MGMT20144: Impact of Contextual Factors on Organizational Performance

This annotated bibliography analyzes the importance of various contextual factors in organizational decision-making and their impact on firm performance. It examines journal articles focusing on organizational structure, environmental forces, risks confronting firms, organization and business practices, and functions of diverse firms. Key findings include the significance of organizational structure in improving communication and productivity, the effect of macro environmental forces on firm strategy, the use of business model canvases for risk management, the role of employee engagement in organizational performance, and the impact of diverse functions on overall productivity. The analysis concludes that understanding and managing these contextual factors is crucial for managers to enhance organizational effectiveness and achieve strategic goals.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Table of Contents
Introduction................................................................................................................................3
Journal Article on Organizational Structure..............................................................................3
Contextual Factor...................................................................................................................3
Findings..................................................................................................................................4
Meaning of Findings for Managers........................................................................................4
Journal Article on Environmental Forces..................................................................................4
Contextual Factor...................................................................................................................5
Findings..................................................................................................................................5
Meaning of Findings for Managers........................................................................................5
Journal Article on Risks Confronting the firm...........................................................................5
Contextual Factor...................................................................................................................6
Findings..................................................................................................................................6
Meaning of Findings for Managers........................................................................................6
Journal Article on Organization and Business Practices............................................................6
Contextual Factor...................................................................................................................7
Findings..................................................................................................................................7
Meaning of Findings for Managers........................................................................................7
Journal Article on Functions of Diverse Firms..........................................................................7
Contextual Factor...................................................................................................................8
Findings..................................................................................................................................8
Meaning of Findings for Managers........................................................................................8

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Conclusion..................................................................................................................................8
References................................................................................................................................10

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Introduction
The report helps in the entire analysis of the importance of the different contextual
factors which are helpful and essential in nature to create a positive impact on the overall
profitability of the organization effectively.
The different kinds of contextual factors help in analysing the usefulness of the
collaboration in different organizations and this helps in improving the overall condition of
the market in an effective manner. The conditions of the firms are required to be improved
which will help in managing risks effectively and this will provide benefits to the customers
effectually.
The contextual factors furthermore help in preparation of the competitive business
model canvas which will help and assist in reducing the different risks in an effective manner
as well. Furthermore, the process of decision-making helps the organizations in
understanding the usage of the various contextual factors which will be effective in nature to
be more competitive in nature.
Journal Article on Organizational Structure
Bergh, D.D., Aguinis, H., Heavey, C., Ketchen, D.J., Boyd, B.K., Su, P., Lau, C.L. & Joo, H.,
(2016). Using meta‐analytic structural equation modeling to advance strategic management
research: Guidelines and an empirical illustration via the strategic leadership‐performance
relationship. Strategic Management Journal, 37(3), pp.477-497. (DOI- 10.1002/smj.2338)
Contextual Factor
The factor which have been conversed is relating to the organizational structure which
is indispensable in the organizations. Furthermore, the organizational structure such as
partnership and the other structures of the organization help in managing the leadership

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performance relationships effectively. Furthermore, this is one of the essential component of
the strategic management in which this will improve the functions which are being
undertaken by the companies in an appropriate manner. The performance management is
required to be done by the company which will help in reducing the barriers of
communication and this will help in reducing the negative productivity.
Findings
The new discoveries in the contextual factor is relating to the structure of the
organization which is required to be effective in nature. The organizational structure is
effective and this is important which includes improvement in the communication and this
increases the overall productivity of the organization in an efficient manner.
Meaning of Findings for Managers
The findings which have been generated from the article helps the managers in the
organizations in using and following the respective structure of the organization. This kind of
structure helps the organization and the employees in managing the different tasks which are
required to be performed by them. Furthermore, this has been seen that the partnership
structure of the organization will include the different kinds of factors such as sharing of
profitability is required to be managed which will help in improving the communication
process in an efficient manner.
Journal Article on Environmental Forces
Foss, N. J., & Pedersen, T. (2016). Micro foundations in strategy research. Strategic
Management Journal, 37(13), E22-E34. (https://doi.org/10.1002/smj.2362)

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Contextual Factor
The factor which have been ascertained in the respective article is related to the
different environmental forces that can affect the firms in both positive or undesirable
manner. The macro environmental forces such as macro analysis for instance PESTEL
analysis can help the organizations in identifying the dissimilar kinds of issues which can be
faced by them along with analyzing the solutions effectively that can reduce the issues in a
positive manner.
Findings
The new discoveries in the contextual factors is related to the macro environmental
approaches which can be faced by the establishments and their effects on the strategy of the
firm in a positive or negative manner. The contextual factors help in the decision-making
process of the organization in which the different kinds of issues such as environmental
forces on the effectiveness of organization can be examined which will provide suitable
solutions to reduce and resolve the same effectively.
Meaning of Findings for Managers
The meaning of the different findings for the different managers in the organizations
is that they are the ones who are responsible to analyses and identifies the effect on the
productivity of the firm. The managers in the organizations have to be cautious relating to the
utilization of resources in the organizations which will reduce the different kinds of
environmental issues or the external environmental issues in the organization.
Journal Article on Risks Confronting the firm
Brustbauer, J. (2016). Enterprise risk management in SMEs: Towards a structural
model. International Small Business Journal, 34(1), 70-85.
(doi/abs/10.1177/0266242614542853)

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Contextual Factor
It is related to the different kinds of risks which can be confronted by the firms. There
are different internal and external types of risks which can be faced by the companies and this
can create huge pressure on gaining huge productivity of the organization in an effective
manner. There are different kinds of enterprise risk management in the firms in which this
can cause huge pressure as this can affect the firms in a negative manner.
Findings
It is relating to the different kinds of approaches which can be adopted by the firms as
to reduce the different issues in an effective manner. the risk can be managed by the firms
and the managers by using the business model canvas as this will help in managing the key
resources and customers in a positive manner. The business model canvas is essential in
nature which will help in motivating the different individuals in the organizations to reduce
such risks effectively.
Meaning of Findings for Managers
The meaning of the various findings for the managers in the organizations is relating
to finding solutions for reducing the different risks which are confronted by the organizations.
This can be seen that the organizations have to undertake the convenient business model
canvas which will assist in reducing the issues and risks effectively.
Journal Article on Organization and Business Practices
Barrick, M. R., Thurgood, G. R., Smith, T. A., & Courtright, S. H. (2015). Collective
organizational engagement: Linking motivational antecedents, strategic implementation, and
firm performance. Academy of Management journal, 58(1), 111-135.
(doi/10.5465/amj.2013.0227)

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Contextual Factor
It is related to the to the organization and business practices. There are different
business practices which is required to be performed by the managers as to motivate the
employees in the organizations and solve their grievances in an efficient manner.
Furthermore, the main contextual factor is to include the employee engagement
among employees which will improve working conditions in companies. The motivation
approaches such as financial incentives along with non-financial approaches can be adopted
by the individuals which will be effective to improve the condition
Findings
It is related to the different kinds of organizational practices such as motivational
approaches and the employee and organizational engagement. The contextual factors are
required to improve the decision-making approaches in the organization which will help in
reducing the different challenges such as improve the productivity of the organization by
implementing different strategies in an effective manner.
Meaning of Findings for Managers
The meaning of the different findings for the managers in the organization is related
to the different kinds of organizational performances which are essential in nature to be
implemented as this will improve the performance and gain huge profitability as well.
Furthermore, motivational approaches such as financial and non-financial awards are
required to be adopted by the organizations which will be effective in nature.
Journal Article on Functions of Diverse Firms
Jarzabkowski, P., & Kaplan, S. (2015). Strategy tools‐in‐use: A framework for understanding
“technologies of rationality” in practice. Strategic Management Journal, 36(4), 537-558.
(DOI- 10.1002/smj.2270)

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Contextual Factor
The main contextual factor which has been discussed in the article is relating to the
functions of the diverse firms. There are different kinds of human resource, finance and
marketing functions in the organizations which are required to be performed in an efficient
manner. The HRM functions include the different compliances of the employees are being
managed by the employees which will be effective in nature.
Findings
It is related to the functions and their role in the different companies. This has been
seen and analyzed that the firms need to understand and analyze the different kinds of
functions such as HRM functions deal with performance of the employees, providing the
compliance and salary related tasks. On the other hand, the marketing department is
regarding the various types of the functions such as advertising of the products and services
of the company which will make the tasks of the company more effective and efficient in
nature.
Meaning of Findings for Managers
It is relating to the different kinds of functions of the diverse teams and the impact of
the same on the overall productivity of the organization effectively. This has been seen that
the managers need to divide the tasks between the different departments who are specialized
in nature and this will help the company to become more effective and appropriate in the
tasks which are being performed by them and gain more productivity effectively as well.
Conclusion
Therefore, this can be concluded that these five articles have helped in gaining huge
knowledge on the different kinds of macro and micro environmental forces in an efficient
manner. Furthermore, there are different kinds of findings which have been generated in the

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five articles which were connecting to the purposes of the diverse firms along with the effect
of the same on the structural productivity.
It has been observed that there are different kinds of environmental forces along with
the structure of the firms which can create huge essence and effect on the productivity of the
firm in a positive or negative manner. The new findings for the managers along with main
contextual factor have been discussed in the different articles which has helped in managing
the differences by resolving the same with different kinds of strategies effectively.
Furthermore, the organizational structure played a major role in the organizational
productivity in which this was seen that the different HRM functions are mandatory to be
followed and this improves the complete efficacy and correctness of the different companies.
The diverse dangers which are being confronted by the different organizations have been
analyzed.

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References
Ahearne, M., Jelinek, R., Mathieu, J., Rapp, A., & Schillewaert, N. (2015). A Longitudinal
examination of individual, organizational and contextual factors on technology
adoption and job performance. In Creating and Delivering Value in Marketing (pp.
171-171). Springer, Cham.
Barrick, M. R., Thurgood, G. R., Smith, T. A., & Courtright, S. H. (2015). Collective
organizational engagement: Linking motivational antecedents, strategic
implementation, and firm performance. Academy of Management journal, 58(1), 111-
135.
Bergh, D.D., Aguinis, H., Heavey, C., Ketchen, D.J., Boyd, B.K., Su, P., Lau, C.L. & Joo, H.,
(2016). Using meta?analytic structural equation modeling to advance strategic
management research: Guidelines and an empirical illustration via the strategic
leadership?performance relationship. Strategic Management Journal, 37(3), pp.477-
497.
Brustbauer, J. (2016). Enterprise risk management in SMEs: Towards a structural model.
International Small Business Journal, 34(1), 70-85.
Englund, C., Olofsson, A. D., & Price, L. (2018). Teaching in higher education: contextual
factors as facilitators of conceptual change and development in practice.
Foss, N. J., & Pedersen, T. (2016). Micro foundations in strategy research. Strategic
Management Journal, 37(13), E22-E34.
Jarzabkowski, P., & Kaplan, S. (2015). Strategy tools?in?use: A framework for
understanding “technologies of rationality” in practice. Strategic Management
Journal, 36(4), 537-558.

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Oc, B. (2018). Contextual leadership: a systematic review of how contextual factors shape
leadership and its outcomes. The Leadership Quarterly, 29(1), 218-235.