Out of the five key contextual factors, which include organizational size, environment, workforce, technology, and organizational strategy, I believe the latter is the most influential and challenging. The perception of organizational strategy as a contextual influence draws from the fact that it determines the interaction between people and information aspects within the organization. Organizational strategy is an outcome of the measured performance of organizational processes developed by context-aware managers ( Kronsbein et al., 2014). Through context awareness, it is possible to determine the trends in the market and align the company’s processes accordingly to achieve competitiveness. Organizational strategy refers to a plan on allocation and utilization of resources to support business goals. Therefore, organizational strategy is the most important contextual influencer in overcoming competitiveness challenges because it connects all other contextual factors.
The significance of organizational strategy is evident from the fact that it covers corporate, business, and functional levels of strategy. Lloret (2016) found out that organizational strategy allows the company to integrate the critical domains of sustainability-related to market industry, resources, and institutional context. Organizational strategy as a contextual influence determines the activities the company prioritizes in each of its processes ( Kronsbein et al., 2014). The alignment of activities and processes must be a result of contextual awareness, which in this case, covers the company’s ability to undertake specific measures to be competitive. Failure to align the factors amounts to an ineffective organizational strategy. According to Lloret (2016), competitiveness requires constant awareness of the circumstances under which the company stands to lose value. Therefore, failure to institute an organizational strategy that addresses the context in which it operates sets the business up against unprecedented challenges. An organizational strategy incorporates many other factors, allowing the understanding of the relationship and the inherent challenges each present. The information presented above illustrates the vital role organizational plays as a contextual influence because an ineffective strategy breeds failure.
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References
Kronsbein, D., Meiser, D., & Leyer, M. (2014). Conceptualization of contextual factors for business process performance. In Proceedings of the International MultiConference of Engineers and Computer Scientists (Vol. 2, pp. 12-14).
Lloret, A. (2016). Modeling corporate sustainability strategy. Journal of Business Research , 69 (2), 418-425.
