to (10.309), which are significant values at the level of significance (0.0 5 ≥α), and it was also found that after making assumptions predicts about 51 % as an impact factor of changes in achieving competitive advantage. This proves the validity and acceptance of the fifth sub-hypothesis. ...
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The current study aimed to measure the impact of strategic thinking on achieving competitive advantage in its dimensions (cost-quality-creativity), by conducting a field study on companies working in the field of container handling in the Arab Republic of Egypt, where the study variables were measured through a questionnaire distributed to The workers in the container handling companies in Alexandria and Port Said also measured the median effect of creative abilities, and the results of the questionnaire were analyzed using the SPSS 28 & AMOS 26 programs, and the results of the study concluded that there is a significant and statistically significant effect of strategic thinking on competitive advantage. Keywords:- Strategic Thinking; Competitive Advantage
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Using gamification and video games is one of the modern approaches to cognitive enhancement and improving the abilities and competencies of managers, including strategic thinking skills. Many organizations use video games in the fields of education, marketing, business, and entrepreneurship. This research aimed to investigate the role of video games in enhancing managers’ strategic thinking and their potential contribution to developing cognitive capabilities. The sample included 30 students actively involved in the innovation and entrepreneurship ecosystem. To measure the strategic thinking of the participants, Pisapia’s strategic thinking questionnaire was used, and the CANTAB test was employed to measure their cognitive capabilities. To identify the individuals’ game-playing styles, indicators of micro-management, planning, plan recognition, predictions, gathering resources, partial observability, and damage avoidance were designed. The findings indicated that 53.3 percent of the participants had reflective thinking, 30 percent had systems thinking, and the rest had a reframing thinking style as their strategic thinking dominant dimension. On the other hand, given the identified correlation between the damage avoidance criteria with the thinking and reflective style, as well as the inverse and significant correlation of the gathering resources criteria with the results of the PRM test, it seems that strategic games have the potential to change and even develop some cognitive functions such as attention, reaction, and memory, and can be considered as tools to improve cognitive ability. These games can be used to design tasks to enhance managers’ cognitive abilities and subsequently promote their strategic thinking and decision-making skills.
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هدفت الدراسة إلى قياس وتحليل أثر سلسلة التوريد في تحقيق الميزة التنافسية في الشركات الأردنية لصناعة الأدوية البشرية، وتكون مجتمع الدراسة من (6) شركات أردينة لصناعة الأدوية البشرية. واشتملت وحدة التحليل للدراسة على (320) مديراً في الإدارتين العليا والوسطى بالمــــــــــــــسميات الوظيفية التالية (مدير عام، نائب مدير عام، مساعد مدير، رئيس قسم). وتكونت عينة الدراسة من (250) مفردة تم اختيارها بأسلوب المسح الشامل. واستخدم المنهج الوصفي التحليلي، واستخدمت الاستبانة أداة لجمع البيانات من عينة الدراسة. وتوصــــــلت الدراسة إلى وجود أثر ذي دلالة إحصائية عند مستوى معنوية (α ≤ 0.05) لسلسلة التوريد بأبعادها (تكامل الموردين، التكامل الداخلي، ومشاركة المعلومات) مجتمعة في تحقيق الميزة التنافسية بأبعادها (التكلفة، الإبداع، المرونة والتسليم) مجتمعة في الشركات الأردنية لصناعة الأدوية البشرية. وقد أوصت الدراسة بضرورة تبني الشركات الأردنية لصناعة الأدوية البشرية منهجية سلسلة التوريد للاستفادة من مخرجاتها بتحقيق ميزة تنافسية.
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Purpose: Leadership is a critical factor for individual and organizational success in today's complex and dynamic business environments. Effective leaders possess a wide range of competencies that enable them to inspire, guide, and influence others to achieve common goals. This study examines the concept of leadership competencies and their roles in fostering individual and organizational success. Research methodology: This methodological approach is based on a review of published literature outlining the significance of the leadership competency concept and the four key emerging leadership competencies for organizational performance. Results: The findings indicate the importance of the competency paradigm, which contributes to the quality of leadership. Specifically, key emerging competencies will provide valuable insights for leaders, human resource professionals, and researchers in the field of leadership development. Limitations: The research review method is based on secondary data; hence, it has its limitations. Owing to the evolving dynamic contextual leadership landscape, some crucial leadership competencies may emerge over time in some geographical organizational contexts. This necessitates a continual study and analysis of the evolving trends in emerging leadership competencies in organizations. Contribution: This study contributes to enhancing insights and knowledge of leadership development. Other concepts discussed include the competency definitions, competency model, skill-based model, and integrative competency framework. Novelty: The research and discussion on the proposed integrative emerging leadership competencies add to the merit of this paper. There is evidence that the competency framework results in individual and organizational performance.
Chapter
This study aimed to address the issue of strategic thinking at non-governmental organizations in Jordan & investigate whether strategic thinking has any impact on the performance of these organizations. It also aimed at finding out whether the top manager's demographic characteristics have moderating effects on the relationship between strategic thinking and organization performance. The study sample consisted of (262) top managers of non-governmental organizations in Jordan. The primary data of the study collected by questionnaire. SPSS, AMOS, and Smart PLS software utilized to conduct the statistical analysis process. The results show a positive impact of strategic thinking on the on performance. Furthermore, the study will hopefully be beneficial for policymakers & all organizations interested in boosting the role of NGOs. This research recommends the organizations to promote and support the adoption of strategic thinking factors for NGO managers and related institutions to improve the level of performance and quality of services provided such as developing training programs specialized in strategic thinking topics and organizing training workshops to discuss the real cases and companies' experiences inside and outside Jordan.
Thesis
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أثر القدرات الإبداعية على العلاقة بين التفكير الاستراتيجي وتحقيق الميزة التنافسية في محطات تداول الحاويات في جمهورية مصر العربية هدفت الدراسة الحالية إلى قياس أثر ممارسات التفكير الإستراتيجي على تحقيق الميزة التنافسية في محطات تداول الحاويات في جمهورية مصر العربية وتقييم الدور الوسيط للقدرات الإبداعية بين المتغير المستقل والمتغير التابع، من خلال تحليل بيانات الاستبيان الذي تم الحصول عليه من خلال الحصر الشامل الجزئي (104) مفردة من عينة الدراسة، ولاستعراض نتائج الدراسة التي تم الحصول عليها قام الباحث فيما يلي بتحليل البيانات التي قد تم الحصول عليها من عدد 104 من الإدارة الوسطى والإدارة العليا بالشركات محل الدراسة. وقد تم استخدام برنامج 28SPSS وAMOS26 لتحليل البيانات التي تم الحصول عليها، وهم من البرامج الإحصائية المشهورة، ومن خلال هذه البرامج تم الحصول على تحليل وصفي للمواصفات الديموغرافية للعينة، إلى جانب اختبار فرضيات الدراسة، حيث تم التوصل للنتائج التالية: - وجود أثر معنوي ذو دلالة إحصائية للتفكير الاستراتيجي على تحقيق الميزة التنافسية، ونجد أن أكثر أبعاد التفكير الاستراتيجي تأثيرا من حيث جودة الخدمة، ومن حيث محور التكلفة بعد التفكير في الوقت، أما بالنسبة لبعد الإبداع فكان أكثر ممارسات التفكير الاستراتيجي بعد قيادة الافتراضات، وقد اتفقت النتيجة الحالية مع نتائج الدراسات السابقة مثل: (الوحيدي وآخرون،2020، حسين،2018، تيراب،2015) - وجود أثر معنوي ذو دلالة إحصائية للتفكير الاستراتيجي على القدرات الإبداعية، وكان أكثر الأبعاد تأثيرا قيادة الافتراضات، وقد اتفقت النتيجة الحالية مع نتائج الدراسات السابقة مثل: (ترغينى،2015) - وجود أثر معنوي ذو دلالة إحصائية للقدرات الإبداعية على تحقيق الميزة التنافسية، وكان أكثر تأثيرا على محور الابداع. - القدرات الإبداعية تتوسط العلاقة بين التفكير الاستراتيجي، وتحقيق الميزة التنافسية جزئيا. الكلمات الدلالية: التفكير الاستراتيجي، الميزة التنافسية، القدرات الإبداعية.
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Purpose The purpose of this study is to explain the interrelationships between the elements of strategic thinking, technological change and strategic risks. The main objective of this research is to identify the hierarchy for the elements of thinking, technological change and strategic risk and also to identify the driving powers of these elements. Design/methodology/approach The methodology used in this study is modified total interpretive structural modelling and MICMAC analysis which gives the interrelationships and also the driving powers of the elements by analysing the relationships between the elements from the existing literature. This method helps us in answering/understanding the “what”, “how” and “why” of the research. Modified total Interpretive structural modeling is considered in this study, which helps in doing both the paired comparisons and transitivity checks simultaneously. A digraph is constructed at the end of the analysis, which shows the links between the elements, and a driver dependence matrix is constructed, which shows the driving powers. Findings This study gives an understanding of the role of the elements, the relationships between them and the hierarchy of addressing these elements, and also the driving and dependence power. Findings of this research give us an understanding of how strategic thinking/technological change/strategic drives the performance of the firm. Research limitations/implications This study is conducted with the help of existing literature; this can be further extended by considering the expert opinion. Practical implications The model explains the direct and transitive links of the elements and the strength of the relation between them, which helps the researchers and the practitioners to understand the driving power and importance of these constructs. It also helps us to understand the role of these elements and, if implemented in an organisation, which elements need to be prioritised for enhancing the performance of the firm. Originality/value Research done in the past has individually analysed the elements effecting strategic thinking; this study identifies the relationships between the elements of all three constructs and helps in understanding the levels of hierarchy.
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This paper aims to examine the influence of innovation on competitive advantage in foods manufacturing SMEs in Malaysia and the moderating effects of firm age on innovation-competitive advantage relationship. Given the correlational nature of research, the researchers adopted a random sampling technique in Malaysian foods manufacturing SMEs. Mailed structured questionnaires were employed for the collected 220 foods manufacturing SMEs. Both descriptive and inferential statistics were used to answer the objectives and hypotheses of the study. Finding of the study revealed that innovation has a strong positive impact on the competitive advantage, in which innovation contributes 73.5 percent variance in competitive advantage. The results indicate that SMEs should invest in innovation to gain competitive advantage. The study also found the moderating effect of firm age on the influence of innovation on competitive advantage. The study suggests a framework for analyzing the impact of innovation on competitive advantage to be applied in other settings of Malaysian SMEs. The findings of this study may be used as a guideline for entrepreneurs to establish network with research organization and universities for innovative activities or program which ultimately may gain competitive advantage in the marketplace. This study contributed to the literature by empirically investigating the effect of innovation on competitive advantage, specifically in foods manufacturing SMEs in Malaysia. Findings and implications of the study are also discussed in this paper.
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Business schools and others interested in management education and development have vigorously debated how best to teach strategy to future leaders. Some experts have questioned whether the topic should be taught at all - or at least whether it should be taught to managers. Often missing from the debate, however, has been any in-depth discussion of how individuals learn to think strategically in the first place. What specific experiences are important and how do they contribute? Moreover, what are the different ways in which people absorb those experiences to develop the ability to think strategically? To answer these and other questions, the author conducted a study that identified executives who were considered the top strategic thinkers in their industry. The study then investigated the totality of experiences (educational, job related or other) that contributed to the high ability of those individuals. In addition, the research investigated the different ways in which the executives acquired their expertise in strategic thinking - a process that typically took more than a decade The data showed that strategic thinking arises from 10 specific types of experiences -for instance, spearheading a major growth initiative or dealing with a threat to organizational survival. Moreover, executives appear to gain their expertise in strategic thinking through one of three developmental patterns. These findings help demystify the process by which strategic thinking is learned, offering important implications for management development and the practice of strategy. Copyright © Massachusetts Institute of Technology, 2007. All rights reserved.
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The ability to think strategically is critical for managers at multiple organizational levels, yet we know little about how this ability develops in individuals. Drawing on literature in strategy, cognitive science and adult learning, we propose a model of learning to think strategically that follows the ‘learning school’ of strategy making (Mintzberg et al., 1998). The model depicts a dynamic, interactive, and iterative experiential learning process. It identifies individual factors, work experiences and organizational factors that contribute knowledge and act together to develop the ability to think strategically. Areas for research are suggested to better understand the learning process.
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The ability to think strategically is critical for leaders and managers at multiple organizational levels. Specific work experiences can contribute to the development of an individual’s strategic thinking ability. Culture, among other organizational factors, can either encourage or limit those contributions. Leaders, as culture constructors and transformers, can act to maximize the relationship between organizational culture and the process of learning to think strategically. A cadre of formal training, developmental activities, and self-directed learning initiatives can provide leaders with the skills to enhance the strategic thinking of those they lead.
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A new model of managerial problem formulation is introduced and developed to answer the question: ‘What kinds of problems do strategic managers engage in solving and why?’ The article proposes that a key decision metric for choosing among alternative problem statements is the computational complexity of the solution algorithm of alternative statements. Managerial problem statements are grouped into two classes on the basis of their computational complexity: P-type problems (canonically easy ones) and NP-type problems (hard ones). The new model of managerial cognitive choice posits that managers prefer to engage with and solve P-type problems over solving NP-type problems. The model explains common patterns of managerial reasoning and decision making, including many documented ‘biases’ and simplifying heuristics, and points the way to new effects and novel empirical investigations of problem solving-oriented thinking in strategic management and types of generic strategies, driven by predictions about the kinds of market- and industry-level changes that managers will or will not respond to. Copyright © 2009 John Wiley & Sons, Ltd.
Strategic thinking: Providing the competitive edge
  • D Mccauley
McCauley, D. (2012). Strategic thinking: Providing the competitive edge. Small Wars Journal, 8(2). Retrieved from http://smallwarsjournal.com/jrnl/art/strategic-thinking-providingthe-competitive-edge
Connecting strategic thinking with product innovativeness to reinforce NPD support process
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Syeda, A. Z. K. et al. (2016). Procedia -Social and Behavioral Sciences. Connecting strategic thinking with product innovativeness to reinforce NPD support process. 12th International Strategic Management Conference, Antalya, Turkey
Understanding Strategic Thinking and Developing Strategic Thinkers
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Waters, D. E. (2011). Understanding Strategic Thinking and Developing Strategic Thinkers. Joint Forces Quarterly, 63, 113-119.
Exploring strategic thinking: Insights to assess, develop, and retain Army strategic thinkers (Research Product
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Wolters, H. M. K., Grome, A. P., & Hinds, R. M. (Eds.) (2013). Exploring strategic thinking: Insights to assess, develop, and retain Army strategic thinkers (Research Product 20131). Fort Belvoir, VA: U.S. Army Research Institute for the Behavioral and Social Sciences. ADA57729.