Hostname: page-component-78c5997874-j824f Total loading time: 0 Render date: 2024-11-14T18:15:55.824Z Has data issue: false hasContentIssue false

Effectiveness of mission statements in organizations – A review

Published online by Cambridge University Press:  02 February 2015

Susanne Braun
Affiliation:
Ludwig-Maximilians-Universität München, Munich, Germany Technische Universität München, Munich, Germany
Jenny S Wesche
Affiliation:
Freie Universität Berlin, Berlin, Germany
Dieter Frey
Affiliation:
Ludwig-Maximilians-Universität München, Munich, Germany
Silke Weisweiler
Affiliation:
Ludwig-Maximilians-Universität München, Munich, Germany
Claudia Peus
Affiliation:
Technische Universität München, Munich, Germany

Abstract

Even though mission statements are standard tools in organizations, their effectiveness is subject to substantial skepticism. This review integrates hitherto published research based on a broad range of objective and subjective effectiveness criteria above and beyond financial performance in for-profit as well as not-for-profit organizations. We conclude that the distal outcome effectiveness of mission statements depends on the following antecedents and intermediate outcomes: (1) the rationale underlying their development; (2) the process of their development and implementation; (3) their content and form; and (4) individual attitudes toward the mission statement. We thereby clarify preconditions of mission statement effectiveness in organizations, and reveal shortcomings in current research.

Type
Literature Review
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abrahams, J. (1995). The mission statement book. New York, NY: Ten Speed Press.Google Scholar
Alavi, M. T., & Karami, A. (2009). Managers of small and medium enterprises: Mission statement and enhanced organisational performance. Journal of Management Development, 28, 555562. doi:10.1108/02621710910959729Google Scholar
Analoui, F., & Karami, A. (2002). CEOs and development of the meaningful mission statement. Corporate Governance, 2, 1320. doi:10.1108/14720700210440044Google Scholar
Atrill, P., Omran, M., & Pointon, J. (2005). Company mission statements and financial performance. Corporate Ownership & Control, 2, 2835.Google Scholar
Bart, C. K. (1996). High tech firms: Does mission matter? Journal of High Technology Management Research, 7, 209225. doi:10.1016/S1047-8310(96)90005-XGoogle Scholar
Bart, C. K. (1997a). Industrial firms and the power of mission. Industrial Marketing Management, 26, 371383. doi:10.1016/S0019-8501(96)00146-0Google Scholar
Bart, C. K. (1997b). Sex, lies, and mission statements. Business Horizons, 40, 918. doi:10.1016/ S0007-6813(97)90062-8Google Scholar
Bart, C. K. (2000). The relationship between mission and innovativeness in the airline industry: An exploratory investigation. International Journal of Technology Management, 20, 475489. doi:10.1504/IJTM.2000.002878Google Scholar
Bart, C. K. (2001). Measuring the mission effect in human intellectual capital. Journal of Intellectual Capital, 2, 320330. doi:10.1108/14691930110400146Google Scholar
Bart, C. K. (2007). A comparative analysis of mission statement content in secular and faith-based hospitals. Journal of Intellectual Capital, 8, 682694. doi:10.1108/14691930710830837Google Scholar
Bart, C. K., & Baetz, M. C. (1998). The relationship between mission statements and firm performance: An exploratory study. Journal of Management Studies, 35, 823853. doi:10.1111/1467-6486.00121Google Scholar
Bart, C. K., & Bontis, N. (2003). Distinguishing between the board and management in company mission: Implications for corporate governance. Journal of Intellectual Capital, 4, 361381. doi:10.1108/14691930310487815Google Scholar
Bart, C. K., Bontis, N., & Taggar, S. (2001). A model of the impact of mission statements on firm performance. Management Decision, 39, 1935.doi:10.1108/EUM0000000005404Google Scholar
Bart, C. K., & Hupfer, M. (2004). Mission statements in Canadian hospitals. Journal of Health, Organisation and Management, 18, 92110. doi:10.1108/14777260410538889Google Scholar
Bart, C. K., & Tabone, J. C. (1998). Mission statement rationales and organizational alignment in the not-for-profit health care sector. Health Care Management Review, 23, 5469.Google Scholar
Bart, C. K., & Tabone, J. C. (1999). Mission statement content and hospital performance in the Canadian not-for-profit health care sector. Health Care Management Review, 24, 1829.Google Scholar
Bart, C. K., & Tabone, J. C. (2000). Mission statements in Canadian not-for-profit hospitals: Does process matter? Health Care Management Review, 25, 4563.Google Scholar
Bartkus, B., & Glassman, M. (2008). Do firms practice what they preach? The relationship between mission statements and stakeholder management. Journal of Business Ethics, 83, 207216. doi:10.1007/s10551-007-9612-0Google Scholar
Bartkus, B., Glassman, M., & McAfee, B. (2000). Mission statements: Are they smoke and mirrors? Business Horizons, 43, 2328. doi:10.1016/S0007-6813(00)80018-XGoogle Scholar
Bartkus, B., Glassman, M., & McAfee, R. B. (2006). Mission statement quality and financial performance. European Management Journal, 24, 8694. doi:10.1016/j.emj.2005.12.010Google Scholar
Blair-Loy, M., Wharton, A. S., & Goodstein, J. (2011). Exploring the relationship between mission statements and work-life practices in organizations. Organization Studies, 32, 427450. doi:10.1177/0170840610397480Google Scholar
Brown, W. A., & Yoshioka, C. F. (2003). Mission attachment and satisfaction as factors in employee retention. Nonprofit Management & Leadership, 14, 518. doi:10.1002/nml.18Google Scholar
Cunningham, S., Cornwell, T. B., & Coote, L. V (2009). Expressing identity and shaping image: The relationship between corporate mission and corporate sponsorship. Journal of Sport Management, 23, 6586.Google Scholar
David, F. R. (1989). How companies define their mission. Long Range Planning, 22, 9097. doi:10.1016/0024-6301(89)90055-1Google Scholar
Davis, J., Ruhe, J., Lee, M., & Rajadhyaksha, U. (2007). Mission possible: Do school mission statements work? Journal of Business Ethics, 70, 99110. doi:10.1007/s10551-006-9076-7Google Scholar
Desmidt, S., Prinzie, A., & Decramer, A. (2011). Looking for the value of mission statements: A meta-analysis of 20 years of research. Management Decision, 49, 468483. doi:10.1108/00251741111120806Google Scholar
Drucker, P. F. (1974). Management: Tasks, responsibilities and practices. New York, NY: Butterworth & Heinemann.Google Scholar
Eysenck, H. J. (1984). Meta-analysis: An abuse of research integration. Journal of Special Education, 18, 4159. doi:10.1177/002246698401800106Google Scholar
Finckh, A., & Tramèr, M. R. (2008). Primer: Strengths and weaknesses of meta-analysis. Nature Clinical Practice Rheumatology, 4, 146152. doi:10.1038/ncprheum0732Google Scholar
Folino, L. (2010, 02 18). The great leaders series: Ben Cohen and Jerry Greenfield, co-founders of Ben & Jerry's Homemade Inc. Retrieved from http://www.inc.com/30years/articles/ben-and-jerry.htmlGoogle Scholar
Ford, R. C., Sivo, S. A., Fottler, M. D., Dickson, D., Bradley, K., & Johnson, L. (2006). Aligning internal organizational factors with a service excellence mission: An exploratory investigation in health care. Health Care Management Review, 31, 259269.Google Scholar
Glass, G. V. (1977). Integrating findings: The metaanalysis of research. Review of Research in Education, 5, 351379. doi:10.3102/0091732X005001351Google Scholar
Herold, D. M., Fedor, D. B., & Caldwell, S. D. (2007). Beyond change management: A multilevel investigation of contextual and personal influences on employees' commitment to change. Journal of Applied Psychology, 92, 942951. doi:10.1037/0021-9010.92.4.942Google Scholar
Hirota, S., Kubo, K., Miyajima, H., Paul, H., & Young Won, P. (2010). Corporate mission, corporate policies and business outcomes: Evidence from Japan. Management Decision, 48, 11341153. doi:10.1108/00251741011068815Google Scholar
Howard, G. S., Lau, M. Y., Maxwell, S. E., Venter, A., Lundy, R., & Sweeny, R. M. (2009). Do research literatures give correct answers? Review of General Psychology, 13, 116121. doi:10.1037/a0015468Google Scholar
Ingenhoff, D., & Fuhrer, T. (2010). Positioning and differentiation by using brand personality attributes: Do mission and vision statements contribute to building a unique corporate identity? Corporate Communications: An International Journal, 15, 83101. doi:10.1108/13563281011016859Google Scholar
Ireland, R. D., & Hitt, M. A. (1992). Mission statements: Importance, challenge, and recommendations for development. Business Horizons, 35, 3442. doi:10.1016/0007-6813(92)90067-JGoogle Scholar
Kim, S. E., & Lee, J. W. (2007). Is mission attachment an effective management tool for employee retention? An empirical analysis of a nonprofit human services agency. Review of Public Personnel Administration, 27, 227248. doi:10.1177/0734371x06295791Google Scholar
Kirk, G., & Nolan, S. B. (2010). Nonprofit mission statement focus and financial performance. Nonprofit Management & Leadership, 20, 473490. doi:10.1002/nml.20006Google Scholar
Klemm, M., Sanderson, S., & Luffman, G. (1991). Mission statements: Selling corporate values to employees. Long Range Planning, 24, 7378. doi:10.1016/0024-6301(91)90187-SGoogle Scholar
Marcus, A. A., & Anderson, M. H. (2006). A general dynamic capability: Does it propagate business and social competencies in the retail food industry? Journal of Management Studies, 43, 1946. doi:10.1111/j.1467-6486.2006.00581.xGoogle Scholar
McDaniel, M. A., Rothstein, H. R., & Whetzel, D. L. (2006). Publication bias: A case study of four test vendors. Personnel Psychology, 59, 927953. doi:10.1111/j.1744-6570.2006.00059.xGoogle Scholar
McDonald, R. E. (2007). An investigation of innovation in nonprofit organizations: The role of organizational mission. Nonprofit and Voluntary Sector Quarterly, 36, 256281. doi:10.1177/0899764006295996Google Scholar
Mullane, J. V. (2002). The mission statement is a strategic tool: When used properly. Management Decision, 40, 448455. doi:10.1108/00251740210430461Google Scholar
O'Gorman, C., & Doran, R. (1999). Mission statements in small and medium-sized businesses. Journal of Small Business Management, 37, 5966.Google Scholar
Palmer, T. B., & Short, J. C. (2008). Mission statements in US colleges of business: An empirical examination of their content with linkages to configurations and performance. Academy of Management Learning and Education, 7, 454470. doi:10.5465/AMLE.2008.35882187Google Scholar
Pearce, J. A. II, & David, F. R. (1987). Corporate mission statements: The bottom line. Academy of Management Executive, 1, 109116. doi:10.5465/ AME.1987.4275821Google Scholar
Posthuma, R. A., Morgeson, F. P., & Campion, M. A. (2002). Beyond employment interview validity: A comprehensive narrative review of recent research and trends over time. Personnel Psychology, 55, 181. doi:10.1111/j.1744-6570.2002.tb00103.xGoogle Scholar
Rosenthal, R. (1979). The file drawer problem and tolerance for null results. Psychological Bulletin, 86, 638641. doi:10.1037/0033-2909.86.3.638Google Scholar
Rosenthal, R., & DiMatteo, M. R. (2001). Metaanalysis: Recent developments in quantitative methods for literature reviews. Annual Review of Psychology, 52, 5982. doi:10.1146/annurev.psych.52.1.59Google Scholar
Siciliano, J. I. (1997). The relationship between formal planning and performance in nonprofit organizations. Nonprofit Management & Leadership, 7, 387403. doi:10.1002/nml.4130070405Google Scholar
Sidhu, J. (2003). Mission statements: Is it time to shelve them? European Management Journal, 21, 439446. doi:10.1016/S0263-2373(03)00072-0Google Scholar
Smith, M., Heady, R. B., Phillips Carson, P., & Carson, K. D. (2001). Do missions accomplish their missions? An exploratory analysis of mission statement content and organizational longevity. Journal of Applied Management and Entrepreneurship, 6, 7596.Google Scholar
Stallworth Williams, L. (2008). The mission statement: A corporate reporting tool with a past, present, and future. Journal of Business Communication, 45, 94119. doi:10.1177/0021943607313989Google Scholar
Suh, T., Houston, M. B., Barney, S. M., & Kwon, I.-W.G. (2011). The impact of mission fulfillment on the internal audience: Psychological job outcomes in a services setting. Journal of Service Research, 14, 7692. doi:10.1177/1094670510387915Google Scholar
Urbany, J. E. (2005). Inspiration and cynicism in values statements. Journal of Business Ethics, 62, 169182. doi:10.1007/s10551-005-0188-2Google Scholar
Vandijck, D., Desmidt, S., & Buelens, M. (2007). Relevance of mission statements in Flemish not-for-profit healthcare organizations. Journal of Nursing Management, 15, 131141. doi:10.1111/j.1365-2834.2007.00669.xGoogle Scholar
Vigoda-Gadot, E., & Angert, L. (2007). Goal setting theory, job feedback, and OCB: Lessons from a longitudinal study. Basic and Applied Social Psychology, 29, 119128. doi:10.1080/01973530701331536Google Scholar
Weiss, J. A., & Piderit, S. K. (1999). The value of mission statements in public agencies. Journal of Public Administration Research and Theory, 9, 193223. doi: cgi/content/short/9/2/193Google Scholar
Whitbred, R., Skalski, P., Bracken, C., & Lieberman, E. (2010). When richer is poorer: Understanding the influence of channel richness and presence on the introduction of a mission statement. PsychNology Journal, 8, 115139.Google Scholar
Wilson, I. (1992). Realizing the power of strategic vision. Long Range Planning, 25, 1828. doi:10.1016/0024-6301(92)90271-3Google Scholar