Strategic Management Article

Influence of Leadership on Strategic Management _ A Study of
Visakhapatnam Information Technology Sector

Mythili Kolluru1
Ibra College of Technology
Abstract
This paper tries to investigate the influence of leadership on strategic with special reference to
Visakhapatnam information sector as a case study.
Keywords
Leadership, Strategic Management, Information Technology
INTRODUCTION
Technological revolutions sometimes bring unexpected opportunities for countries. India a
relative laggard among the developing countries in terms of economic growth seems to have found
such an opportunity in the information technology revolution as an increasingly favored location
for customized software development. Over the past decade, the Indian Information Technology/
Business Processing Outsourcing sector has become the countrys premier growth engine, crossing
significant milestones in terms of revenue growth, employment generation and value creation, in
addition to becoming the global brand ambassador for India.
The changing outlook demands corporations to build greater efficiencies and flexibility
within in the service delivery and business models. This brings the researcher to the strategic view
point. An understanding of strategic perspective is required for Indian Information Technology companies to sustain their growth trajectory in competitive landscape which is constantly challenged
with short product life cycle, labor shortage, price/performance rivalry, currency fluctuations, innovation based competition and the search for new markets, and to leverage their competitiveness.
This definition of leadership includes the routine acts of supervision, however the essence
of leadership is to do with that influential increment which goes beyond routine and taps bases of
power beyond those which are organizational relevance. (Ajila and Adegoke, 1998) Any organization no matter how meticulously designed cannot function without acts of leadership because
of four inescapable facets of organizational life: (1) necessary incompleteness of organizational
design; (2) changing environmental conditions; (3) internal dynamics of the organization; and
(4) dimensions of human membership in organizations (Ajila and Adekoya, 2006).
No books, procedures or policies can specify very act and prescribe for every contingency
encountered in a complex organization. Such an attempt would only produce an array of instrucDr. Mythili Kolluru is a PhD in Strategic Management, working as a lecturer at the Business
Studies Department of Ibra College of Technology under the Ministry of Man Power in the
Sultanate of Oman.
1
Strategic Management Review, 9(1), 2015
33
Mythili Kolluru
Influence of Leadership on Strategic Management
tions so ponderous that they will be completely ignored for the purpose of transacting business of
the organization.
In strategic management responsibility of corporate level decision making rests on the
strategic leaders, who are discharged from day to day responsibilities of operational activities.
(Stoney, 1998).
LITERATURE REVIEW
Chandler (1962) was among the first scholars to study strategic management. His book strategy and structure: chapters in the history of industrial enterprise described the development of organizations. Noting that structure follows strategy, (Browne, 1994), alluded to the impact that strategies
have on internal organization environment. Chandler was influential in stimulating further study.
The book, Corporate Strategy (Ansof, 1965), the influential work on Competitive strategy:
Techniques for analyzing industries and competitors (Porter, 1980), had an influential impact in
the field of strategic management. The aim of strategic management is to decide on organizational
goals, the means of achieving those goals and ensuring that the organization is sustainable in order
to pursue these goals (Browne, 1994; Porter, 1980; Robbins, 2000).
Following (Chandler, 1962), the concern has been predominantly with how a firms organizational structure and control system are or might be related to the degree and nature of its products
and geographic diversification (Fouraker and Stopford, 1968; Grinyer et al., 1980; Rumelt, 1974;
Scott, 1974; Vancil, 1980). Despite the widespread acceptance of strategys role in mediating an
organizations interaction with its environment (Andrews, 1971; Ansoff, 1965), the scope for
research on strategic management has been carried on by many, there always seems to different
dimension to this alluding and fascinating subject.
Although formulating a consistent strategy is a difficult task for any management team,
making the strategy work-implementing it throughout the organization is even more difficult task.
It is thus not surprising that after a comprehensive strategy has been formulated, significant difficulties arise during the subsequent implementation process. The best formulated strategies may fail to
produce superior performance for the firm if they are not successfully implemented. On prima facie
basis the effectiveness of strategy management is based on the leadership that drives the employees
to perform and organizational structure that provides the environment for the employees to perform.
In such a context the absence of in depth research in strategic management as whole and
the impact that leadership style has on strategic management might presents itself as a significant
research opportunity. Therefore the topic The influence of leadership on strategic management
(A study on Visakhapatnam Information Technology industry) has been selected. I further substantiate the need for research on this topic with the review of literature.
A recent work examines the phenomenon of strategic leadership of organizations and
presents a taxonomy through which it can be studied (Pauk and Sidney, 1998), The taxonomy
is developed empirically using data from 27 business cases. Four strategic leadership patterns
are identified through facet analysis using the smallest space analysis technique. Theresearch
has resulted in a pattern, that is, (a) Entrepreneurial; (b) Bureaucratic; (c) Political; and
(d) Professional.
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Mythili Kolluru
William and Robert (1990) analyze cooperation among interdependent rational individuals. The author identitys organizational features, which are crucial in determining, a leaders ability to initiative and sustain cooperation by structuring the incentives of his followers. The author
examines the role of leadership capabilities in collective dilemma. The characteristics of a leader,
for an appropriate strategy are observed.
Conger (1991), states that every corporate person understands the necessity of strategic
vision and effective leadership. The author understands the importance of leadership on strategy
and he further goes to say that there is a critical link between vision and the leaders ability to
powerfully communicate its essence. The author examines these skills and talks about the importance and what the new language skills of leadership will be. The author states that leadership can
be broken into two different into two distinct skill categories. The first is defining the purpose in a
meaningful way. This is called framing. The second is called rhetorical crafting where the leaders
ability to use symbolic language to give emotional power to the message.
John et al. (2004) have made a significant contribution by extending the understanding and
its importance of full range of leadership to strategy planning. The authors have investigated 65
technologies dependent businesses inclusive of large, medium and small. Strategy focused leadership (SFL) is a process that uses technology to connect people work and processes and opportunities in an organization to fully utilize available economic social and intellectual capital. The book
illustrates a novel qualitative and quantitative research approach to study how an executive first
envisions a strategy and then integrates the available resources to implement the strategy.
Heifetz et al. (2001) say Changes in the market, competition and customers around the
globe are forcing organizations to clarify their values, develop new strategies and learn new
ways of operating. The authors have interviewed managers world over and come with 6 principles for leading adaptive work. In short the prevailing notion that leadership consists of having
a vision and aligning people with that vision is not true because it treats adaptive situations as
technical. But leadership has to take place every day. Leadership as seen in this light requires a
learning strategy.
Hsieh (2005) say strategy will not succeed in void and leadership often makes the difference between merely reaching for great opportunities and actually realizing their potential. This
article examines the view that strategy even the best one will fail if the organization does not have
a leader with the right capabilities at the right level of the organization. The author explains that
failure to assess leadership capacity systematically before launching strategic initiatives can create
significant gaps with consequences.
The articles from journals, periodicals, magazines, management theories and internet have
demonstrated substantially that the domain of strategic management presents itself as an opportunity for research. Also the most sought out sector the Information Technology sector, which
has contributed to the gross domestic product (GDP) of the country, has also helped reduce the
educated unemployment. This sector now faces many hurdles because foreign regulations, global
recession, development of alternative competitive markets. The strategic management approach
if adopted by companies may provide solutions for survival and foster further development of the
Sector. It is the leadership that steers the organization during stormy environmental turbulence
and maintains balance in the waters of survival and existence. Therefore the topic Influence
35
Mythili Kolluru
of leadership on strategic management has been selected with reference to the Visakhapatnam
Information Technology Sector.
RESEARCH OBJECTIVE
The developments in the field of strategic management have been dramatic while the roots
have been in a more applied area often referred to as business policy. The current field of strategic management is strongly theory based with substantial empirical research which is electric in
nature. The Indian Software Sector represents a case of export led growth in a country with a large
domestic market but without a great exporting tradition.
India has achieved this growth by becoming an important part of the global division of
labour in software. The sector contribution to the nations GDP is also noteworthy and its contribution towards employment generation both direct and indirect has helped mitigate the unemployment rate of India.
The current study aims to contribute to the body of research in the field of strategic management by examining the influence of leadership on the process of strategic management in the
rapidly changing environment of the Visakhapatnam Information Technology sector.
DESIGN AND METHODS
This is an empirical study where there are more than two variables involved. Therefore the
population is multivariate in nature. In the current study Strategic management is the dependent
variable and leadership is the independent variable. Regression analysis is a mathematical measure
of the average relationship between two or more variables in terms of the original units of data.
Multiple regression analysis is flexible and is appropriate whenever a quantitative variable (the
dependent variable or criterion variable) is to be examined in relationship to any other factors
expressed as independent or predictor variable. The interrelation between two categorical variables can be tested using multiple regression and analysis of variance. Since this study involves the
analysis of the influence of leadership on strategic management process of Information Technology corporations the statistical tool used for the study are multiple regression analysis and Anova
test. The data required for the research was collected through primary and secondary sources of
information. The population of Information Technology corporations in Visakhapatnam is 70.
While Roscoe advocates a lower limit of 30, (Chassan, 1979), states that 2025 subjects
would appear to be an absolute minimum for a reasonable probability of detecting a difference in
treatment effects. Gay and Diehl (1992), state that generally the number of respondents acceptable
for a study depends on the type of research involved, descriptive correlation or experimental. In
the case of correctional research at least 30 respondents are required to establish a relationship.
In order to get an accurate representation 50% of the population, that is, 35 corporations
were selected. The sample selected was 35 Information Technology corporations.
The evaluation tool selected for the collection of primary data was Questionnaire method.
In comparison to other methods the questionnaire method was preferred as it is cost effective and
the response is standardized.
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Mythili Kolluru
Since the population is small in size therefore most appropriate sampling technique would
be simple random sampling technique as it is cheap, simple and ensures bias is not introduced.
Through this method large number of issues can be addressed in a relatively effective way with the
possibility of a high response rate.
RESEARCH HYPOTHESIS
(Snow and Hrebiniak, 1980) study on linkages between strategy and distinctive competence indicated that although organizational strengths in general and financial management were
important for all strategies, the importance of strengths in basic engineering, research and development, production, and applied engineering varied from one strategy type to another. More recently
(Hitt et al., 1982) also provided similar evidence in support of a systematic relationship between
organizational strategy and the importance of various functions. This study further adds to the
wealth of strategic management knowledge by analysis influence of leadership style on strategic
management practices adopted by the organization. The organizations for the purpose of the study
are Information Technology corporations in the city of Visakhapatnam. The hypotheses framed for
the study are as follows:
Hypothesis 1: Leadership does not have a significant influence on strategic management.
SETTINGS AND PARTICIPANTS
Few decades ago the portrait of India to the world was that of a country beset with poverty, unrestrained population growth and substandard competitiveness. Today due, largely to the
dramatic growth in the software industry, India is emerging as a techno savvy manpower, building
an impressive Information Technology Sector. The Indian software industry has been a remarkable
success story. The Indian Information Technology Sector has played a key role in putting India on
the Global map. The Information Technology Sector has contributed significantly towards revenue
growth, employment generation and value creation. It has also become the global brand ambassador
for India. On an average it has grown 30% per year over the last 20 years. The management of the
organization needs to be effective in such a scenario. In addition to a high contribution to countrys
GDP and share of exports the industry and employees contribute USD 4.2 billion to the exchequer.
As we can see the economic, corporate, legal and social landscape of the Global environment is hyper dynamic in nature all corporations must craft their growth trajectory strategy cautiously. The state of Andhra Pradesh has been steadily contributing 15% to national Information
Technology/Information Technology Enabled Services exports.
The employment generated by A.P Information Technology Sector was 251786 in 2009
2010. Visakhapatnam a Tier-2 city of A.P is constantly increasing its attractiveness towards Information Technology corporations.
Visakhapatnam has registered a growth rate of 35% with exports rising from 372 Cr in
20072008 to 502 Cr in 20082009 to 786 Cr in 20101011.
For Information Technology/Information Technology Enabled Services Corporation of
Visakhapatnam to leverage the advantage they have and to mitigate the disadvantages of Tier-2
37
Mythili Kolluru
destinations they need to strategize themselves and create a competitive advantage over their competitors. Therefore the need for strategy or strategic management is pivotal for the growth of
Visakhapatnam Information Technology Corporations. The current paper studies the Information
Technology sector of a Tier-2 city called Visakhapatnam nestled on the coast of Andhra Pradesh.
The significance of this study is to understand the influence of leadership on strategic management
practices of Information Technology corporations. It is a diligent effort to contribute to the wealth
of knowledge of Strategic Management and provide insights on the Information Technology Sector of the city of destiny.
Visakhapatnam is the second largest city in the state of Andhra Pradesh. It is primarily an
industrial city apart from being a port city. Visakhapatnam is currently ranked as the second largest
urban agglomeration in Andhra Pradesh. Visakhapatnam has experienced high growth in population and the same trend is expected to continue over the next two decades.
It is projected that by 2021 Visakhapatnam would emerge as one of the major cities in the
country. Economic liberalization in the 1990s has brought modest growth to the city, but not as
much as it did to Hyderabad. There are around 105 Software corporations who have generated
a turnover of approximately 786 Cr and created employment to around 10,644 people in the FY
20092010. Visakhapatnam as one of the leading exporting centers was able to make exports
worth of 800 Cr. The units have employed 12,500 persons.
According to Mr. Dubey Software Technology Parks of India Senior Joint Director
Visakhapatnam has emerged as the eighth biggest center for investment in Information Technology and Information Technology Enabled Services Sectors. The Information Technology, Business
Process Outsourcing and Information Technology Enabled Services units in and around sector
Visakhapatnam are expected to generate job opportunities for at least 30,000 persons.
According the (Figure 1), the Visakhapatnam Information Technology sector consists of
105 corporations but only 85 of them are officially registered. Out of those 85 corporations there
are 70 Information Technology corporations, 12 Information Technology Enabled Service firms
and 3 engineering firms. For accurate and precise conclusions 50% of the 70 Information Technology corporations were taken as the sample.
An analysis of 35 Information Technology corporations was undertaken with aim to understand the various facets of the Information Technology corporations. Questionnaire method was
selected for primary data collection. The statistical tool used to analyze the data thus collected is frequency tables and the responses were evaluated on a five point scale of no extent to very large extent.
The objective of this chart is to understand the broad classification of the Visakhapatnam
Software Sector into Information Technology, Information Technology Enabled Services (including Business Process Outsourcing, Medical Transcription and animation) and Engineering services.
It can be observed that Visakhapatnam Software Sector consists of total 85. Out of these
85 corporations there are 70 Information Technology companies, 8 Business Process Outsourcing
corporations, 4 Medical Transcription firms and 3 Engineering Services firms.
On the basis of ( Figure 2), it can be observed that 82% of the corporations are primarily
registered as Information technology corporations, the next highest in the sector are Business Process
Outsourcing corporations who constitute 9% of the sector. Considerably small in number are the
Medical transcription and Engineering services companies who constitute 5% and 4% respectively.
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Mythili Kolluru
80
70
60
50
40
Units
30
20
10
0
ITES
IT
Engineering
Figure 1
Software Units in Visakhapatnam
Source: Compiled by author by interaction with the concerned authorities
45
40
35
30
25
20
15
10
5
0
No of Corporations
STPI
Registered
Units
EOU Units
SEZ
Unregistered
Figure 2
Classification of Information Technology Corporations
From the above given data it can be inferred that a majority of the software sector is inclined
towards providing Information technology services to the clients. Despite the increase in outsourcing and destination cost effectiveness, the city was only able to attract few Business Process Outsourcing companies to open shop.
It is evident that medical transcription and engineering services are still in the nascent stage
and be ranked high in terms of market attractiveness as they are still very few in number.
The objective of the above chart is to understand the registration pattern of the corporations
within the Software Sector of Visakhapatnam.
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Mythili Kolluru
It is observed that there are 20 units registered with Software Technology Parks of India,
25 units as Export Oriented Unit and 40 units are registered with Special Economic Zone. Another
aspect that has come to light is that there are still approximately 20 units that are unregistered.
The Software Technology Parks of India authorities are now challenged with the task to
identify and channelize these corporations into the mainstream of Visakhapatnam Software Sector.
According to this chart it is evident that 38% of the companies are registered with Special
Economic Zone, 24% of the remaining are registered as Export Oriented Organization and 19 % of
the firms are registered under Software Technology Parks of India and finally 19% of the corporations in the Visakhapatnam Software Sector are still not registered with any authority.
EMPIRICAL ANALYSIS OF INFLUENCE OF LEADERSHIP ON
STRATEGIC MANAGEMENT
Model summary
Model
1
a
R
0.359a
R Square
0.129
Adjusted R
Square
0.103
Std. error of the

estimate
3.7775
Predictors: (Constant), LEADER

ANOVAb
Model
1
Regression
Residual
Total
a
b
Sum of
squares
69.790
470.896
540.686
df
1
33
34
Mean square
69.790
14.270
F
4.891
Sig.
0.034a

Dependent variable: SM1
Coefficientsa
Model
1
(Constant)
LEADER
a
Unstandardized coefficients Standardized

coefficients
B
Std error
Beta
20.179
4.371
9.691E-02
0.044
0.359
Sig.
4.616
2.212
0.000
0.034

Table 1
Influence of Leadership on the Perception of Strategy
40
Mythili Kolluru
SM1 = Perception of strategy

We can observe from (Table 1) the linear regression analysis that the predictor leadership
is statistically significant at 5% level of significance with R2 = 0.129 and p = 0.034. The regression
equation is Y = a + bX which can be represented as perception of strategy = 20.179 + 0.0969
leadership. We reject the null hypothesis and state that leadership has a significant influence over
the perception of strategy. It can be observed that leadership brings about a variance in the perception of strategy to the extent of 13%.
SM2 = Perception of strategic management
We can observe from (Table 2) the above regression analysis that the predictor leadership
equation is Y = a + bX which can be represented as perception of strategic management = 19.183
Model summary
Model
1
a
R Square
0.168
Std. error of the

estimate
4.7009
Model
1
R
0.410a
Adjusted R
Square
0.143
ANOVAb
Sum of
squares
df
147.491
1
729.251
33
876.743
34
Regression
Residual
Total
Mean
square
147.491
22.099
F
6.674
Sig.
0.014a
t
3.526
2.583
Sig.
0.001
0.014

Coefficientsa
Model
1
a
(Constant)
LEADER
Unstandardized
coefficients
B
19.183
0.141
Standardized
coefficients
Std error
Beta
5.440
0.055
0.410

Table 2
Influence of Leadership on the Perception of Strategic Management
41
Mythili Kolluru
+ 0.141 leadership. We reject the null hypothesis and state that leadership has an influence on the
perception of strategic management. It can be inferred that there is a variance in strategic management through leadership to the extent of 17%
SM3 = Strategic management stages
From the above (Table 3) linear regression analysis it is observed that the predictor leadership is statistically significantly at 5% level of significance with R2 = 0.2175 and p = 0.005.
Theregression equation is Y = a + bX which can be represented by Strategic management stages
= 8.493 + 0.0783 leadership. We reject the null hypothesis and state that leadership has an influence on the stages of strategic management. It is inferred that there is a significant variance in
stages strategic management through leadership to the extent of 22%.
Model summary
Model
1
a
R
0.466a
R Square
0.217
Adjusted R
Square
0.194
Std. error of the

estimate
2.2328

ANOVAb
Model
1
Regression
Residual
Total
a
b
Sum of
squares
45.660
164.512
210.171
df
1
33
34
Mean square
45.660
4.985
F
9.159
Sig.
0.005a

Coefficientsa
Model
1
(Constant)
LEADER
a

coefficients
B
Std error
Beta
8.493
2.584
7.838E-02
0.026
0.466
Sig.
3.287
3.026
0.002
0.005

Table 3
Influence of Leadership on Strategic Management Stages
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Mythili Kolluru
SM4 = Crafting of strategic statements

From the above linear regression analysis it can be observed from (Table 4) that the predictor leadership is statistically significant at 5% level of significance with R2 = 0.215 and p=0.005.
The regression equation can be written as Y = a + bX which can be represented as crafting of
strategic statements = 13.866 + 0.0201 leadership. We reject the null hypothesis and state that
leadership has a significant influence on crafting of strategic statements to the extent of 22%.
SM5 = Strategic decision makers
From the above (Table 5) regression analysis it is observed that the predictor leadership
is statistically significant at 5% level of significance with R2 = 0.147 and p = 0.023. The regression equation can be written as Y = a + bX which can be represented as strategic decision makers
Model summary
Model
1
a
R
0.463a
R Square
0.215
Adjusted R
Square
0.191
Std. error of the

estimate
5.7624

ANOVAb
Model
1
Regression
Residual
Total
a
b
Sum of
squares
299.761
1095.782
1395.543
df
1
33
34
Mean square
299.761
33.206
F
9.027
Sig.
0.005a

Coefficientsa
Model
1
(Constant)
LEADER
a

coefficients
B
Std error
Beta
13.866
6.668
0.201
0.067
0.463
Sig.
2.079
3.005
0.045
0.005

Table 4
Influence of Leadership on Crafting of Strategic Statements
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Mythili Kolluru
Model summary
Model
1
a
R
0.384a
R Square
0.147
Adjusted R
Square
0.122
Std. error of the

estimate
6.9616

ANOVAb
Model
1
Regression
Residual
Total
a
b
Sum of
squares
276.563
1599.323
1875.886
df
1
33
34
Mean square
276.563
48.464
F
5.707
Sig.
0.023a

Coefficientsa
Model
1
(Constant)
LEADER
a

coefficients
B
Std error
Beta
9.020
8.056
0.193
0.081
0.384
Sig.
1.120
2.389
0.271
0.023

Table 5
Influence of Leadership on Strategic Decision Makers
=9.020 + 0.0193 leadership. We reject the hull hypothesis and state that leadership has an influence on the strategic decision makers to the extent of 15%
SM6 = Compatibility of strategic statements and organizations activities
From the above linear regression analysis it is observed that in the (Table 6) the predictor
leadership is statistically significant at 5% level of significance with R2 = 0.223 and p = 0.004.
The regression equation can be written as Y = a + bX which can be represented as compatibility
of strategic statements and organizational activities = 10.162 + 0.0231 leadership. We reject the
null hypothesis that leadership has an influence on the compatibility of strategic statements with
organizational activities to an extent of 22%.
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Mythili Kolluru
Model summary
Model
1
a
R
0.473a
R Square
0.223
Adjusted R
Square
0.200
Std. error of the

estimate
6.4666

ANOVAb
Model
1
Regression
Residual
Total
a
b
Sum of
squares
397.016
1379.955
1776.971
df
1
33
34
Mean square
397.016
41.817
F
9.494
Sig.
0.004a

Coefficientsa
Model
1
(Constant)
LEADER
a

coefficients
B
Std error
Beta
10.162
7.483
0.231
0.075
0.473
Sig.
1.358
3.081
0.184
0.004

Table 6
Influence of Leadership on Compatibility of Strategic Statements & Organizations Activities
SM7 = Employee comprehension of strategic statements

From the above (Table 7) linear regression analysis it can be observed that the predictor leadership is statistically significant at 5% with R2 = 0.237 and P = 0.003. The regression equation can be
Y = a + bX which can be represented as employee comprehension of strategic statements = 7.807
+ 0.0245 leadership. We reject the null hypothesis and state that leadership has an influence on
ability of the employees to comprehend the strategic statements. It can be inferred that leadership
exerts an influence of 24% on employees ability to comprehend strategic statements.
SM8 = Operational effectiveness of strategic management
The above linear regression analysis implies from (Table 8) that the predictor leadership is
statistically insignificant at 5% level of significance with R2 = 0.088 and p = 0.083. The regression
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Mythili Kolluru
Model summary
Model
1
a
R
0.487a
R Square
0.237
Adjusted R
Square
0.214
Std. error of the

estimate
6.5906

ANOVAb
Model
1
Regression
Residual
Total
a
b
Sum of
squares
445.568
1433.404
1878.971
df
1
33
34
Mean square
445.568
43.436
F
10.258
Sig.
0.003a

Coefficientsa
Model
1
(Constant)
LEADER
a

coefficients
B
Std error
Beta
7.807
7.627
0.245
0.076
0.487
Sig.
1.024
3.203
0.313
0.003

Table 7
Influence of Leadership on Employee Comprehension of Strategic Statements
equation is Y = a + bX which can be represented as operational effectiveness of strategic management = 18.086 + 0.0132 leadership. We accept the null hypothesis. It can thus be inferred that
leadership has no significant influence on the operational effectiveness of strategic management.
SM9 = Support for strategic management issues
From the above linear regression analysis it can be observed from (Table 9) that the predictor
variable leadership is statistically significant at 5% level of significance with R2 = 0.183 and p = 0.010.
The regression equation is Y = a + bX which can be represented as support for strategic management
issues = 7.869 + 0.0216 leadership. We reject the null hypothesis and state that leadership has a
significant influence on the support provided for strategic management issues to an extent of 18%.
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Mythili Kolluru
Model summary
Model
1
a
R
0.297a
R Square
0.088
Adjusted R
Square
0.061
Std. error of the

estimate
6.3480

ANOVAb
Model
1
Regression
Residual
Total
a
b
Sum of
squares
128.954
1329.789
1458.743
df
1
33
34
Mean square
128.954
40.297
F
3.200
Sig.
0.083a

Coefficientsa
Model
1
(Constant)
LEADER
a

coefficients
B
Std error
Beta
18.086
7.346
0.132
0.074
0.297
Sig.
2.462
1.789
0.019
0.083

Table 8
Influence of Leadership on Operational Effectiveness of Strategic Management
SM10 = Employee involvement in strategic management process

The above linear regression analysis indicates from (Table 10) that the predictor leadership
equation is Y = a + bX which can be represented by the equation employee involvement in strategic
management process = 5.553 + 0.0251 leadership. We reject the null hypothesis and state that
leadership influences employee involvement in strategic management process to the extent of 31%.
SM11 = Guiding factors
The above (Table 11) linear regression analysis indicates that the predictor leadership is not
statistically significant at 5% level of significance with R2 = 0.027 and p = 0.342. The regression
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Mythili Kolluru
Model summary
Model
1
a
R
0.428a
R Square
0.183
Adjusted R
Square
0.158
Std. error of the

estimate
6.8579

ANOVAb
Model
1
Regression
Residual
Total
a
b
Sum of
squares
348.154
1552.018
1900.171
df
1
33
34
Mean square
348.154
47.031
F
7.403
Sig.
0.010a

Coefficientsa
Model
1
(Constant)
LEADER
a

coefficients
B
Std error
Beta
7.869
7.936
0.216
0.080
0.428
Sig.
0.992
2.721
0.329
0.010

Table 9
Influence of Leadership on Support for Strategic Management Issues
equation is Y = a + bX which can be represented as guiding factors = 28.172 + (0.043) leadership. We accept the null hypothesis that leadership has no influence on guiding factors.
SM12 = Main obstacles
The above linear regression analysis indicates from (Table 12) that the predictor leadership
is not statistically significant at 5% level of significance with R2 = 0.008 and p = 0.614. The regression equation is Y = a + bX which can be represented as main obstacles = 14.681 + 0.0246 leadership. We accept the null hypothesis that leadership has no influence over the main obstacles. We can
further conclude that leadership has less than one percentage of influence over the main obstacles.
48
Mythili Kolluru
Model summary
Model
1
a
R
0.557a
R Square
0.310
Adjusted R
Square
0.289
Std. error of the

estimate
5.6272

ANOVAb
Model
1
Regression
Residual
Total
a
b
Sum of
squares
468.925
1044.961
1513.886
df
1
33
34
Mean square
468.925
31.665
F
14.809
Sig.
0.001a

Coefficientsa
Model
1
(Constant)
LEADER
a

coefficients
B
Std error
Beta
5.553
6.512
0.251
0.065
0.557
Sig.
0.853
3.848
0.400
0.001

Table 10
Influence of Leadership on Employee Involvement in Strategic Management Process
SM13 = Strategic priorities

The above linear regression analysis indicates that from (Table 13) the predictor leadership is statistically significant at 5% with R2 = 0.225 and p = 0.004. The regression equation
is Y = a + bX which can be represented as strategic priorities = 18.014 + 0.114 leadership.
We reject the null hypothesis and state that leadership influences the strategic priorities of the
organization to an extent of 23%.
49
Mythili Kolluru
Model summary
Model
1
a
R
0.166a
R Square
0.027
Adjusted R
Square
0.002
Std. error of the

estimate
3.9582

ANOVAb
Model
1
Regression
Residual
Total
a
b
Sum of
squares
14.583
517.017
531.600
df
1
33
34
Mean square
14.583
15.667
F
0.931
Sig.
0.342a

Coefficientsa
Model
1
(Constant)
LEADER
a

coefficients
B
Std error
Beta
28.172
4.580
4.43E-02
0.046
0.166
Sig.
6.151
0.965
0.000
0.342

Table 11
Influence of Leadership Selection of Strategic Priorities
INFERENCE ON THE INFLUENCE OF LEADERSHIP ON

STRATEGIC MANAGEMENT
Leadership has a significant influence of 17% over the perception of strategy.
Leadership has an influence of 13% over the understanding and perception of the concept of strategic management.
The various stages of strategic management are influenced to the extent of 22% by the
pattern of leadership.
The process of crafting and formulating the various strategic statements is based on the
leadership of the corporation to the extent of 22%.
Leadership has an influence of 15% on the strategic decision makers.
50
Mythili Kolluru
Model summary
Model
1
a
R
0.088a
R Square
0.008
Adjusted R
Square
0.022
Std. error of the

estimate
4.1743

ANOVAb
Model
1
Regression
Residual
Total
a
b
Sum of
squares
4.519
575.024
579.543
df
1
33
34
Mean square
4.519
17.425
F
0.259
Sig.
0.614a

Coefficientsa
Model
1
(Constant)
LEADER
a

coefficients
B
Std error
Beta
14.681
4.830
2.466E-02
0.048
0.088
Sig.
3.039
0.509
0.005
0.614

Table 12
Influence of Leadership on Main Obstacles
The compatibility of the strategic statements with the organizational activities is influenced by the leadership of the corporation to an extent of 22%.
Leadership has the ability to influence the employees ability to comprehend the strategic statements to an extent of 24%.
The operational effectiveness of strategic management is not influenced by the leadership adopted by the corporation.
Leadership has the ability to provide support for strategic management issues to an
extent of 18%.
Leadership has the power to influence the employees to participate in the process of
strategic management to an extent of 31%.
Leadership does not influence the factors that help to reach organizational objectives.
51
Mythili Kolluru
Model summary
Model
1
a
R
0.475a
R Square
0.225
Adjusted R
Square
0.202
Std. error of the

estimate
3.1632

ANOVAb
Model
1
Regression
Residual
Total
a
b
Sum of
squares
95.970
330.202
426.171
df
1
33
34
Mean square
95.970
10.006
F
9.591
Sig.
0.004a

Coefficientsa
Model
1
(Constant)
LEADER
a

coefficients
B
Std error
Beta
18.014
3.660
0.114
0.037
0.475
Sig.
4.921
3.097
0.000
0.004

Table 13
Influence of Leadership on Strategic Priorities
Leadership does not have a significant influence over the main obstacles.
Leadership has a significant influence over the strategic priorities to an extent of 23%.
CONCLUSION
The Information Technology industry has become one of the most robust industries in the
world. Information Technology more than any other sector or economic facet has increased productivity. It is a key driver of global economic growth. Economies of scale and insatiable demand
from both customer and enterprise characterize this industry. Information Technology is visualized
as a critical enabler for inclusive growth and transformation.
The Indian Information Technology Sector is poised to become US$ 225 billion industry
by 2020. The Indian Information Technology Sector has played a key role in putting India on
52
Mythili Kolluru
the global map. The sector is estimated to have grown by 19 per in the FY2011, clocking revenue of almost US$ 76 billion. The workforce in Indian Information Technology sector will touch
30 million by 2020. Visakhapatnam has the potential to attract the booming Information Technology, given the balanced mix of social infrastructure, fast growing private and public sector units,
talent availability and cost of living, all of which are necessary to fuel the sectors growth. The
Visakhapatnam Information Technology sector should take advantage of the governments accelerated economic reforms and be an active part of the 16.8% Information Technology services
growth which is driven by the localized strategies of service providers.
Though Visakhapatnam Information Technology sector shows the growth potential, our
analysis demonstrates that management style and strategic thinking are not in lieu with international standards. It is shown that there is moderate understanding of strategic management and its
implications. Leadership and organizational structure have a moderate impact on strategic management. Despite the fact that this sector has garnered national and international acclaim it is not
showing the adoption of strategic thinking which is imperative for the survival and prosperity of
this sector in the global scenario.
Government and local authorities must understand the importance of strategic perspective and ensure its adoption both at a macro and micro level as this will give Indian Information
Technology the competitive advantage over its competitors in the international and as well as
in the domestic markets. The Visakhapatnam Information Technology Association (VITA) must
work with the government both at the state and national level to project Visakhapatnam as the next
Information Technology destination. VITA must educate the industry of the importance of strategic management and inculcate a culture of strategic thinking among the Visakhapatnam Information Technology sector. An understanding of strategic perspective is imperative as it gives cutting
edge competitive advantage to the organization and increases the attractiveness of the Information
Technology sector.
Considering that Visakhapatnam is a strong emerging destination among Tier-2 cities in
India it is imperative that the industry here realizes the challenges ahead and addresses them with
dynamic leadership and the appropriate organizational canvas for painting its presence in the global
Information space. The Information Technology sector faces many challenges in the pathway both
at a micro and macro level. India must take initiatives to further the case of this sector and increase
revenues and reduce the educated unemployed. Not only at a macro level but the government must
promote this sector even at a micro level even amongst the Tier-2 locations of the country. This
effort would bring about regional economic balance and overall economic growth.
One such promising state is Andhra Pradesh which accounts for 15% of the nations Information Technology exports. Within the state there are many promising cities like Visakhapatnam,
Kakinada, Vijayawada and Tirupati to mention a few. Visakhapatnam with a cosmopolitan population of over 1.3 million and low operating costs as the ideal Information Technology destination.
The VITA must work with the government to promote the Information Technology into
lime light by understanding the strategic perspective as this develops cutting edge competitive
distinctiveness to survive in the corporate jungle.
An insight into the pattern of leadership that best suits this sector would also provide direction to help find Visakhapatnam Information Technology a place on the global map.
53
Mythili Kolluru
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Influence of Leadership on Strategic Management _ A Study of

Visakhapatnam Information Technology Sector

Strategic Management Review, 9(1), 2015

Influence of Leadership on Strategic Management

Influence of Leadership on Strategic Management

Influence of Leadership on Strategic Management

Influence of Leadership on Strategic Management

Influence of Leadership on Strategic Management

Influence of Leadership on Strategic Management

Influence of Leadership on Strategic Management

Std. error of the

Predictors: (Constant), LEADER

Predictors: (Constant), LEADER

Unstandardized coefficients Standardized

Dependent variable: SM1

Strategic Management Review, 9(1), 2015

Influence of Leadership on Strategic Management

SM1 = Perception of strategy

Std. error of the

Predictors: (Constant), LEADER

Predictors: (Constant), LEADER

Dependent variable: SM2

Strategic Management Review, 9(1), 2015

Influence of Leadership on Strategic Management

Std. error of the

Predictors: (Constant), LEADER

Predictors: (Constant), LEADER

Unstandardized coefficients Standardized

Dependent variable: SM3

Strategic Management Review, 9(1), 2015

Influence of Leadership on Strategic Management

SM4 = Crafting of strategic statements

Std. error of the

Predictors: (Constant), LEADER

Predictors: (Constant), LEADER

Unstandardized coefficients Standardized

Dependent variable: SM4

Strategic Management Review, 9(1), 2015

Influence of Leadership on Strategic Management

Std. error of the

Predictors: (Constant), LEADER

Predictors: (Constant), LEADER

Unstandardized coefficients Standardized

Dependent variable: SM5

Influence of Leadership on Strategic Management

Std. error of the

Predictors: (Constant), LEADER

Predictors: (Constant), LEADER

Unstandardized coefficients Standardized

Dependent variable: SM6

SM7 = Employee comprehension of strategic statements

Influence of Leadership on Strategic Management

Std. error of the

Predictors: (Constant), LEADER

Predictors: (Constant), LEADER

Unstandardized coefficients Standardized

Dependent variable: SM7

Strategic Management Review, 9(1), 2015

Influence of Leadership on Strategic Management

Std. error of the

Predictors: (Constant), LEADER

Predictors: (Constant), LEADER

Unstandardized coefficients Standardized

Strategic Management Review, 9(1), 2015

Strategic Management Review, 9(1), 2015

Strategic Management Review, 9(1), 2015

Strategic Management Review, 9(1), 2015

Strategic Management Review, 9(1), 2015

Strategic Management Review, 9(1), 2015

Strategic Management Review, 9(1), 2015

Strategic Management Review, 9(1), 2015

Strategic Management Review, 9(1), 2015

Strategic Management Review, 9(1), 2015