Date of Award

Spring 5-1-2015

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Department

College of Technology

Abstract

This study sought to determine if and to what extent strategy integration was related to the financial indicators profit margin ratio and inventory turnover for publically traded manufacturing organizations in Oklahoma. Current strategy theory states that the more thoroughly an organization adopts a given strategy the greater the effect will be on these financial indicators. Hence the need to more fully understand the extent and rates at which strategy integration effects these indicators. This study looked at perceived strategy integration scores for publically traded Oklahoma manufacturing organizations taken from June to August 2014 and financial indicators from 2012 and 2013. The perceived strategy integration scores were obtained via survey while the financial indicators were calculated using Section 10-K filings from the United States Securities and Exchange Commission (US SEC or SEC). Reliable financial information is not publically available for many private organizations, so, they were excluded from the study. Summary analysis of the data indicated that strategies were not in use in equal proportions with Niche Differentiation being most popular by far. Market focus appeared to be an indicator of inventory turnover standard deviation with Broad focus and Combination strategy groups having lower standard deviation. While the product focus appeared to indicate profit margin ratio range with Low Cost strategies having lower profit margins. After performing additional analysis it was found that performance enhancing technologies and other complicating factors may have had a larger impact than previously believed. A correlation was unable to be iii established for most strategies. For the Niche Low Cost Strategy a relationship was found where profit margins decreased 1.634% for each 1 point increase in perceived strategy integration score. It was also found that the Broad Differentiation Strategy it was found that inventory turns increased 0.7006 turns for every 1 point increase in perceived strategy integration score. No other strategies were found to have correlation coefficients that were statistically different from the null hypothesis. However, anecdotal evidence was found in support of several other of Porter’s theories.

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