Strategies of South African professional firms: An empirically grounded typology

Bo ha, Fai h; O kin, Ma k A icle S a egies o Sou h A ican p o essional i ms: An empi ically g ounded ypology Sou h A ican Jou nal o Business Managemen P o ided in Coope a ion wi h: Uni e si y o S ellenbosch Business School (USB), Bell ille, Sou h A ica Sugges ed Ci a ion: Bo ha, Fai h; O kin, Ma k (1993) : S a egies o Sou h A ican p o essional i ms: An empi ically g ounded ypology, Sou h A ican Jou nal o Business Managemen , ISSN 2078-5976, A ican Online Scien i ic In o ma ion Sys ems (AOSIS), Cape Town, Vol. 24, Iss. 4, pp. 109-117, h ps://doi.o g/10.4102/sajbm. 24i4.871 This Ve sion is a ailable a : h ps://hdl.handle.ne /10419/218105 S anda d-Nu zungsbedingungen: Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen Zwecken und zum P i a geb auch gespeiche und kopie we den. Sie dü en die Dokumen e nich ü ö en liche ode komme zielle Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich machen, e eiben ode ande wei ig nu zen. So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen (insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en, gel en abweichend on diesen Nu zungsbedingungen die in de do genann en Lizenz gewäh en Nu zungs ech e. Te ms o use: Documen s in EconS o may be sa ed and copied o you pe sonal and schola ly pu poses. You a e no o copy documen s o public o comme cial pu poses, o exhibi he documen s publicly, o make hem publicly a ailable on he in e ne , o o dis ibu e o o he wise use he documen s in public. I he documen s ha e been made a ailable unde an Open Con en Licence (especially C ea i e Commons Licences), you may exe cise u he usage igh s as speci ied in he indica ed licence. h ps://c ea i ecommons.o g/licenses/by/4.0/ S.A J .Bus.Mgm 1993,24( 4) S a egies o Sou h A ican p o essional i ms - an empi ically g ounded ypology Fai h Bo ha* & Ma k O kin Facul y o Managemen , Uni e si y o he Wi wa e s and, 2 S Da id's Place, P.-k own, Johannesbu g 2193 Republic o Sou h A ica Recei ed Feb ll lTJ 1992, accep ed l11M 1993 P o essional o ~aniza ions a e acu_i~ a _num~ o en ~nmen al challenges in Sou h A ica in he 1990s. The op ions open o hem m. success ul~y ~s1 1o ung heu o ganiza ions in he ace o hese challenges p esen ed he esesch p oblem. P o essional o gan~1ons we e esea ched om he pe spec i e o in eg a ed .-che ypes o o ganiza ional o m, s a e~ and he ~~pbons and_ alues o~ he op managemen eam. The ese.-ch wu conduc ed on 56 p omi- nen p~ e~1onal o gamzall_ons oi:n six p o essions in Sou h A ica, wi h an induc i e esea ch app oach being aken. Theo y indica ed ou possible op lons and _ h ~ ins um~n s we e de eloped and es ed o es he heo y .-nong he pa ne s and s akehol~e s o_ ~ ums. Mul 1 a ia e echniques o ac o and clus e analysis we e applied o he esuk- ing da a, and ~e indings ~~1ca ed i e b oad con igu a ions o adap a ion, h ee o which concu ed wi h he heo y, he. ~ou h which w~ pos~llon~ ac oss he bounda ies o wo o he heo e ical op ions, and he i h which w• pos1 1oned along a hud dimension o ha sugges ed by he heo y, namely, ha o he collec i e alues o he op managemen eam. I appea ed ha a la ge numbe o p o essional o ganiza ions in Sou h A ica s ill ope a&e suc- cess ully om he basis o hei p o essional epu a ion, bu ha equally, a numbe ha e also adop ed mo e inno a i e app oaches. P o essionele o ganisasies in Suid-A ilca kom in die 1990's oo 'n hele paa omgewingsuildagings e s aan. Die moon likhede om hullesel e midde an die ui dagings sukses ol e posisionee , is onbepe en be die na o sinp- p obleem opgelewe . P o essionele o ganisasie is nage o s anui die pe spek ie an gein eg ee de a ge ipiese o gani- sa o iese s uk u e, s a egiee en die pe sepsies en waa des an die opbes uu span. Die na o sing is gedoen op 56 p o- minen e p o essionele o ganisasies in Suid-A ika en 'n induk iewe benade ing is en opsig e an die na o sing ge- olg. Die eo ie be ie moon like opsies ui gewys en d ie ins umen e is on wild el en ge oe s en einde die eo ie onde enno e en belanghebbendes e oe s. Mul i e ande like egnieke, naamlik ak o egnieke en g oepsanalise is op die da a oegepas en die be indinge be y b ec! aanpassings uk u e aangedui, waa an d ie me die ieo ie oo eenge- s em be , die ie de oo die g ense an wee keuses geposisionee is en die y de wa langs 'n de de dimensie wal deu die eo ie aangedui is, geposisionee is, naamlik die kollek iewe waa des an die opbes uu span.. Di be oo gekom aso 'n g oo aan al p o essionele o ganisasies nog s eeds sukses ol anui die basis an hulle p o essiooele epu uie unl sionee , maa da daa eweneens ook 'n aan al was wa mee inno e ende benade ings oep•. • Au ho o whom co espondence should be add essed. ()IJ In oduc ion The g owing body o knowledge abou o ganiza ional be- ha iou (co e ing such a eas as s uc u e, s a egy, cul u e, decision-making and he in e ace be ween o ganii.a ions and hei en i onmen s) has been limi ed o indus ial o ganiza ions abou which in onna ion is eadily a ailable, and has la gely neglec ed p o essional se ice o ganii.a ions. The a ious s a egic ypologies which ha e been p oposed o indusb'ial and se ice o ganiza ions (Miles & Snow, 1978; Po e , 1980; Mille & F iesen, 1CJ77, e c.) may no co e he cha ac e is ics o p o essional se ice o gani- wions. The lack o such esea ch is pa ly due o he di - icul ies o gaining access o o ganiza ions which deal wi h sensi i e and con iden ial maue s. o hese ci cums ances. The enqui y epo ed below was ac- co dingly unde aken o de elop a gene ic ypOlogy o s a egy, o ganii.a ional adap a ion, and he pe cep ions and alues o he op managemen eam, ha would be applic- able o se ice o ganiza ions in di e en p o essions and ac oss di e en indusuies. Ye he e is e iden need o insigh s in o p o essional se ice o ganiza ions. In he 1990s hey a e ha ing o change hei adi ional modus ope andi unde he impac o ex e nal socio-economic ac o s, echnology. and inc easing compe i ion om non-p o essional inns. They consequen ly show signs o eaching a ma u e s age o hei e olu ion. such as declining p o ias, and a e lhe e o e inc easing hei ma ke ing ac i i y, despi e adi ionally ha ing disdained 'comme cialism' as con a y o he p o essional e hic. Howe e , no esea ched models exis ed o he s a egic and o ganiza ional adap a ion o p o essional o ganiza ions Theo e ical e iew Typologies o o ganiza ions and s a egies The ini ial obse a ion o Anckews (1971) ha lhe Sl .llqy o an o gani7.a ion is an a ul alignmen o en iauillliCOI. ~ sou ces and alues was di e en ia ed by Ho e 's (197S) con ingency heo y o s a egy, which suggesaoo lha business-le el s a egies could be classi ied i llo gene ic g oups ei he on a b oadly applicable basis (Abell, 1980; Miles & Snow, 1CJ78; Pa e , 1980), o o a ious con- ingency si ua ions (Ho e , 1980; Ha igan, 1983, 1985; Woo & Coope , 1981). O ganiz.a ions hemsel es ha e also been classi ied in o a che ypes o 'ga alu' in Falley & Al- dag's (1978) ypOlogy and lhe s udies by Mille & F iesen (1977, 1980). Howe e , nei he o bcsc ypi icalions was done on se ice o ganizalions o lhei s a1egiel. P o essional se ice o ganiza ions di e om indusuiaJ o ganii.a ions in a wmbe o ways. They a c cba acac iz.cd by a high deg ee o sel ~ and collegial coaaol, 110 since only Olhc p o essionals a c held IO be in a posi ion IO e alua e hei pee s. The e is also a g ea deal o pe sonal au onomy in de ining p oblems and gene a ing hei solu- ions, wi hou p essu e om non-membe s o he p o ession. P o essional o ganiza ions a e u he cha ac e ized by a pa icula coupling wi h hei clien o ganiza ions in he se ice p oduc ion p ocess, du ing which he clien e ec - i ely becomes a empo a y employee o he p o essional i m, since he in o ma ion he o she p o ides is he ini ial ' aw ma e ial·. This highly lexible in e ace has been shown IO be c i ical (Mills & Ma gulies, 1980), and he e- o e has IO be conside ed in cons uc ing a model. The e a c wo opposing schools o hough on o ganiza- ions and hei ela ionships wi h hei en i onmen . In he de e minis ic o con ingency school, o ganiza ions a e seen IO be dependen on, and eac i e IO, changes in he en i on- men (Dill, 1958; Eme y & T is , 1965; Law ence & Lo sch. 1967; Pe ow, 1967; Thompson, 1967; and Duncan, 1972). The in e p e i e school, by con as , emphasizes manage ial choice and he en i onmen is ega ded as c ea ed by mem- be s o he o ganiza ion (Weick, 1969; Child, 1972; Mon- ana i, 1978). Howe e , he wo schools a e alike in ending IO de ine he o ganiza ion as he ocal poin and IO pe cei e i s ela ionship o he en i onmen in e ms o esou ces and sou ces o unce ain y (Bou geois & Singh, 1983; Dess, 1987). A hi d. mo e in e ac i e iew, seeks o combine he na u al selec ion wi h he s a egic choice pe spec i es, by emphasizing he adap a ion p ocess in o ganiza ions. I p oposes a ypology o o ganiza ions, and also he s a egic op ions which would be ound in each ype as a dynamic equilib ium is auained be ween o ganiza ions and hei en- i onmen s (H ebiniak & Joyce, 1985). This is illus a ed in Figu e 1. The i s quad an o his model ep esen s high en i on- men al de e mina ion wi h low s a egic choice, and illu- s a es o ganiza ions wo king unde pe ec ly compe i i e ma ke s wi h limi ed op ions. This would include small o ganiza ions selling commodi y- ype p oduc s and la ge o ganiza ions wi h undi e en ia ed se ices, wi h no way o achie ing las ing compe i i e ad an age. The s a egies s a H e g g i h C 0 p L i 0 0 • n I En i onmen al De e mina ion HI g h Low Quad an 2 Quod an 3 La ge, mul i- High isk, special/s inno a o s Quad an 1 Quad an 4 Cos leade s No iden i y Flp e I H ebiniak & Joyce (1985) ypology o o ganiza ions S.-A .Tydsk .Bemy sl.1993,24(4) ound in his quad an co espond o hose o he cos - leade ship ype in Po e 's ( 1980) ypology, o he de ende ype in Miles & Snow's (1978) ypology. The second quad an ep esen s high en i onmen al de e - mina ion wi h high s a egic choice, whe e di e en ia ioo has been made wi hin en i onmen al cons ain s. This is he si ua ion o la ge o ganiza ions in highly egula ed in- dus ies. Focused niches may be achie ed wi hin he con- s ain s h ough ad e ising, lobbying and ma ke ing. The high egula ion sugges s ha p o essional o ganiza ions may well be ound in his quad anL I co esponds o he di e - en ia ion and ocused s a egies o he Po e (1980) ypo- logy o he analy e s a egy o he Miles & Snow (1978) ypology. The hi d quad an ep esen s low en i onmen al de e mi- na ion and high s a egic choice, wi h adap a ion by design. Di e en ia ed o ocused choice may be made, since inno a- ions and p oac i e beha iou a e easie . These o ganiza- ions co espond again o he di e en ia ion and ocused s a egies o he Po e (1980) ypology, bu a e he p o- spec o ypes o he Miles & Snow (1978) ypology. One may expec some p o essional o ganiza ions o all in o his ype by ha ing been p oac i e enough o sus ain a niche posi ion. The ou h quad an ep esen s low en i onmen al de e - mina ion and low s a egic choice. These o ganiza ions wo k unde placid condi ions, and hei s a egies appea o co espond o he uns able eac o ype in he Po e (1980) ypology, wi h no clea membe ship o any s a egic g oup. Some p o essional o ganiza ions may p esumably also all in o his g oup. Top managemen eam The e is also an in e play be ween he en i onmen and he op managemen eams o o ganiza ions h ough he la e 's pe cep ion o and in e ac ions wi h clien s, co-ope a i e o ganiza ions and compe i o o ganiza ions. Hamb ick & Mason (1984), d awing on Child's (1972) s a egic choice pa adigm, ha e p oposed in hei 'uppe echelons' model ha unde condi ions o bounded a ionali y selec ed pe - cep ions and alues will in luence he s a egic choice decision, such as inno a ion, di e si ica ion, acquisi ion and s a egic alliances. In addi ion, pe cep ion o unce ain y in he en i onmen by manage s o he o ganiza ions will in- luence hei s a egic decision-making, and he e o e need o be included in he esea ch model. Finally, co po a e cul u e, in he b oad sense a sha ed o ganiza ional alue sys em, mus be a key elemen in he managemen eam componen o a heo e ical model. In o he wo ds, i is p o- posed ha he pe cep ions and alues o he op manage- men eam add addi ional con ingencies o a p oposed in eg a ed model o s a egy and p o essional o ganiza ion. In eg a ed model o s a egy, p o essional o ganiza ion and he pe cep ions and alues o he op managemen eam On he s eng h o he li e a u e, while being mind ul o he cha ac e is ics o p o essional se ice o ganiza ions, we ha e a i ed a an in eg a ed model, depic ed in Figu e 2. I S.A J .Bus.Mgm 1993,24( 4) p oposes a dynamic in e ac i e sys em, whe eby he s a e- gic choices o he op managemen eam in e ac wi h he o ganiza ions' s a egy, s uc u e and cul u e, as well as wi h aspec s o he en i onmen . o p oduce a ious con igu a- ions o o ganiz.a ional e ec i eness. The shaded a ea su - ounding he a ious in e ac ing uni s ep esen s he in e- g a ion o s a egy, o ganiz.a ion and he p o iles o he op managemen eam as a whole, a imes also including hose componen s o he en i onmen who a e closely in ol ed in he se ice p oduc ion p ocess, such as clien s, compe i o s and o he s a egic s akeholde s (see Figu e 2). Me hodology In o de o assess he model in Figu e 2, a p ima ily induc i e app oach o he esea ch was adop ed, allowing empi ical indings o in ima e he implica ions a he han hypo hesizing hem in de ail in ad ance. Popula ion de ini ion and sampling p ocedu e The choice o p o essions included in he esea ch was based on he classi ica ion by Bennion (1969), who classi- ied he consul ing p o essions unde h ee b oad headings, hose o heal h, igh s and p ope y. The p o essions chosen o he esea ch we e om each o hese h ee ca ego ies: he physician in he heal h ca ego y, he a o ney in he igh s ca ego y, he accoun an om he money ca ego y o p ope y, and a chi ec u e, quan i y su eying and consul ing enginee ing in he land and buildings ca ego y o p ope y. The choice o i ms was limi ed o he la ge i ms wi hin hese six p o essions, since hese we e p esumed o be mo e likely o be un in an explicably o mula ed business-like manne . In he medical p o ession his esul ed in only he specialized a eas o pa hology and adiology being included in he esea ch, since hese specializa ions we e he only ones whe e i ms o any size we e ound. Consul ing engin- ee ing i ms we e es ic ed o mul i-disciplina y i ms, which elimina ed i ms which specialized in pu ely ci il, elec ical o mechanical enginee ing. The popula ion in each p o ession was de e mined Quad an Z Quad an l Top Lo ;•, mum H/ h l•k, Me1ne19emen .,-1o1111 lnnow,H.- Team O anlza lonal :~,·=l:;: Quad an I Quad an 4 El oc l'ienH• Cool .,.,,.,. No l<#nHly I Cllonls, •lobhoi n, oom,..1/lon I I lol/H :ol, •oonomk, ,.,1,1ou-.. I -,. hnologkol on'n onmonl Flp e 2 In eg a ed model o p o essional se ice o ganiza ions 111 duough he use o a quasi-Delphi echnique (Dalkey & Hel- me , 1963), whe eby he opinions o 'expe s', o know- ledgeable indi iduals in he indus ies in which he p o ession ope a ed, we e used The aid o knowledgeable indi iduals a he p o essional associa ions was solici ed o assis in he ini ial iden i ica ion o he majo i ms. The p ocess o ob aining expe opinion was epealed wi h a numbe o o he knowledgeable indi iduals, in- cluding he membe s o he selec ed i ms, un il a inal lis o 96 i ms in he six p o essions was ob ained o he e- sea ch popula ion. Sample design A p obabili y-p opo ional- o-si7.e andom sample o p o es- sional i ms om each p o ession was aken, o ensu e ha cons uc s we e gene a ed and used which would be ep e- sen a i e, and o enhance gene aliz.abili y. Then w iuen pe - mission was ob ained om he pa icipa ing i ms o ap- p oach hei clien s o he pu pose o es ablishing s ake- holde image o he i ms. F om hese lis s a da abase o clien s was buil up o each p o ession, which was e- p esen a i e o he possible clien base which he pa i- cipa ing i ms could ha e. The sample ame o each p o- ession was es ed o adequacy o ep esen a ion agains an ex e nal sou ce, o example, o accoun ing i ms, he sec o s o he Johannesbu g S ock Exchange, and s a e and pa a-s a al o ganiz.a ions we e used. De elopmen and es ing o esea ch ins umen s Th ee esea ch ins umen s we e de eloped and used o measu e he di e en aspec s o he abo e model. The i s wo, combined in o a single ques ionnai e, we e di ec ed o pa ne s o he p o essional o ganiza ions, o measu e he pe cep ions o en i onmen al unce ain y (PEU) which in luence hei decision-making in he p o essional o gani- z.a ions, and he pe sonal alues which we e ega ded as impo an o he pa ne s. The hi d ins umen . co e ing image, was designed o measu e he pe cep ions o s a egy and p o essional o gani- z.a ion, bo h by he pa ne s hemsel es, and by hei clien s and o he s akeholde s in he en i onmen who become ' empo a y employees' o he p o essional o ganiz.a ion du ing he se ice p oduc ion p ocess. In o de o de elop he PEU and alue ques ions, con- s uc s we e elici ed du ing in-dep h in e iews wi h 27 pa - ne s o a sample o 25 p o essional o ganiza ions. The con- s uc s o be used in he image ques ionnai es we e elici ed om he same sample, bu using he Kelly epe o y g id echnique. A lis o 34 en i onmen al i ems and 50 alue i ems we e made om he cons uc s, and 67 esponden s om he sample o 25 o ganiza ions we e eques ed o indica e ag ee- men o disag eemen wi h he i ems on a i e-poin scale. Al og he 90% o he esponden s complied in his phase. The ques ionnai es we e anonymous and dis inguished by he ype o p o ession only. To simpli y he many s a emen s in o mo e economical scales, he ma ices o esponden e- plies we e hen subjec ed o he p incipal componen me hod o ac o analysis. 112 In he case o he pe cep ions o en i onmen al unce - ain y, a solu ion o 13 ac o s wi h eigen alues g ea e han one esul ed, 12 o which we e used o cons uc a seman ic di e en ial scale which was subsequen ly adminis e ed. In he case o he i ems on alues, he ini ial analysis o he 50 i ems dealing wi h alues p oduced a six een- ac o solu ion wi h eigen alues g ea e han one. A sc ee plo o eigen alues agains he numbe o componen s con i med his numbe , and also indica ed a possible nine- ac o solu ion. Howe e , examina ion o he loading o he alue a i- ables con ained in bo h he solu ions did no sugges usable unde lying meaning o he ac o s, in spi e o u he oblique o a ions o he ac o sco es. This was pe haps because he esponden s a his es -s age we e no much mo e nume ous han he cons uc s; o because o subs an i e a ia ions in alue-pa e ns be ween sec o s o o ganiza ions. Fo his eason, educ ion in he numbe o alue a iables by ac o analysis was pos poned o a la e s age when a g ea e sample si7.C migh e eal ac o s wi h mo e meaning com- mon o all p o essions. Howe e , so as no o exhaus he pa ience o he esponden s, he hi y alue i ems wi h he highes loadings we e chosen, and each p esen ed as a six- poin Like scale, including a ze o o allow o unce ain y o esponse. These wo scales hen cons i u ed he i s ques ionnai e. A simila conse a i e p ocedu e was applied o i ems o he hi d o he h ee scales ega ding he image o he i ms as pe cei ed by pa ne s, clien s and o he s akeholde s o he p o essional o ganiza ions. O he 62 cons uc s gene- a ed h ough he Kelly epe o y g id echnique, he 38 con- s uc s wi h he highes coun we e e ained. They appea ed o be ca ego ized in o ou a eas, namely gene al image o he i ms, leade ship, ma ke ing, and cha ac e is ics o he pa ne s. A seman ic di e en ial scale was mos app op ia e o he o m o he i ems in his ques ionnai e. A lis o pa icipa ing i ms was included wi h he ins uc ions, and esponden s we e eques ed o gi e hei pe cep ions o hei ideal i m, as well as hei pe cep ions o hei own i m and compe i o i ms (in he case o he p o essional i ms) and o hei consul an i m (in he case o clien s). In his way a pe cep ion o each i m by i sel , by i s compe i o s, and by i s clien s, as well as he ideal o each p o ession would be gene a ed. Da a analysis Once he design and es ing had been comple ed, he ques- ionnai es we e sen o he pa ne s and clien s o 56 p o essional o ganiza ions. Responses we e ecei ed o m 432 pa ne s and 225 clien s and s akeholde s. A ew i ms which had aken pa in he ques ionnai e's de elopmen phase wi hd ew om he es o he esea ch p ocess, so ha 48 o he 96 i ms we e inally included in he analysis. The in e nal consis ency o he i ems in he h ee scales was es ed wi h co espondence analysis (G eenac e, 1984). This indica ed ha he PEU scale and image scale i ems we e in e nally consis en , bu ha he e we e six a iables in he alue se which we e ou lie s and which could be e- mo ed. In addi ion, in he case o he image ques ionnai e, S.-A . Tydsk .Bed y sl.1993,24(4) K uskal-Wallis' es o he sco es ep esen ing sel -image and clien -image showed ha he e we e signi ican di e - ences ( p < 0.01) on only wo o he 38 a iables, so ha hese wo da a se s could be me ged. Empl lcal esuhs Wi h he la ge samples in hand, ac o analysis wi h o a ion was applied o each o he h ee se s o i ems o iden i y he unde lying s uc u es. In deciding how many ac o s o e ain, Youngman ( 1979) has speci ied ha load- ings by a leas h ee a iables, wi h a co ela ion coe icien o app oxima ely 0.5 o mo e o o hogonal o a ions, a e necessa y o a ac o o be included. Loadings be ween ap- p oxima ely 0.3 and 0.5 we e also conside ed whe e hese assis ed in he in e p e a ion o he ac o . Pa ne ques ionnai e Pe cep ions o en i onmen al unce ain y The p incipal componen me hod o ac o analysis wi h a a imax o hogonal o a ion p oduced a h ee- ac o solu ion using 11 i ems o he 12-i em PEU scale, and accoun ing o 59% o he a iance. A possible ou h ac o was ejec ed due o he low numbe o a iables loading on o his ac o , and one may he e o e ake he o iginal scaling as alida ed. In Table 1 he loadings ha esul ed a e shown, and inspec ion o he con ibu ing a iables sugges ed he co esponding ac o desc ip ions. Values The same ac o analysis p ocedu e was pe o med on he 26 alue a iables which emained a e emo al o he ou - lie s. An eigh - ac o solu ion accoun ed o 76% o he o al a iance. Howe e , a sc ee es indica ed ha only wo Table 1 Fac o loadings o h ee ac o s o pe cep ions o en i onmen al unce ain y Fac o 1 Known ac o s, including known compe i ion Va iable no. Desc ip ion Loading P4 Technology 0.82 PS Compe i ion om p o essional i ms 0.85 P7 Na u e o compe i ion 0.70 Fac o 2 Unknown compe i ion Va iable no. Desc ip ion Loading P6 Compe i ion om non-p o essional i ms 0.67 PS Supply o s a 0.1S P9 Quali y o s a 0.80 Pll Demand o new se ices 0.35 Fac o 3 Poli ic-economic isk Va iable no. Desc ip ion Loading Pl Socio-poli ical ac on 0.81 P2 Go e nmen egula ions 0.71 P3 Economic ac on 0.76 Pl2 Risk 0.63 S.A J.Bus.Mgm .1993,24(4) majo ac o s appea ed o be esponsible o 43% o he a iance. A comp omise was achie ed using Youngman's (1979) c i e ion, deli e ing in e p e able meaning wi hou ui ial de ail; and he inal numbe o ac o s selec ed was i e (see Table 2). These i e ac o s p o ed o be con i med by a ac o ana- lysis on he sco es o 24 o he o iginal 32 a iables which con ibu ed o hese ac o s o each p o essional o gani- za ion. Image A simila ac o analysis on he me ged image da a, in e - p e ed wi h Youngman's c i e ion, would ha e yielded se en ac o s. Howe e , 36 o he 38 a iables in he scale had loadings o mo e han 0.5 and would he e o e ha e Table 2 Fac o loadings o i e ac o s o alues Fac o 1 Va iable no. s V6 s Vl4 V'22 V24 V29 V30 V32 Fac o 2 Va iable no. Vl Vl6 V23 V28 Fac o 3 Va iable no. V2 V3 VlO Fac o 4 Va iable no. V4 VIS V23 Fac o 5 Va iable no. V9 12 VIS V20 Se ice o ien a ion Desc ip ion compe en compassiona e co-ope a i e imagina i e nice people sel -disciplined suppo i e ole an unsel ish S eng h and s abili y Desc ip ion ad en u ous b oad in e es s posi i e/op imis ic s able home li e s ong pe sonali y C edibili y Desc ip ion ambi ious academic expe ienced Leade ship Desc ip ion b oad ision leade ship quali ies posi i e In e pe sonal skills Desc ip ion cou eous good judgemen in e pe sonal skills me hodical Loading o.ss 0.36 0.81 0.79 0.80 0.61 0.73 0.62 0.79 Loading --0.50 --0.SS --0.52 --0.74 --0.65 Loading 0.33 0.90 0.45 Loading --0.77 --0.78 --0.34 Loading 0.77 0.51 0.52 0.64 113 been included in his se en- ac o solu ion, de ea ing he aim o educing he numbe o a iables. A mo e s ingen equi emen was he e o e se o ac o loadings highe han 0.6, which le 22 scale i ems. This si ing p ocedu e was equi alen o scale cons uc ion. A ac o analysis o hese 22 scale i ems, again using he Youngman c i e ion, sugges ed ha he e we e ou ac o s which summa iud he unde lying 22 a iables meaning ul- ly. These a e desc ibed in Table 3, wi h he ac o labels sugges ed by he con ibu ing a iables. An inJeg a ed con igu a ion comp ising p o essional o galli- za ion, s a egy, and he pe cep ions and alues o he op managemen eam The ac o sco es o each esponden om he h ee ana- lyzes comp ised he educed da a se Based on he app oach sugges ed by Ha igan (1985), a clus e analysis o he wel e- ac o sco es was pe o med, wi h a ious possible clus e solu ions being examined, om ou clus e s o se en. I was emp ing o choose a ou -pa axonomy as Table 3 Fac o loadings o ou image ac o s Fac o 1 Quali y se ice Va iable no. Desc ip ion Loading 116 good leade ship 0.69 121 good connec ions wilh c1icn l 0.74 129 good se ice 0.80 132 dep h o expenise 0.83 133 echnical knowledge 0.86 Fac o 2 B oad, mul i-specialis Va iable no. Desc ip ion Loadina 117 au oc a ic leade ship 0.52 130 many specialis se ices 0.80 134 high mo ale 0.85 15 elhical 0.62 125 wide ange o se ices 0.76 19 speci ic language/cul u al idedi y o.so 16 s able 0.89 112 uni o m iden i y 0.73 Fac o 3 Repu able p o essionals Va iable no. Desc ip ion Loading 17 g owing 0.64 14 good epu a ioo 0.1S 124 agg essi e ma ke e s 0.34 123 in ol ed in he p o essions 0.80 138 well-known s a s 0.72 Fac o 4 Inno a i e specialis s Va iable no. Desc ip ia Loadina 13 imo a i e 0.81 114 p og essi e 0.45 128 s oog in ce ain ma ke s o.so 115 specialis s 0.46 114 S.-A .Tydsk .Bedly sl.1993,24(4) Table 4 PEU, alue, and image ac o sco es, and means, o he i e-clus e solu ion Fac o G oup 1 G oup 2 G oup 3 G oup 4 G oups Pe cep ions o en i onmen al unce ain y Known ac o s -1.07 0.21 -0.02 1.33 0.17 Compe i ion -0.65 0.26 0.06 0.66 -0.SS Poli ico-econ. ac o s -0.82 0.37 -0.32 0.21 -1.70 MeOII ..(),30 0.28 ..().()9 0.73 ..(),61) Values Se ice o ien a ion -0.14 0.00 0.07 1.18 -1.22 ln e penonal skills 0.61 -0.93 o.so -0.lS -0.04 Leade ship -1.06 0.07 0.17 0.60 o.so C~ibili y -O.S6 0.38 0.17 -0.4S -O.S4 S eng h 0.4S 0.20 0.16 -0.10 -2.24 MeOII ..().14 ..(),06 0.21 0.22 ..().71 Im•aes Se ice quali y -0.14 0.42 0.23 -2.28 -0.0S Mul i-speciali y 0.04 0.41 -0.04 -0.90 -0.39 Repu able -0.27 -0.64 0.76 0.18 -0.80 Jmo a i e -0.19 MeOII ..(),14 sugges ed by he heo y. Howe e , inspec ion o he s ep- wise g ouping o he i ms, o he dec easing numbe o clus e s p o ided by he s a is ical echnique, indica ed a coun e -in ui i e ea angemen o i ms i one d opped below i e clus e s. A i e-clus e solu ion was he e o e adop ed as easonably close o wha he heo y had o o e , ye p o iding he mos sa is ac o y i wi h he da a. This i e-clus e solu ion, based on he h ee PEU, i e alue and ou image ac o s, was aken as he ounda ion o he in eg a ed ypology. The wel e ac o sco es unde each ype a e illus a ed in Table 4. A h ee-dimensional plo o he means o hese ac o sco es is p esen ed in Figu e 3 in o de o acili a e he discussion below. This plo , ead in conjunc ion wi h he ac o sco es o each ype, sugges ed summa y labels o each o he i e ypes; sen ien , capable, epu able, une en and amo phous, espec i ely. Shown in Figu e 4 a e he i e g oups supe posed on he ou -cell heo e ical model o Figu e 1. Discussion By in e p e ing he ela i e mean ac o sco es o he ypes, he ollowing o e all desc ip ions we e achie ed o each g oup and i s membe ship. G oup 1 : Sen ien This g oup consis s o h ee o ganiza ions om he medical p o ession, h ee om he legal p o ession and one each om he a chi ec u al and accoun ing p o essions. One sees ha hei pe cep ion o he en i onmen as unce ain a e limi ed o poli ico-economic ac o s; unce ain y is low on known ac o s and on compe i ion. They a e com o able wi h hei compe i i e en i onmen 0.41 0.15 -0.28 0.17 IMAGE 0.17 0.00 ~-' ~- ~.51 0.30 -0.0S ..(),68 ..().32 3 ------------- 2 --- .. ---------- - -- ------ ------ ------ --1---. -------------------- ---------------- )-.,j 4 ,--,--+--- -H --..[7"'"-- ----"'70.22 ~-----,,L--~L+-7''---7': -""7'1F----- ---7-<:..o.01 ~-~---."----,''---'J"-+--- -- ---- --7-:..0.14 VALUES ~.&«L _ _L.._-L,_ _ _,e___,:_____.'-----'---:-:-" n ~ -M -~ -M PERCEPTIONS o ENVIRONMENTAL UNCERTAINTY Figu e 3 Means o PEU, alue and image ac o sco es o he i e-clus e solu ion Thei alues e lec he impo ance o in e pe sonal skills and s eng h. Tha hese o ganiza ions do no exhibi any pa icula ly s ongly de ined image can be in e p e ed o mean ha hey ha e low s a egic choice. They a e no di - e en ia ed, and can he e o e be posi ioned in he ou h quad an o he heo e ical model. H ebiniak & Joyce (1985) ha e desc ibed his posi ion as a ela i ely placid si ua ion whe e o ganiza ions ha e no cohe en s a egy, likening hei s a egies o 'muddling h ough'. They u he sugges ha hese o ganiza ions could ha e an a ay o in e nal compe encies and s eng hs which a e inapp op ia e o ex e nal oppo uni ies and condi ions. They ep esen he eac o s o he Miles & Snow (1978) ypology. S.A J.Bus.Mgm .1993,24(4) s I a I H e / g IJ i h C 0 p L i 0 0 .. n $ En i onmen ol De e mina ion HI g h Low Quad an .....,2,........__~Q-uad an 3 G oup 3 Repu able La ge, mul - 1gh 1,1 , 1p«lol/1I lnno 10lo , G oup 2 Copobl• Quad an 1 G oup 4 Une en Quad an 4 G oup 1 S.n len G oup 5 ..._ ___ .....1,---JAmo phoua Figu e 4 Fi e-g oup classi ica ion o p o essional se ice o gani- za ions compa ed o he H ebinial & Joyce (1985) ypology G oup 2: Capable O ganiza ions in his g oup a e uni o mly capable, mul i- specialis , di e si ied and inno a i e. They ha e a ai ly high pe cep ion o unce ain y o all en i onmen al aclO s. They espouse he alue o c edibili y, and a e ai ly high on all image ac o s, pa icula ly se ice quali y, mul i-special- iza ion and inno a ion, ela i e o hose in o he g oups. The g oup includes i e a chi ec u al, wo quan i y su - eying, wo enginee ing, one accoun ing, wo legal, and wo medical o ganiza ions. Since hese o ganiza ions exhibi a high pe cep ion o unce ain y o all he en i onmen al ac o s, i appea s ha he e is a high deg ee o en i on- men al de e mina ion. Howe e , he clea ly de ined and mixed s a egic choices mani es ed in he s ong image p~ ile indica e high s a egic choice by he op managemen eam. O ganiza ions in his g oup alue c edibili y, bu hey do no ega d in e pe sonal skills as impo an as do he o he g oups. Acco ding o H ebiniak & Joyce (1985), o ganiza ions in his quad an , in con as o hose in he ou h quad an , ope a e in u bulen condi ions. Al hough ce ain en i on- men al cons ain s, such as high egula ion in enns o legal cons ain s o ways o conduc ing business, may se e ely a - ec o ganiza ional adap a ion unde hese condi ions, s a egic choice emains high due o he abili y o hese o ganiza ions o choose single o mul iple ma ke niches, o en h ough ex ensi e ad e ising, lobbying and ma ke ing ac i i y. Nine ou o he ou een o ganiza ions in his g oup a e om he building and cons uc ion indus y, mo e han he p opo ion om his indus y in he o e all sample. I may be ha ea u es o his indus y a e ope a ing as a de e - minan , and o he o ganiza ions in he g oup exhibi some o he cha ac e is ics o his indus y. G oup 3: Repu able G oup 3 consis s o se en accoun ing, i e legal and i e enginee ing o ganiza ions. Since hei pe cep ions o en- i onmen al unce ain y a e ai ly neu al o nega i e, hey expe ience sligh ly low en i onmen al de e mina ion. They 11.5 exhibi a s ong image o being epu able, bu do no ha e ?'11e s~ngly de ined image a ibu es. Thei o e all image as h~ highes o all he g oups, which is in e p e ed as meaning ha hey exhibi he highes s a egic choice. Mos o ~ p o ~sional o ganiza ions in he sample, 18 o 48, ell . in o has g oup, indica ing ha eliance on hei p o- essional epu a ion emains he dominan choice o hese o ganiza ions. G oup 4: Une en The. o ganiza ions in G oup 4 ha e he highes pe cep ion o en ~nmen al. unce ain y, and a e cha ac e ized by ha ing an amage o inno a ion which is suppo ed by he highes amoun o di e si ied se ices. Bu hey a e he leas b oadly based, which in all e lec s a ocused s a egy in Po e 's (1980) sense. ~ al_ues o~ his g oup o o ganiza ions e lec a s ong ~ace onen auon and leade ship. Because o hei high en- a onmen al de e mina ion, o e all low s a egic choice and image o inno a ion, his g oup could be placed in he i s quad an - hose ep esen ing he de ende s o he Miles & Snow (1978) ypology. The g oup consis s o h ee o gani- za ions om he a chi ec u al p o ession, which is no su p ising in e ms o he image o inno a ion, and one om he medical p o ession. The cha ac e is ics o his quad an include small o gani- za ions in impe ec ly compe i i e niches, wi h limi ed man- age ial choice, al hough indi iduals may a emp o exe cise op ions which mi iga e agains en i onmen al demands, and echnological inno a ions may al e hei abili y o compe e and a ec hei compe i i e ad an age (H ebiniak & Joyce, 1985). The image o inno a ion exhibi ed by his g oup o o ganiza ions may e lec hei a emp a changing hei domain, o i may be he consequence o he ac ha h ee o he ou o ganiza ions a e om he a chi ec u al p o es- sion, wi h highly inno a i e alues. G oup 5: Amo phous The ou o ganiza ions in G oup 5 ha e he lowes pe - cep ion o en i onmen al unce ain y and no clea ly de ined sua egic choice which may be iden i ied in i s image, excep ha hey a e pe cei ed o be less epu able and less b oadly based han hose in o he g oups. The alue o leade ship is ega ded as impo an . These o ganiza ions can hus be ca e- go ized as belonging o he ou h quad an o he heo e ical model which ep esen s low s a egic choice and low en- i onmen al de e mina ion as a icula ed in he pe cep ions o en i onmen al unce ain y by he membe s o he op managemen eam. The e is a simila i y be ween he o gani- za ions in his g oup and o ganiza ions in he i s g oup, excep o he di e ences in hei pe cep ions o he un- ce ain y o he poli ico-economic ac o and hei alue p o ile. Two o he i ms in his g oup we e om he medic- al p o ession and wo om he enginee ing p o ession. Concluslon In summa y, he empi ical enqui y ound i e b oad con- igu a ions, h ee o which could be associa ed wi h h ee o he ou quad an s o he heo e ical ypology o H ebiniak & Joyce (1985), de ined by en i onmen al de e mina ion 116 and s a egic choice. A ounh con igu a ion o e lapped wo o he quad an s; and a i h mo ed abo e a pa icula quad- an in o a hi d dimension, ha o he collec i e alues o he op managemen eam o he p o essional o ganiza ions. I appea s ha o a la ge numbe o p o essional o gani- za ions, one o he s a egic bases om which o ope a e is hei p o essional epu a ion, pa icula ly in he comme cial indus y, and in he unce ain Sou h A ican en i onmen whe e clien s look o hei p o essional consul an s o help educe hei isk and unce ain y. Con ained among he mo e inno a i e o ganiza ions in he capable g oup (wi h high s a egic choice), and he un- e en g oup (wi h low s a egic choice), we e eigh o he nine o ganiza ions om he a chi ec u al p o ession. This inding is in e es ing in iew o he 'a an -ga de' na u e o his p o ession. I is also no ewo hy ha mos o he o ganiza ions in he medical p o ession ope a e om a posi ion o low s a egic choice. This is p obably a e lec ion o he in luence o com- me cial conside a ions o e adiology and pa hology specializa ions, which equen ly unc ion wi hin p i a e hospi al g oups, and unde a mo e es ablished ee s uc u e. No g oup was posi ioned in he hi d quad an o he heo e ical model, whe e maximum choice and low en i on- men al de e mina ion occu , esou ces a e lacking, en y and exi ba ie s a e low, and o ganiza ions may de ine and en- ac hei own en i onmen s. Howe e , i was poin ed ou ha o ganiza ions in G oup 3 exhibi ed some a ibu es o his quad an I is likely ha some o he o ganiza ions con ained wi hin his clus e ha e poised hemsel es o ake ad an age o his posi ion, bu a e s ill oo cons ained by such en i onmen al de e minan s as egula ion, lack o e- sou ces, and lack o au onomy and con ol o e o he s in he en i onmen , o ully exploi he ad an ages which his posi ion o e s. I may also be ha comme cial compe i o s ( he p o essional o ganiza ions in his sample), o ha e an ad an age in his espec , would be ound o occupy his quad an This esea ch has shown ha many o he heo e ical p o- posi ions ega ding s a egy, o ganiza ional adap a ion and he e ec o he op managemen eam, which had been sug- ges ed o indus ial o ganiza ions, a e likely o be ue o p o essional o ganiza ions. In pa icula , he ypologies o Po e (1980), Miles & Snow (1978), H ebiniak & Joyce (1985), and he models o Child (1972) and Hamb ick & Mason (1984) discussed a he ou se , ha e p o ed o be en- ligh ening in a emp ing o a i e a a che ypes o p o es- sional se ice o ganiza ions, p o ided ha hey a e sui ably e ined on he basis o empi ical e idence o he p o ile o op managemen eams in he ace o Sou h A ican en i on- men al ci cums ances. Re e ences Abell, D.F. 1980. De ming he business: The s a ing poin o s a egic planning. Englewood Cli s: P en ice Hall. And ews, K. 1971. The concep o co po a e s a egy. New Yo k: Dow Jones, I win. Bennion, F.A.R. 1969. P o essional e hics. London: Cha les Knigh . S.-A .Tydsk .Bed y sl.1993,24(4) Bou geois, LB. & Singh. J. 1983. 'O ganiza ional slack and poli ical beha iou wi hin op managemen eams', Academy o Manageml!n P oceedings, pp.43-47. Child, J. 1972. 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