The Impact of Organizational Factors on Strategic Management Practices of Firms in Jordan

Abstract

Strategic Management (STM) has the ultimate goal of establishing, evaluating, developing and maintaining the organization's position in its markets and activities. This includes extensive knowledge, full awareness, capabilities, assimilation and analysis, and this extends to all aspects of the organization in the environment in which it operates and its community. According to Jordanian businesses, there is a lack of research on how to identify regulatory factors for the successful implementation of STM practices. Consequently, the purpose of this paper was to identify factors affecting STM among companies in Jordan. To achieve this goal, the paper uses empirical data from 261 trading companies in Jordan. 151 valid questionnaires for main study after uncompleted items in their questionnaires were excluded. A structured questionnaire was prepared for data collection. The results showed that regulatory factors in Jordan have a positive and significant impact on STM practices. Moreover, organizational cultures may be another reliable factor to rely on research findings that have shown that most participants strongly agreed that organizational cultures do indeed affect the effectiveness of strategic management. The paper's recommendations included that further research should be conducted on strategic approaches, the moderate impact of organizational culture and the core competencies applying qualitative approaches.