ORGANIZATIONAL STRATEGY AND THE OUTCOMES OF FISCAL RETRENCHMENT IN MAJOR CITIES IN THE UNITED STATES

摘要

This study examines if organizational strategyspecifically strategy formulation and strategic stanceinfluences the outcomes of fiscal retrenchment in city governments. Fiscal retrenchment is defined here as the process of responding to a budget crisis. Analysis of data from a 2015 national survey of municipalities in the United States with a population of 50,000 or more indicates that a rational planning process is associated with fiscal recovery, whereas a defender strategy stance, which emphasizes organizational stability and efficiency, correlates with continuing fiscal difficulties. Examining the complex interactions between strategy formulation, strategic stance, and environmental turbulence, the empirical analysis indicates that a rational planning process that results in a defending stance is associated with slower fiscal recovery, but there is limited evidence that the relationship between strategy and fiscal recovery is dependent on external economic conditions.