Strategy Implementation as Social Exchange : A Processual Analysis of Multi-Level Exigencies

Well-formulated and appropriate strategies only result in superior returns for an organization when they are implemented successfully. Although a notable volume of literature has been published on the strategy implementation process, past research has neglected the role of relationship quality (leader-member exchange and team-member exchange) at the individual level of strategy implementation. We propose a contingent model based on social learning theory and examine the strategy implementation process within a retail bank. Using hierarchical linear modeling, we find that social exchange relationships embedded in a work team setting influence individual employee's strategy implementation support. Namely, the higher an employee's leader-member exchange, the stronger is the positive relationship between supervisor modeling behavior and team member strategy support. Additionally, the higher an employee's team-member exchange, the stronger the positive relationship between work team strategy support and individual strategy support.