EFFECTIVENESS OF STRATEGY IMPLEMENTATION APPROACHES IN GERMAN MULTINATIONAL COMPANIES IN THE SOFTWARE INDUSTRY: A CASE STUDY OF SAP SE

Abstract

Various approaches to aiding multinational companies (MNCs) in the strategyimplementation process have been suggested. However, MNCs in the software industry, such
as the German company SAP SE, operate in a diverse, dynamic, and challenging environment
that can make effective strategy implementation difficult. This study aims to determine which
of several strategy-implementation methods is most effective for SAP SE: the commander
approach, the organizational-change approach, the collaborative approach, or the cultural
approach. The researcher addresses the research questions using qualitative research based on
a descriptive research design, collecting primary data from the top managers in SAP SE. A
total of 58 participants engaged in the study’s structured questionnaire (n = 51) and interview
(n = 7). While the collaborative approach to strategy implementation is dominant, this
research shows significant differences in effectiveness between the collaborative approach
and both the commander approach (P = 0.022) and the organizational-change approach (P =
0.035). Likewise, differences in effectiveness exist between the cultural approach and the
commander approach (P = 0.024). This study also describes various challenges in using the
highlighted strategy-implementation tactics, suggesting through its outcome that a combined
approach best enables managers to address difficulties as they arise. This study suggests that
managers of MNCs in the software industry consider adopting a collaborative approach as a
means of creating synergy across units and locations. A combined approach could also
address the challenges faced during strategy implementation.