Factors Influencing Business Strategy Implementation: A Review

This report presents a comprehensive literature review on the factors that influence business strategy implementation. It delves into both external factors, such as government regulations, economic conditions, social trends, and legal barriers, and internal factors, including organizational culture, communication, leadership, and management involvement. The review synthesizes findings from various empirical studies, highlighting the impact of external factors on strategy success, such as how changing government rules can hinder implementation and how economic conditions influence investment strategies. It also examines internal elements, emphasizing the role of organizational structure and leadership in facilitating effective strategy execution. The report concludes by underscoring the importance of contingency strategies and stakeholder relationships for successful business implementation, providing a conceptual framework and key insights for businesses aiming to optimize their strategic outcomes. The report is contributed by a student and published on Desklib, a platform offering AI-powered study tools.

Running head: INTEGRATED CAPSTONE STRATEGY
Factors Influencing Business Implementation
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Abstract
Business strategy implementation is the process, which turns business strategies and plans into
action for accomplishing strategic objectives and goals. However, there are several factors,
which have huge impact on the business strategy implementation of an organization. This
literature review has focused on the important factors affecting the business strategy
implementation of an organization. The literature review has defined the key terms of the
business implementation. Furthermore, the literature review has been divided into several themes
for gathering huge research information about the factors affecting the business implementation.
The literature review has accessed information about both external and internal factors affecting
the business implementation. From the empirical researches, it has been found that changing
government rules and regulation can hamper the success of strategy implementation of an
organization. On the other hand, the economic condition of a country determines the return of
investment of an organization. Therefore, it can impact on investment strategy of an
organization. Furthermore, various legal barriers and customer changing demand impact the
strategy implementation of an organization. The literature review has also explained the internal
factors affecting the business in terms of organization culture, leadership and many others.
Key Words: Business strategy, business strategy implementation, external business factors,
international business factors

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Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Concept of Business Strategy Implementation..........................................................................4
3.0 External Factors Affecting Business Implementation...............................................................5
4.0 Internal Factors Affecting Business Implementation................................................................7
5.0 Contingency Strategies for Successful Strategy Implementation..............................................8
6.0 Conceptual Framework..............................................................................................................9
7.0 Conclusion...............................................................................................................................10
References......................................................................................................................................11
Appendix 1. Tabulation of Online Database Search.....................................................................11
Appendix 2. Summary Table for Research Literature included in Review...................................12

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1.0 Introduction
The rise in innovation has led to a tremendous competition among firms to diversify its
products and at the same time manage its resources. Such resource management and continuous
development is done by identifying the factors that influences strategy implementation (Alkaabi
& Dixon, 2014). Such factors are commonly grouped in terms of external and internal factors.
External factors comprise of politics, economics, society, technology, legality and environment.
On the other hand, internal factors comprise of investors, shareholders, employees, customers,
suppliers, directors and even the CEO. The implementation of strategy is dependent on external
and internal factors and there have been various researches done earlier by different authors.
The purpose of this literature review is to identify the factors that influence strategy
implementation in a business. Beyond the external factors, there are many competitive factors
that influences business strategy, much of those are quite new in terms of technology, partnership
and promotion. While considering the rationale of choosing the research topic, it can be said that
business competitive environment has reached to a great level where the previous researches
done by authors are considered as long-standing, and therefore for strategy implementation, new
ideas are to be collected. For the literature review, the research strategy includes articles from
databases such as Google Scholar and Google Search Engine, (refer to appendix 1) from where
some articles are derived free and rest are bought online.

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Following is the flowchart for literature selection process:
Figure 1: Process Flowchart
(Source: Created by Author)
The literature review will be based on the following themes and Appendix 2 shows the
information of literatures used:
 Theme 1: External Factors Influencing Business Implementation
 Theme 2: Internal Factors Affecting Business Implementation
 Theme 3: Contingency Strategies for Successful Strategy Implementation
2.0 Concept of Business Strategy Implementation
According to Klettner et al., (2014), strategy implementation is the summation of
activities in which an organization uses the organization resources for accomplishing the

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objectives of the strategies. The success of an organization is highly dependent proper
implementation of developed organizational strategies. However, the implementation of
organizational strategies is highly impacted by various internal and external factors. On the other
hand, Lagat and Frankwick, (2017) opined that the success of organizational strategic
implementation is extremely dependent on dynamic capabilities of organization. Moreover,
organizations can better implement their developed organizational strategies through developing
contingency plan (Omri et al., 2015).
3.0 External Factors Affecting Business Implementation
Implementation of organizational strategies is highly dependent on external factors.
Moreover, such factors are completely uncontrollable and organizations need to upgrade their
dynamic capabilities for coping up with such external factors. According to Joha and Janssen,
(2014), organizational strategies are highly influenced through the governing rule and regulations
of the government. The aim of this article is to explore the factors effecting the business strategy
implementation of shared business. Moreover, changing rules of government hamper the
business practice of the organizations. Furthermore, economic rationale of the countries
determines the profit potential of an organization through enhancing the return of investment. In
this way, it determines the investment decision of the organizations. The research paper is based
on case study method, which accesses huge research information from the combination of
exploratory and explanatory case studies. However, lack of adequate case study collection can
limit the effectiveness of information in this research paper.
On the other hand, Bialowolski and Weziak-Bialowolska, (2014) opined that legal factors
are the most effecting external factor on business strategy implementation. The aim of the

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research article is to examine the influencing factors on business decision. Moreover, the
increasing tax rate of one country can enhance the overall business cost of an organization.
Therefore, it highly impact of the developed business strategies of an organization. The article
also explored that the GDP growth rate and economic condition of a country also influence the
investment decision of an organization. The research paper has used survey method through
asking survey questions at the individual organizational level of polish companies. However, the
research article has some limitations in the set of research questions, which has reduced the
reliability of the information.
Furthermore, Jankovic et al., 2016 stated that external factors define the aggregate
environment, which can have both direct and indirect impact on business strategies. The
hypothesis set in this research paper has explored the impact of external factors on the business
implementation of organizations. As per this article, changes in Government policies
immediately bring the needs of the changes in organizational policies and strategies. Apart from
that, the research paper has also explored that economic environment determines the spending
power of the customer, which can have major impact on the pricing strategy of an organization.
Furthermore, social trends and legal barriers can also have huge impact of the strategy
implementation of an organization. The research paper is based on survey method, where the
information about the research topic has been collected from asking survey questions to the
employees of 60 companies in Siberia. However, the limitation of the research paper is lack of
access to some other factors effecting business implementation.

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4.0 Internal Factors Affecting Business Implementation
Rajasekar, (2014) pointed out that internal factors build the foundation for the success of
business strategy implementation. As per this article, effective formation of business strategies
and proper communication of those strategies among the employees enhances the effectiveness
of business implementation. On the other hand, the article also highlights that organizational
culture also plays an important role for the success of business implementation. Moreover,
collaborative, learning and supporting working environment encourage the employees towards
proper accomplishment of business strategies. The research paper is based on survey method,
where the survey questions were distributed among the executives in Mazoon Electricity
Company for assessing the impact of internal factors on their business implementation. However,
the sample data might not be sufficient for drawing effective research result.
On the other hand, Mbaka and Mugambi, (2014) opined that organizational structure
plays a significant role in business implementation of an organization. The aim of the research
paper is to explore the factors effecting successful strategy implementation of organizations. This
article demonstrates that organizational structures set the level of communication and control
system of the organization for successful strategy implementation. On the other hand, the article
also explores that effective leadership is also important for controlling the employees in
successful strategy implementation of an organization. This research paper is based on
qualitative method, where information is collected mostly from literature, articles, journals,
government report and others. However, the research article has lack of access to adequate
secondary sources of data, which may hamper the quality of information.
Furthermore, Al-Kand opined that strategic thinking of the organizational managers is
extremely important for successful business implementation. The aim of this research paper is to

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assess the factors influencing the business implementation process and its outcomes. As per this
article, implementation of business strategies is highly dependent on high level of management
involvement in business strategies. Moreover, management support and level of strategic
communication leads the success of business strategy implementation. The research study is
based on survey method, survey questionnaires were distributed among middle level managers of
three Saudi banks. The information collected from the middle level managers may not be
consistent enough to give the best research result.
5.0 Contingency Strategies for Successful Strategy Implementation
According to Chuah et al., (2016), successful business implementation needs huge
support from the management team of an organization. Moreover, they should encourage the
employees towards the success the organizational strategies and lend the credibility to the
functional managers. This research paper has been conducted based on quantitative approach,
where surveu questionnaires were distribute among the middle level managers of Malaysian
External Trade Development Corporation service. However, the selection of sample may not be
accurate, as middle level managers are always not included in strategy execution. Therefore, the
information may not be accurate for reaching high quality research outcome.
On the other hand, Ranjbar et al., (2014) has highlighted on the interaction among the
intra-organizational factors for successful strategy implementation of organization. As per this
article, organizations must understand the competitive force and analyze their competitive edge
for enhancing the effective of successful strategy implementation. On the other hand, there
should be proper alignment between the business strategy and organizational culture for
successful business implementation. This research paper is based on quantitative method, where

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External Factors
Government Rules
Economic Condition
Social Trends
Legal barriers
Business Strategy Implementation
Internal Factors
Organizational Cultural
Communication
Leadership
Management Involvement
information has been collected from same expert of strategic management. However, lack of
involvement of the experts may hamper the research outcome. Furthermore, Brookes et al.,
(2014) has focused on successful implementation of business strategies. This article explores that
organizations need to maintain effective relationship with all their stakeholders for successful
strategy implementation. Effective relationship with government can help the organizations in
gaining governmental support for successful strategy implementation. This research paper is
based on content analysis method. However, limited access to adequate content may hamper the
quality of the research outcome.
6.0 Conceptual Framework
Figure 1: Conceptual Framework
(Source: Created by Author)

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7.0 Conclusion
While concluding the literature review, it can be said that both external and internal
factors affect the business implementation of an organization. From the empirical research paper,
it can be found that political satiability and changing government rule and regulations have huge
impact on the strategy implementation of an organization. On the other hand, the economic
condition of a country determines the spending power of customers, which can impact the
pricing strategies of an organization. Furthermore, social trends and changing consumer
preferences often impact on the product strategies of an organization. Some empirical research
article has focused on internal factors of an organization, which can have huge impact on the
business implementation. Moreover, the organizational culture and strategies determine the
communication and involvement level of the employees in strategy implementation. Therefore,
such factors are extremely important for successful business implementation of an organization.
Some research articles of the literature review have also demonstrated proper strategy of
business implementation.

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References
Al-Kand, I., Asutay, M., & Dixon, R. (2013). Factors Influencing the Strategy Implementation
Process and Its Outcomes: Evidence from Saudi Arabian Banks. Journal of Global
Strategic Management, 7(2), 5-15.
Bialowolski, P., & Weziak-Bialowolska, D. (2014). External factors affecting investment
decisions of companies. Economics, 8(11), 0_1.
Brookes, M., Altinay, L., & Ringham, K. (2014). Successful implementation of responsible
business practice. Worldwide Hospitality and Tourism Themes, 6(1), 77-84.
Chuah, F., Teoh, K., Ting, H., & Lau, E. (2016). A behavioral approach to modelling strategy
execution: The role of organizational support and the moderated mediation effect of
engagement and communication. International Review of Management and
Marketing, 6(8S).
Jankovic, M., Mihajlovic, M., & Cvetkovic, T. (2016). Influence Of External Factors On
Business Of Companies In Serbia. Ekonomika, 62(4), 31-37.
Joha, A., & Janssen, M. (2014). Factors influencing the shaping of shared services business
models: Balancing customization and standardization. Strategic Outsourcing: An
International Journal, 7(1), 47-65.
Klettner, A., Clarke, T., & Boersma, M. (2014). The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics, 122(1), 145-165.