Hostname: page-component-cd9895bd7-gvvz8 Total loading time: 0 Render date: 2024-12-23T04:47:18.122Z Has data issue: false hasContentIssue false
  • English
  • Français

Untangling the value of information scope: An investigation in retail pharmacies

Published online by Cambridge University Press:  02 February 2015

Jennifer L Harrison
Jennifer L Harrison*
Affiliation:
Faculty of Business, Southern Cross University – Tweed Gold Coast Campus, Tweed Heads NSW, Australia
Get access Rights & Permissions [Opens in a new window]

Abstract

This research investigates whether the importance of information scope for decision making mediates the relations between dimensions of strategic orientation, perceived environmental uncertainty (PEU) and organisational effectiveness in the retail pharmacy industry. Data from a survey of NSW pharmacies was analysed using structural equation modelling. Although two dimensions of strategic orientation – product-market development and market scope – were positively associated with information scope, the direct organisational benefits and mediating role of broad scope information were disconfirmed and no link between information scope and PEU was found. The results suggest the need for rethinking theoretical models of information scope. Implications for retail pharmacies and organisations interested in the effectiveness of those businesses are discussed.

Keywords

information systemsenvironmental uncertaintystrategic orientationpharmacies
Type
Research Article
Information
Journal of Management & Organization , Volume 15 , Issue 4 , September 2009 , pp. 470 - 485
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abernethy, MA and Guthrie, CH (1994) An empirical assessment of the ‘fit’ between strategy and management information system design, Accounting and Finance 34(2): 49–66.Google Scholar
Anderson, JC and Gerbing, DW (1988) Structural equation modeling in practice: A review and recommended two-step approach, Psychological Bulletin 103(3): 411–423.Google Scholar
Ashill, NJ and Jober, D (2001) Defining the information needs of senior marketing executives: An exploratory study, Qualitative Market Research: An International Journal 4(1): 52–60.Google Scholar
Baumgartner, H and Homburg, C (1996) Applications of structural equation modeling in marketing and consumer research: A review, International Journal of Research in Marketing 13: 139–161.Google Scholar
Boulianne, E (2007) Revisiting fit between AIS design and performance with the analyzer strategic-type, International Journal of Accounting Information Systems 8(1): 1–16.Google Scholar
Bowens, J and Abernethy, MA (2000) The consequences of customization on management accounting system design, Accounting, Organizations and Society 25(3): 221–241.Google Scholar
Byrne, BM (2001) Structural equation modeling with AMOS: Basic concepts, applications, and programming, Lawrence Erlbaum, Mahwah NJ.Google Scholar
Chenhall, RH and Morris, D (1986) The impact of structure, environment, and interdependence on the perceived usefulness of management accounting systems, The Accounting Review 61(1): 16–35.Google Scholar
Chong, VK and Chong, KM (1997) Strategic choices, environmental uncertainty and SBU performance: A note on the intervening role of management accounting systems, Accounting and Business Research 27(4): 268–276.Google Scholar
Craig, JBL, Cassar, G and Moores, K (2006) A 10-Year longitudinal investigation of strategy, systems, and environment on innovation in family firms, Family Business Review 19(1): 1–10.Google Scholar
Cudeck, R and Browne, MW (1983) Cross-validation of covariance structures, Multivariate Behavioral Research 18(2): 147–167.Google Scholar
Dess, GG and Davis, PS (1984) Porter's (1980) generic strategies as determinants of strategic group membership and organizational performance, Academy of Management Journal 27(3): 467–488.Google Scholar
Dess, GG and Robinson, RB (1984) Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit, Strategic Management Journal 5: 265–273.Google Scholar
DeVellis, RF (1991) Scale development: Theory and applications, Sage, Newbury Park.Google Scholar
Doty, DH, Glick, WH and Huber, GP (1993) Fit, equifinality, and organizational effectiveness: A test of two configurational theories, Academy of Management Journal 36(6): 1196–1250.Google Scholar
Ewusi-Mensah, K (1981) The external organisational environment and its impact on management information systems, Accounting, Organizations and Society 6(4): 301–316.Google Scholar
Fisher, J (1995) Contingency-based research on management control systems: Categorization by level of complexity, Journal of Accounting Literature 14: 24–53.Google Scholar
French, SJ, Kelly, SJ and Harrison, JL (2004) The role of strategic planning in the performance of small, professional service firms: A research note, Journal of Management Development 23(8): 765–776.Google Scholar
Gaidiene, Z and Skyrius, R (2006) The usefulness of management accounting information: Users' attitudes, Ekonomika 74: 21–37.Google Scholar
Galbraith, JR (1969) Solving production smoothing problems, Management Science 15(12): B–665-B674.Google Scholar
Gerbing, DW and Anderson, JC (1988) An updated paradigm for scale development incorporating unidimensionality and its assessment, Journal of Marketing Research 25: 186–192.Google Scholar
Gerloff, EA, Muir, NK and Bodensteiner, WD (1991) Three components of perceived environmental uncertainty: An exploratory analysis of the effects of aggregation, Journal of Management 17(4): 749–768.Google Scholar
Gordon, LA, Larcker, DF and Tuggle, FD (1978) Strategic decision processes and the design of accounting information systems: Conceptual linkages, Accounting, Organizations and Society 3(3/4): 203–213.Google Scholar
Gordon, LA and Miller, D (1976) A contingency framework for the design of accounting information systems, Accounting, Organizations and Society 1(1): 59–69.Google Scholar
Gordon, LA and Narayanan, VK (1984) Management accounting systems, perceived environmental uncertainty and organizational structure: An empirical investigation, Accounting, Organizations and Society 9(1): 33–47.Google Scholar
Gorry, GA and Scott Morton, MS (1971) A framework for management information systems, Sloan Management Review Fall: 55–70.Google Scholar
Govindarajan, V (1984) Appropriateness of accounting data in performance evaluation: An empirical examination of environmental uncertainty as an intervening variable, Accounting, Organizations and Society 9(2): 125–135.Google Scholar
Govindarajan, V (1988) A contingency approach to strategy implementation at the business-unit level: Integrating administrative mechanisms with strategy, Academy of Management Journal 31(4): 828–853.Google Scholar
Guilding, C (1999) Competitor-focused accounting: An exploratory note, Accounting, Organizations and Society 24: 583–595.Google Scholar
Guilding, C and Cravens, KS (2000) An empirical study of the application of strategic management accounting techniques. Paper presented at the 2000 Annual Conference of the Accounting Association of Australia and New Zealand, 07, Hamilton Island Queensland.Google Scholar
Hair, JFJ, Anderson, RE, Tatham, RL and Black, WC (1998) Multivariate data analysis, 5th edn. Prentice Hall, Upper Saddle River NJ.Google Scholar
Harrison, JL and Kelly, SJ (2006) Business relationships and perceived environmental uncertainty: Should I stay or should I go now? Proceedings of the 20th Annual Conference of the Australian and New Zealand Academy of Management, 12, Yeppoon Queensland.Google Scholar
Hindle, K and Cutting, N (2002) Can applied entre-preneurship education enhance job satisfaction and financial performance? An empirical investigation in the Australian pharmacy profession, Journal of Small Business Management 40(2):162–167.Google Scholar
Hirsch, PM and Levin, DZ (1999) Umbrella advocates versus validity police: A life-cycle model, Organization Science 10(2): 199–212.Google Scholar
Hitt, MA (1988) The measuring of organizational effectiveness: Multiple domains and constituencies, Management International Review 28(2): 28–40.Google Scholar
Hu, L-t and Bentler, PM (1999) Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives, Structural Equation Modeling 6(1): 1–55.Google Scholar
James, LR, Mulaik, SA and Brett, JM (2006) A tale of two methods, Organizational Research Methods 9(2): 233–244.Google Scholar
Jauch, LR and Kraft, KL (1986) Strategic management of uncertainty, Academy of Management Review 11(4): 777–790.Google Scholar
Jöreskog, KG (1993) Testing structural equation models, in Bollen, KA & Long, JS (Eds) Testing Structural Equation Models, pp. 294–316, Sage, Newbury Park CA.Google Scholar
Kald, M, Nilsson, F and Rapp, B (2000) On strategy and management control: The importance of classifying the strategy of the business, British Journal of Management 11: 197–212.Google Scholar
Kaplan, RS and Norton, DP (1992) The balanced scorecard: Measures that drive performance, Harvard Business Review 70(1): 71–79.Google Scholar
Kaplan, RS and Norton, DP (1996) Using the balanced scorecard as a strategic management system, Harvard Business Review 74(1): 75–85.Google Scholar
Ketchen, DJJ, Thomas, JB and Snow, CC (1993) Organizational configurations and performance: A comparison of theoretical approaches, Academy of Management Journal 36(6): 1278–1313.Google Scholar
Langfield-Smith, K (1997) Management control systems and strategy: A critical review, Accounting, Organizations and Society 22(2): 207–232.Google Scholar
Larcker, DF (1981) The perceived importance of selected information characteristics for strategic capital budgeting decisions, The Accounting Review 56(3): 519–538.Google Scholar
Lev, B (1975) Environmental uncertainty reduction by smoothing and buffering: An empirical verification, Academy of Management Journal 18(4): 864–871.Google Scholar
Levitin, AV and Redman, TC (1998) Data as a resource: Properties implications and prescriptions, Sloan Management Review 40(1): 89–101.Google Scholar
Lachman, R and Wolfe, RA (1997) The interface of organizational effectiveness and corporate social performance: Opportunities for research and theory development, Business and Society 36(2): 194–214.Google Scholar
Lindsay, RM (1995) Reconsidering the status of tests of significance: An alternative criterion of adequacy, Accounting, Organizations and Society 20(1): 35–53.Google Scholar
Loehlin, JC (1998) Latent variable models: An introduction to factor, path, and structural analysis, 3rd edn. Lawrence Erlbaum, Mahwah NJ.Google Scholar
Lowry, JF (1990) Management accounting and service industries: An exploratory account of historical and current economic contexts, Abacus 26(2): 159–184.Google Scholar
Malhotra, NK, Kim, SS and Patil, A (2006) Common method variance in IS research: A comparison of alternative approaches and a reanalysis of past research, Management Science 52(12): 1865–1883.Google Scholar
Mangaliso, MP (1995) The strategic usefulness of management information as perceived by middle managers, Journal of Management 21(2): 231–251.Google Scholar
Mia, L (1993) The role of MAS information in organisations: An empirical study, British Accounting Review 25: 269–285.Google Scholar
Miles, R and Snow, C (1978) Organizational strategy, structure, and process, McGraw-Hill, New York.Google Scholar
Miller, D (1988) Relating Porter's business strategies to environment and structure: Analysis and performance implications, Academy of Management Journal 31(2): 280–308.Google Scholar
Miller, D, Dröge, C and Toulouse, J-M (1988) Strategic process and content as mediators between organisational context and structure, Academy of Management Journal 31(3): 544–569.Google Scholar
Milliken, FJ (1987) Three types of perceived uncertainty about the environment: State, effect, and response uncertainty, Academy of Management Review 12(1): 133–143.Google Scholar
Morgan, RE and Strong, CA (1997) Market orientation and dimensions of strategic orientation, European Journal of Marketing 32(11/12): 1051–1073.Google Scholar
Morgan, RE and Strong, CA (2003) Business performance and dimensions of strategic orientation, Journal of Business Research 56(3): 163–176.Google Scholar
Otley, D (1980) The contingency theory of management accounting: Achievement and prognosis, Accounting, Organizations and Society 5(4): 413–428.Google Scholar
Otley, D (1999) Performance management: A framework for management control systems research, Management Accounting Research 10(4): 363–382.Google Scholar
Pedhazur, EJ (1982) Multiple regression in behavioral research: Explanation and prediction, 2nd edn. Harcourt Brace Jovanovich, Fort Worth TX.Google Scholar
Pharmacy Guild of Australia (2001) 2001 Guild digest: Financial survey of Australian community pharmacy performance, CD-ROM.Google Scholar
Ping, RAJ (2002) Relationship commitment and opportunistic behavior, paper presented at the 2002 Summer American Marketing Association Conference, Robert Ping's Research Page, accessed at http://www.wright.edu/~robert.ping/research1.htm on 23 July 2002.Google Scholar
Ping, RAJ (2004) On assuring valid measures for theoretical models using survey data, Journal of Business Research 57(2): 125–141.Google Scholar
Porter, M (1980) Competitive strategy, Free Press, New York.Google Scholar
Segev, E (1989) A systematic comparative analysis and synthesis of two business-level strategic typologies, Strategic Management Journal 10: 487–505.Google Scholar
Simon, HA (1955) A behavioral model of rational choice, Quarterly Journal of Economics 69(1): 99–118.Google Scholar
Simon, HA (1987) Making management decisions: The role of intuition and emotion, Academy of Management Executive 1: 57–64.Google Scholar
Simons, R (1987) Accounting control systems and business strategy: An empirical analysis, Accounting, Organizations and Society 12(4): 357–374.Google Scholar
Simons, R (1995) Levers of control: How managers use innovative control systems to drive strategic renewal, Harvard Business School Press, Boston.Google Scholar
Steers, RM (1975) Problems in the measurement of organizational effectiveness, Administrative Science Quarterly 20(4): 546–558.Google Scholar
Thompson, JD (1967) Organizations in action, McGraw-Hill, New YorkGoogle Scholar
Tymon, WG, Stout, DE and Shaw, KN (1998) Critical analysis and recommendations regarding the role of perceived environmental uncertainty in behavioral accounting research, Behavioral Research in Accounting 10: 23–46.Google Scholar
Vandenbosch, B (1999) An empirical analysis of the association between the use of executive support systems and perceived organizational competitiveness, Accounting, Organizations and Society 24: 77–92.Google Scholar
Venkatraman, N (1989) Strategic orientation of business enterprises: The construct, dimensionality, and measurement, Management Science 35(8): 942–962.Google Scholar
Venkatraman, N and Ramanujam, V (1986) Measurement of business performance in strategy research: A comparison of approaches, Academy of Management Review 11(4): 801–814.Google Scholar
Vorhies, DW and Harker, M (2000) The capabilities and performance advantages of market-driven firms: An empirical investigation, Australian Journal of Management 25(2): 145–171.Google Scholar