Strategic Thinking's Relationship to Strategic Capabilities

Abstract

This article examines the application of strategic thinking in the process of organizational strategic management, it comprises the formation and implementation of unique insights and opportunities. It, therefore, creates a competitive advantage for a company or institution. Through key figures to effect positive change for the organization's future, strategic thinking can be accomplished individually or in collaboration. Strategic capabilities are those abilities that distinguish the organization from others to generate and maintain resources, use modern management techniques, and generate technical knowledge to create added value for stakeholders.Strategic thinking is considered its dimensions are (strategic vision, strategic creativity, strategic mind) of dependent variable is strategic capabilities, while its (technological capabilities, administrative capabilities, creative capabilities). It is concluded from the variables that the independent variable is strategic thinking, which has an impact on the dependent variable, which is strategic capabilities. The research sample was represented by a group of individuals working in the Babylon Health Department. The questionnaire was presented to a selected group of (123) employees working in the department. Through several statistical methods, the research reached several results, including that both the independent variable strategic thinking and the dependent variable strategic capabilities are related to each other in a correlation relationship. And that strategic thinking has a direct impact on strategic capabilities

Hightlights:

Strategic Thinking: Enhances insights, collaboration, and competitive advantage creation.
Strategic Capabilities: Focus on resources, management, and knowledge for stakeholder value.
Findings: Strategic thinking directly impacts strategic capabilities in organizations.

Keywords: Strategic thinking, strategic capabilities

Introduction

This issue, with its own path, relieves the mind from the burden of sorting through cluttered thoughts and unnecessary perceptions. Hence, the mind does not need while contemplating a specific subject with defined goals. However, one needs to take steps to make his/her vision a reality. In addition to starting important projects and setting timelines that align with the selected vision as well as monitor progress through holding meetings and presenting reports on time. Managerial capabilities refer to employees' ability to perform a range of responsibilities, tasks, and activities within the social work environment, which involves mental, cognitive, and operational processes such as planning, execution, enabling them to optimize their material and human resources. Since strategic capabilities are broad and represent a set of indicators that extend to evaluate the organization's strategic capabilities, researchers differ in their estimations on this concept. Some focus on it as a set of activities, while others consider it a set of assets

Methods

The research problem: The research problem was represented in the extent (the impact of strategic thinking on strategic capabilities) and it is concluded through the variables, which is the variables strategic thinking, whose impact on the performance increases and at the overall level, there is an impact of the performance variables, of therefore some researchers put forward important, new and innovative ideas in the work, and urge individuals to make decisions and express their opinions at work. There are a set of research questions.

The research importance: Strategic thinking refers to the availability of the necessary capabilities and skills to make future predictions with the possibility of formulating strategies and making decisions adapted to the life of the organization to win most competitive positions in light of its limited resources.

Research objectives:

1-Determining the theoretical framework related to the research variables (strategic thinking, strategic capabilities) and clarifying its concepts.

2-Testing and studying the nature of the association and effects between the studied variables.

3-Clarifying the relative importance of the components of the independent variable (strategic thinking) in terms of their impact on the dependent variable (strategic capabilities).

4-Attempting to present and clarify a set of recommendations supported by a number of mechanisms in light of the results to be reached, which would raise the cognitive and organizational level of the studied sample.

5-Explore the concept of strategic thinking by searching for differences within a community of strategic thinkers to contribute to the development of the concept of strategic thinking.

The hypothetical research plan:

1-variable is strategic thinking, symbolized by strategic thinking and its dimensions (vision, creativity, mind)

2-The dependent variable is strategic capabilities, is strategic capabilities in dimension (technological capabilities, administrative capabilities, creative capabilities)

Research hypotheses:

Correlation hypotheses

1-On a strategic thinking and strategic capabilities with each of its dimensions.

2-is strategic thinking and strategic capabilities each of its dimensions.

Hypotheses of influence

1-no the dimensions of strategic thinking and strategic capabilities with each of its dimensions

2-is a dimensions of strategic thinking and strategic capabilities with each of its dimensions

Statistical methods

use of the correlation coefficient (Pearson), and the simple internal regression coefficient

Result and Discussion

The Concept of Strategic Thinking:

Initially, can be the study of and intellectual skills that are essential for human life and for conducting all strategic activities as well as performing the duties of strategic management. It includes defining the organization's mission, goals, objectives, planning, organizing, as well as controlling the organization's strategy. Contemporary management thinking has seen intensive use of the term strategic thinking, which was widely used twentieth century, especially within the framework of strategic management. strategic thinking need to be prevented, as well as opportunities that need to be pursued. Is type of thinking should take in account economic facts, markets forces, and availables ) Mahmoud ,2000:45)

Since strategic thinking is considered a specific mental path with its own trajectory that relieves the mind from the burden of sorting through cluttered thoughts and unnecessary perceptions that the mind does not need while contemplating a specific subject with defined goals. Strategic thinking can also be defined as those mental and cognitive processes that leaders use when considering problems that require decision-making, and dealing with this dimension requires a very precise evocation of the actual situation faced by the leader (Ahmed, 2005:25) The method of analyzing situations facing the organization's. It is the method through which the organization is able to guide itself from the beginning of the transition from administrative processes and activities to ultimately make the best possible use of organizational capabilities in a fundamentally future-focused manner without neglecting the past ( Al-Douri, 2005 :20)

The Importance of Strategic Thinking:

1-Prioritizing and determining priorities, and disseminating them among employees.

2-Developing the ability to shape the future.

3-Clarity of vision, as it is like sight and insight for humans.

4- Handling events and facts effectively by utilizing time and preparing with sufficient intellectual, material, and human resources. (Al-Ajmi,2012:54)

Features of Strategic Thinking:

There are many features for the strategic thinking, such as:- (Al-Khafaji ,2016:46)

1-It is divergent or exploratory thinking, innovating in the search for new ideas and discovering innovative applications for previous knowledge.

2- It is competitive thinking among opposites and forces, aiming to seize opportunities before others.

3- It is optimistic thinking, relying on human mentality to penetrate the unknown world and the possibilities that may occur.

The Dimensions of Strategic Thinking:

It is a long-term and comprehensive image on organization goals and ways those goals. It guides the company's strategy and decisions, allowing the organization to identify environmental changes and respond to them, as well as to define clear goals and priorities, and allocate resources to achieve those goals. However, you also need to take steps to make your vision a reality. Start important projects and set timelines that align with your vision. Monitor progress through holding meetings and presenting reports on time. And you can easily do that. (Jaussi ,2005:33)

He added that it is an image of what the company wants, in general terms, to achieve ultimately, so the vision statement clarifies the ideal description of the organization and gives shape to its intended . (K.S. Jaussi, 2005 :34)

As for modified ideas that could lead to the production of new products or services. Or new technological processes or entering and investing in new markets. It also indicates the great role of creativity in the leadership of the organization because it achieves balance within the market and achieves high returns. describes creativity as providing new or modified products by rearranging new ideas to come up with something new that can be applied, and indicates that creativity is linked to the organization’s resources, whether financial or non-financial resources, as studies have shown that organizations with limited resources face great difficulties in continuing activities. Creativity. (Nickell &et.al ,1976 :43)

While viewed creativity as the organization’s attempt to depart from everything that is familiar and translate creative behavior into an outcome that may be an idea, a commodity, a service, a method, a theory, or a concept. ( Jaussi ,2005: 12)

he believes that creativity is the main element in the organization’s strategy Furthermore, the strategic mind as a second feature, analyze the internal environment of the organization requires the use of a global strategic mind. (Al-Masoudi ,2007 :34)

What is meant by to the existence of one market, one culture, or one context because The organization can expand its artificial boundaries, and strategic managers who possess a global mind realize that the organization it to determine the appropriate response to the competitive situation and achieve competitive advantage.( Al-Masoudi,2007: 47)

Qualities and characteristics of strategies thinking

1-Democratic orientation and adoption of the principle of participation.

2-Combining interest in improving the organization’s performance and productivity with planning

3-The advanced scientific and technical methodology in its responses to problems after predicting them and their future dimensions and resulting solutions, compared to immediate and immediate solutions . ( Al-Masoudi,2007: 50)

4-Linking thought to action and application to bring about and evaluate change.

5-Shifting from just talking about change to achieving change and implementing it in the organization, society and the environment surrounding it.

6-Develop improvements in an appropriate manner consistent with the characteristics of the organization. ( Al-Rikab ,2004:45)

Strategic capabilities:

The concept of strategic capabilities has emerged, similar and synonymous concepts represented by the core ability or competence, which is the previous step to the organization’s understanding of its strategic capabilities11. There have been many opinions related to defining what is meant by strategic capability, some of whom defined it in terms of the descriptive approach and the quantitative approach. The descriptive is concerned with the characteristics that characterize the organization, and the quantitative It includes the concepts that describe strategic capability as broad-ranging, as well as the set of badges that extend to evaluating the organization’s strategic capabilities. ( Al-Sultan,2006:45)

Researchers’ opinions differ on this concept, as some of them focused on it being a set of activities, and some considered it as a set of assets, or a set of experiences14. Strategic capabilities are defined as the ability that enables an organization to achieve superiority over its competitors through competitive advantage. (Ibrahim,2005:64)

Strategic capability is demarcated as the set of activities that organizations perform in order to achieve success and leadership in their work through the optimal allocation of resources and tasks, which leads to the development and growth of those organizations in the long term. Some believe that strategic capability is the collective knowledge and skills that distinguish organization from its competitors. ( Sobhi,2009:26)

It is agreed that strategic capabilities are a package of experiences, skills, attributes, unique resources and strengths that help the organization to create economic value and maintain competitive advantage. (Sayed,2001:78)

While was defined as identifying knowledge, characteristics, and other skills that are important and necessary to perform tasks. Both believe that strategic capabilities are a set of behaviors and trends that affect an individual’s performance and improve their performance through training and development , and point out that it is the ability through which the organization is able to achieve superiority and distinction over competitors, by relying on skills, experience and knowledge. The resources and technology used and the strengths it possesses that help it achieve its goals. ( Bernardin , John ,2007:33 )

he defines strategic capability as characteristics that emanate from within the organization and are its strengths that give it distinction from competitors for the sake of its collective knowledge, skills and accumulated experience(Khalil,2014:76), which contribute to seizing opportunities and reducing the impact of threats. (Rashid,2009:55) Strategic capability is the skills, capabilities, and capabilities possessed by the human resource in the organization, which are the basis and main weapon for creativity and strategic thinking.

Dimensions of strategic capabilities:

1-Administrative capabilities, defined if, are the mental or mental processes that result in activities carried out by the individual within the family or community of friends, through which the individual’s human and non-human resources are directed and used to satisfy his needs, carry out his functions, fulfill his responsibilities, and achieve his goals.

( Zeinab,2003:48)

2-Technological capabilities: - pointed out that technological capabilities are sequential procedures that create or create technological knowledge through interaction with the environment and the accumulated skills present in the organization21, and also indicated, due to the reliance of many organizations today on technology in managing their work affairs.( Lall, S.,1992 :26).

3-Creative abilities: - is defined as cognitive processes of problems, gaps, changes, and contradictions in knowledge related to any of the areas that are appreciated by the group, and that these abilities are fluency, flexibility, originality, in addition to details. (Abu Baker, Amad Baker, 2005)

Practical aspect

This section includes data analysis of the questionnaire form prepared according to the sample size was (130) of the individuals working in the Babylon Health Department, and the number of questionnaires after collecting them from the research sample individuals was (123) and the invalid ones from the form were (7). The researcher used statistical means to measure the direct correlation and influence between each of (strategic thinking and strategic capabilities

Table 1.Arithmetic means for the independent variable (strategic thinking)
Order	Coefficient of variation%	Standard deviation	Variance	Relative importance%	Arithmetic mean	Strategic Thinking
The first dimension: strategic vision
1	48%	1.49	2.21	62%	3.12	X1
9	54%	1.47	2.17	55%	2.75	X2
5	51%	1.48	2.19	58%	2.88	X3
	%51	1.48	2.19	58%	2.92	General Index
The second dimension: strategic creativity
6	52%	1.49	2.21	57%	2.85	X1
4	52%	1.49	2.22	58%	2.89	X2
3	52%	1.51	2.27	58%	2.90	X3
	%52	1.49	2.23	%58	2.88	General Index
The third dimension: the strategic mind
7	%53	1.51	2.27	%57	2.83	X1
7	%54	1.53	2.36	%57	2.83	X2
2	%50	1.47	2.15	%59	2.94	X3
	%52	1.50	2.26	%57	2.87	General Index
	%52	1.49	2.23	%58	2.89	Overall index of strategic thinking

Source: - according to the results of the computer programs of Table No. (1) show the general and overall indicators for all . The first dimension, the strategic vision, had a general indicator for the arithmetic mean values of 2.92, while the general indicator for the relative importance value was 58%, and the variance value achieved a general indicator of 2.19, while the general standard deviation value was 1.48, and the coefficient of variation value according to the general indicator for all paragraphs of the strategic vision was 51%. The first paragraph (X1) achieved first place. As for the general indicator for the paragraphs of the second dimension (strategic creativity), the arithmetic mean values were 2.88, while the general indicator for the relative importance value was 58%, and the variance value achieved a general indicator of 2.23, while the general standard deviation value was 1.49, and the coefficient of variation value according to the general indicator for all paragraphs of strategic creativity was 52%, and X6 came in third place. The general indicator for the paragraphs of the third dimension (strategic mind) for the arithmetic mean values 2.87 The result of the general index of the relative importance value was 57%, and the variance value achieved a general index of 2.26, while the general standard deviation value was 1.50, and the coefficient of variation value according to the general index for all paragraphs of the strategic mind was 52%, and X9 came in second place. The overall index of strategic thinking, the total arithmetic mean value of the independent variable was 2.89, and the total variance value was 2.26, and the relative importance had a total value of 57%, the total standard deviation was 1.50, and the coefficient of variation had a total value of 52%.

Table 2.Arithmetic means and standard deviation of the dependent variable (strategic capabilities)
Order	Coefficient of variation%	Standard deviation	Variance	Relative importance%	Arithmetic mean	strategic capabilities
The first dimension: Technological capabilities
5	53%	1.46	2.14	55%	2.74	X1
9	55%	1.45	2.10	53%	2.65	X2
3	53%	1.46	2.14	56%	2.78	X3
	%54	1.46	2.13	54%	2.72	General Index
The second dimension: Administrative capabilities
4	52%	1.44	2.08	55%	2.77	X4
6	53%	1.44	2.08	54%	2.71	X5
7	54%	1.46	2.13	54%	2.71	X6
	%53	1.45	2.09	%55	2.73	General Index
The third dimension: Creative abilities
8	56%	1.49	2.22	54%	2.68	X7
2	52%	1.49	2.21	57%	2.85	X8
1	51%	1.47	2.15	58%	2.90	X9
	%53	1.48	2.19	%56	2.81	General Index
	%53	1.46	2.14	%55	2.76	Overall Index of Strategic Capabilities

On calculator Table (2) shows the results in arithmetic means, standard deviation, variance, relative importance, and coefficient of variation for the second dependent variable (strategic capabilities). The first dimension, technological capabilities, the general index of the arithmetic mean values was 2.72. As for the general index of the relative importance value, it was 54%, and the variance value achieved a general index of 2.13, while the general standard deviation value was 1.46, and the coefficient of variation value according to the general index for all paragraphs of technological capabilities was 54%, and X3 came in third place. The general index for the paragraphs of the second dimension (administrative capabilities), the arithmetic mean values were 2.73, and the result of the general index of the relative importance value was 55%, and the variance value achieved a general index of 2.09, while the general standard deviation value was 1.45, and the coefficient of variation value according to the general index for all paragraphs of administrative capabilities was 53%. The general index of the paragraphs of the third dimension (creative abilities) achieved an arithmetic mean value of 2.81 and the result of the general index of the relative importance value was 56%, while the variance value achieved a general index of 2.19, while the general standard deviation value was 1.48, and the value of the coefficient of variation according to the general index for all paragraphs of creative abilities was 53%. Paragraph X9 came in first place and paragraph X8 in second place. As for the overall index of strategic abilities, the total arithmetic mean value of the independent variable was 2.76, while the total variance value was 2.14, the relative importance value was 55%, the total standard deviation was 1.46, and the coefficient of variation had a total value of 53%.

The results presented in Table (4) show that there is a strong positive correlation between strategic thinking and strategic capabilities, with statistical significance at the significance level (0.05). The value of the simple correlation coefficient between them reached (90.37%) and the value of (calculated T 23.28), which is greater than the value of (table T) which is (1.96). Based on the above results, the correlation hypothesis is accepted.

The final results included in Table No. (4) show

1-The calculated value of (F) for strategic thinking reached (13.48), which of (F) which is (10.1) at a significance level of (0.05). From these results, it is clear a significant and statistically significant strategic thinking & strategic capabilities with a confidence level of 95%.

2-The interpretation coefficient (R2) reached a value of (81.7%), which shows that strategic thinking is able to explain (81.7%) of the variables that affect strategic capabilities, while the remaining percentage (18.3%) can be current research

Conclusion

1-is strategic capabilities, have a strong positive correlation, as is clear from the linear regression model that there is an effect of strategic thinking on the dependent variable, strategic capabilities.

2-Strategic creativity is an essential resource for differentiating employees and enhancing their ability to communicate them throughout their organizations, and it covers what every expert must fully understand about the creative process.

3-Capabilities affect the performance of the individual and improve their performance through training and development, through which the organization is able to achieve superiority and distinction over other competitors.

4- Determine the appropriate response to the competitive situation and achieve competitive advantage.

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