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Strategic Management Practices in the Public Sector: A literature review –


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Int. J. Adv. Multidiscip. Res. (2022). 9(2): 88-104

International Journal of Advanced Multidisciplinary Research


ISSN: 2393-8870
www.ijarm.com
(A Peer Reviewed, Referred, Indexed and Open Access Journal)
DOI: 10.22192/ijamr Volume 9, Issue 2 -2022
Review Article DOI: http://dx.doi.org/10.22192/ijamr.2022.09.02.008

Strategic Management Practices in the Public Sector:


A literature review – Descriptive

Ahmad Jamshid Safi*


Research Scholar, School of Management, University of GD Goenka,
Syed Mohd. Jamal Mahmood
Assistant Professor, School of Management, University of GD Goenka, Gurgaon – India
*
Corresponding Author: Ahmad Jamshid Safi
E-mail: ahmad.jamshid2010@gmail.com/ 200010602002.ahmad@gdgu.org

Abstract
Purpose – this paper critically reviews the empirical studies that have been
conducted to concentrate on the formulation, implementation, and evaluation of
strategies within public sector organizations.
Design/ methodology/approach- For the purpose of academic literature review of
the topic, descriptive critical review method was applied, where most of the related
academic journal papers since 2000 have been considered and later on carefully
selected from the most notable academic and scholarly Journal’s publication in the
Keywords
Strategic Management through searching the scholarly databases engines.
Strategy, Findings- Findings of this literature review have shown that still most of the public
Strategic sector organizations struggling to copy and adopt the practices and models from the
Management, private sectors in their agenda. Nevertheless, while it comes to research on Strategic
Public Sector. Management practices in the public sector, very few studies have been conducted in
this domain.
Research limitation/implications- this literature review has been conducted to
critically summarize a limited number of the key journal papers since 2000, not
beyond that.
Practical implication- This study declared the importance of strategic management
practices for all public sector organizations and distinguished them as a crucial tool
in the public sector to advance and reach successfully to their set objectives.
Originality- these findings of this paper excavate different views on SM in the
public sector and underline some missing parts in this domain to be addressed.

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Int. J. Adv. Multidiscip. Res. (2022). 9(2): 88-104

1. Introduction significantly different. On the other hand, John


Bryson and Bert George define Public Strategic
The term Strategy is originally the combination Planning as an approach for strategy formulation
of two Greek words, Stratos means the army and that covers both issues related to external and
ago means to lead, and in general means, the internal analysis and ways to tackle these issues to
leading and guidance come from the high rank of eventually come up with a vision for the future of
a military division. It has been claimed that the the public sector (John & Bert, 2020).
use of Strategy goes back to at least 400 years
B.C (Jezak, 1990). Bryson also emphasizes that strategic planning
in the public sector gives the big picture that
The online business dictionary [1] defines guides the organization, what it does, and why it
Strategy as a method or a plan to achieve a goal does, and Strategic planning is wider than
or to find a solution to a problem that has been programming, budgeting, or operating whiten the
chosen to bring the desired future. organization. This definition ascertains strategic
planning as an approach to Strategizing in the
Nevertheless, the Strategy is being practiced by public sector (Bryson, 1995). Refer back to the
the people, it is defined as something that definition of strategy provided by John Bryson
organizations do (Mintzberg, 1994). Also earlier and Bert George, strategizing replies to main
to this Mintzberg, defined Strategy in the sphere confusions regarding strategy in the public sector,
of position, perspective, plan, ploy, and pattern first that strategy is about something to do rather
has known as Mintzberg's Five "P"s (Mintzberg, than just having it and also strategy is typically
1987; Mintzberg & and Waters, 1985). longer-term, which distinguish and present
planning aligned with the implementation.
Rumelt argued that Strategy is not just about (Golsorkhi, Rouleau, Seidl &Vaara, 2015).
planning, visioning, leadership, or motivation but
rational action. He backs up his argument by Sterib and Poister declared that Strategic
introducing the term bad strategy versus good Planning initially used in the private sector
strategy (Rumelt, 2011). during 1950, even it was considered the solution
for every problem during 1960-1970 in the private
Strategy use by the public and as well as the sector and after 1980, it got the attention of the
private sector. Strategy in the public sector is public Sector that afterward adopted broadly by
not just a tool to compete but more broadly a Public Management whereas after the emergence
means to provide public services by a public of New Public Management it's almost considered
agency or a network (Boyne & Walker, 2004). a must for every public institution (Streib &
Poister, 1990; David, 2007).
Mulgan defines that, Public Strategy is the
In the Public Strategic Management literature,
systematic use of public resources and power, by
the terms and the concept of strategic planning
public institutions to achieve the public goals that
and strategic management are often used
consider the strategy at the level of the political
interchangeably by scholars. But generally,
economy, strategy at the geopolitics or strategy at
Strategic Planning is referred to as the
the level of public service systems (Mulgan,
formulation stage of the strategy while Strategic
2009).
Management covers the formulation,
implementation, and evaluation stages of the
While recently, John Bryson and Bert George,
strategy. (David & Forest F, 2017).
define Public Strategy as a concrete approach to
align the aspiration and the capabilities of a public
Besides, Dr. Fred R. David the famous author of
institution to achieve their set goal, and how well
notable strategic management books[2] defines
they align the aspiration and capabilities could be
Strategic Management generally as the art and
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Int. J. Adv. Multidiscip. Res. (2022). 9(2): 88-104

science that help institutions to achieve their organization get there and finally how the
objectives by formulating, implementing, and organization makes sure that reaches to the
evaluating cross-functional decisions. desired destination (David & Forest, 2017;
Hoglund, 2015; Thomas & David, 2012; Witcher
The above definition is mostly applicable to the & Chau, 2011; Charles & Gareth, 2010; David,
private sectors while Strategic Management in 2007; Alan, 2003; Harold, 2001; Denise,2000; ).
the public sector is the application of strategic
thinking to lead the organization to the big Besides this, a contemporary definition of Public
picture[3]and help the organization to adapt to Strategic Management is provided by Ferlie and
change by formulating the organization's mission Ongaro, who argued that Strategic Management is
taking into account the external factors, the strategizing approach of public organizations
developing a competitive strategy to achieve its by incorporating the strategies formulation,
mission and creating an organizational structure strategies implementation, and continuous
to manage resources effectively for carrying out strategic learning that not only helps the public
its competitive strategy (Alan, Richard, Mason & organization to achieve their key objectives but
Karl, 1982). also creates public value (Ferlie & Ongaro, 2015).

Furthermore, Scholars are agreed that Strategic The mentioned topics can be summarized as key
Management both in Private and Public concepts that need to be considered while
sectors is broadly trying to provide answers for studying strategic management practices in the
the key questions of where the organization is, public sector (see Figure 1).
where the organization wants to go, how the

Figure 1. The concepts and their relation to be considered while studying strategic management practices in
the public sector

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Int. J. Adv. Multidiscip. Res. (2022). 9(2): 88-104

2. Review Method scholarly Journal’s publication in the Strategic


Management through searching the scholarly
There have been different studies conducted in the databases engines.
context of Strategic Management Practices in the
Public Sector by various scholars, through using 2.1. Literature review matrix
different methods and approaches in several
intervention areas since 1985. For the purpose of While analyzing the selected paper from 2018-
academic literature review of the topic, most of 2010, besides critically summarizing the key
the related academic journal papers since 2000 findings, all key aspects of the selected paper
have been considered and later on carefully have been presented as a literature review matrix
selected from the most notable academic and (See Table).

Table I : Literature review matrix for some of the selected, exclusively relevant papers on Strategic
Management practices in the public sector 2010 – 2018.

Author
(Year) Topic/ Title of the Type of Source of Research Research
paper Research Data Tools Methodology

StrategicManagement A Swedish -Interviews -Interviews


Linda, in the public sector: qualitative Transport -The STA -Workshops
et.al How tools enable and approach / Administration website -A document
(2018) constrain strategy the Case (STA) -The strategic study of
making. study plan& formal
approach balanced management
Scorecards
-PowerPoint
for the
workshop
Aithal, Strategic A Critical -research -websites of Document
P.S. Management Study publication the review of
(2018) Research in India: data of various management official
Contribution of Top top business institutions public data
Business Schools schools of -Google
during the Last 5 India as scholar search
Years published by facility for
NIRF Ranking 2014 - 2018
of Govt. of
India.
Leskaj, E. The challenges faced -secondary -the existing The Survey
(2017) by the strategic research/ literature, questionnaire
management of extensive -In the empiric
public organizations. literature study
search & administrators
- primary of 48 public
research/ organizations
empiric
study
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Int. J. Adv. Multidiscip. Res. (2022). 9(2): 88-104

Hakan, Ş. Strategic Planning in A qualitative -MoI The -


(2016) the public sector: the study based departments questionnaire Documentary
case of the Turkish on a case- data and their Data
Ministry of Interior study design responses -Semi-
with a record for the structured
single-case interviews Interviews
focus
Age, J. Strategic -Case study -Analysis of 35, - Master -
(2015) Management -Observation SM of 29 student Convenience
Thinking and various assignments sampling
Practice in the Norwegian on the -Interviews
Public Sector: A public sectors selected
Strategic Planning - Observations topic
for All Seasons of a strategy - Master
reformulation theses were
process written by
in the seven
Norwegian students on
Mapping strategic
Authority management
- Interviews with issues in
7 master’s 2013
degree students
in same domain

Christoph, Strategic -Case study Departmental -Presentation -exploratory


et.al management in the -intervention Fire and - the decision- and
(2015) public sector: a research- Rescue Service making tool descriptive
rational, political or, type of France for the case approach
collaborative study
approach.
Richard, Strategic -Case study - The US- - Miles and -multiple
M. W. Management and - a mixture based public Snow regression
(2013) Performance in of organizations framework equations
Public qualitative - secondary - structural
Organizations: and sources of data equation
Findings from the quantitative on the research models
Miles and Snow topic
Framework.

Basel, S. Evaluating the -A -Dubai public - survey -Survey


(2011) effectiveness of quantitative sector’ questionnaire
Strategic Planning approach for - secondary
within the Middle survey-based sources of data
Eastern public sector research on the research
topic

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Int. J. Adv. Multidiscip. Res. (2022). 9(2): 88-104

Murat, Ö. An application of -Hypothesis - - Survey - a mailed


(2010) Strategic testing with Administrators, questionnaire survey
Management to the one heads or -Government - The
public sector: what dependent directors of 93 websites ordinary least
accounts for variable and types of -The state squared
reinventing nine agencies in the book for (OLS)
government independent 50 states. revenue multiple
strategies across the variables -The Book of recordings regression
United States? the States, and method
State
Rankings.
Hassan, Strategic A case study - Responses of - a structured - Binominal
et.al Management in the with a Top managers questionnaire test
(2010) Public Sector: mixture of of 70 public - Likert scale - Friedman
Reflections on Its quantitative organizations in ordinal Test
Applicability to and in Iran form -t-test
Iranian Public qualitative
Organizations approaches

3. Findings 1980)., Strategic negotiations (Pettigrew, 1973;


Allison, 1971)., logical incrementalism (Huxham
Many public SM scholars’ and practitioners’ & Vangen, 2005)., Strategic issues management
stating that the incorporating of strategic (Ackermann & Eden, 2011; Bryson, Cunningham
management from the private sector into the & Lokkesmoe, 2002; Nutt and Backoff, 1992).,
public sector is a difficult task, as private sector Stakeholder management (Ackermann & Eden,
theories are always influenced by the competitive 2011; Gomes, Liddle & Gomes. R, 2010; Walker,
advantage, profit, external and internal factors Andrews, Boyne, Meier & O’Toole, 2010;
while it's not suitable for SM in the public sector Freeman, 1984)., Strategic planning as a
which is to focus on output-oriented, internal framework for innovation (Ansell &Torfing,
efficiency and Management by Objective. 2014; Osborne & Brown, 2012; Bason, 2014;).,
(Elbanna, Rhys & Pollanen 2016; Weiss, 2016; Competitive forces analyses (Bryson, 2018;
Hansen & Ferlie, 2016; Ferlie &Ongaro, 2015; Höglund, Caicedo, Mårtensson&Svärdsten, 2018;
Höglund, 2015; Poister, 2010; Diefenbach, 2009; Hansen & Ferlie, 2016; Favoreu, Carassus,
Lane & Wallis, 2009; Lapsley, 2008; Bevan & Gardey, & Maurel, 2015; Porter, 1998)., and
Hood 2006; Hood & Peters, 2004; Ferlie,1996 Portfolio (John Bryson & Bert George, 2020).
Smith, 1995).
Also, Approaches for Public Strategic
At the same time, there are different theories and Management such as integrated units of
existing resources addressing SM in the public management approach (Poister, Aristigueta, &
sector (See Figure 3), that can be summarized in Hall, 2015; Van Dooren, 2015)., Strategic issues
studying approaches for the Public Strategic management approach (Behn, 1988)., Contract
Planning such as Harvard Policy Model (Bryson, approach (Sandfort & Moulton, 2015).,
2018; Innes & Booher, 2018; Gray & Purdy, Collaboration approach (Emerson & Nabatchi,
2018; Emerson & Nabatchi, 2015; Poister, 2015; Klijn, Steijn, & Edelenbos, 2010; Huxham
Edwards, & Pasha, 2013; Bingham, Nabatchi, & & Vangen, 2005)., Portfolio management
O'Leary, 2005; Nutt & Backoff, 1992; Bower, approach (Weick & Sutcliffe, 2015; Milward &
Bartlett, Christensen, & Pearson, 1991; Andrews, Provan, 2003)., Goal or benchmark approach

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(Bryson & Schively, 2017)., And Hybrid 114) and Agility model (Maatta, 2011; Doz &
approaches (John Bryson and Bert George, 2020; Koonen, 2008).
Bryson & Edwards, 2017).
And finally, the schools of thought on Strategy in
As well as, current models for SM in the Public the Public Sector such as Design, learning,
Sector such as Bryson's model (Bryson, 2011, p. cultural, political power, and environment schools
43-47), Mulgan's model ( Mulgan, 2009, p. 75- (Kaplan & Norton, 2008; Collier, Fishwick &
Jhonsen, 2001; Reich, 1988).

Figure 3. Conceptual framework for different theories and existing resources addressing SM in the public
sector

4. Summary of key findings practice, strategic management and strategic


planning are seemed to be characteristically
John, & Bert have presented and criticized hybrid. And also, they agreed with (George,
strategy, strategizing, strategic planning, and 2019; Bryson,2018 & Poister,2010) that the
strategic management as key elements of SM in research in SM and Strategic planning should be
the public sector recently in 2020 and for conducted in the sphere of which SM and
addressing organizational challenges and Strategic planning approaches are applicable in
achieving the important goals, these elements which situation, how it should be applied, and
recommended being useful. They have suggested why the specific approach been selected among
that although strategic planning and SM both other sets of approaches.
separately have their standard approaches in
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Int. J. Adv. Multidiscip. Res. (2022). 9(2): 88-104

When applying SM in practice in the public sector Likewise, Hakan has contributed to the SM body
using any tools, there are several specific and of knowledge by conducting an in-depth case
unique traits that create tensions and strains that study in 2016, at the ministerial level. He has tried
need to be addressed (Jarzabkowski, Lê, & Ven to study the issues and trials related to SM
2013; Williams & Lewis 2008; Jarzabkowski & practices, specifically while applying the strategic
Sillince 2007; Jarzabkowski & Fenton 2006). planning by doing empirical evidence and
Linda et al., have studied these tensions broadly theorized and emphasizing the variety of factors
in 2018 and raised awareness of specific tensions and mechanisms at the ministry level. He also
that potentially enable or constrain SM practice in argued strategic planning fails and becomes
the Public Sector. They have remarked that it ineffective in the public sector when there are
makes the strategizing process difficult if the strategy practitioners with weak deploying
operational plan is made in a short-term manner preparation, poor analytical, problem-solving, and
and has been emphasized that the holistic low social practice skills whiten the organizations.
perspective should always be preferred compared
to just more focusing on tools. And finally, they Earlier to the mentioned studies Age has studied
suggested that being proactive in the context of Strategic Management thinking and practice in
strategy work and the use of tools in the Public the public sector in 2015 and raised three main
Sector is essential rather than being reactive. issues to be addressed. The first issue he argued is
the reason why the schools of thought such as the
In addition to the above studies, Aithal has design school, the environmental school, the
studied critically the journal publications in planning school, the positioning or power school,
Strategic Management and the contribution of top the cognitive school, the learning school, and the
Indian Business schools from 2013 to 2018. He environmental school, are derived from non-
found that there is a lack of engorgement and public organizations could be adopted and
accountability maintenance for faculties to relevant to SM in public sector organizations.
contribute in terms of research and publications The second issue raised is that although planning
and suggested that strict policies should be is dominant in the public sector, the
adopted to address this issue. organizational environment due to contexts, tasks,
tiers, technologies, structures is unstable which
Furthermore, Ahmad and Fce have pointed out leads to a paradox. That is why good and bad
strategies implementation, leadership style, and strategies have been differentiated. And the third
organizational structure human resource issue discussed is that contrary to SM practices in
management, information, and control systems as the private sector, strategy practitioners in the
key issues and cases to be considered in strategic public sector based on their experience and
management practices in their study conducted in rationalism use and combine tools and practices
2018. Also, they claimed that this is SM which from two or more schools of thought as one
gives the organization success over their foes. strategic management package instead of being
restricted to just one school of thought theories
Similarly, Leskaj has studied the challenges faced and practices.
by the SM of public organizations in 2017 and for
addressing these challenges has summarized At the same time Lind and Fredrik, are conducted
specific suggestions such as the recruitment and one of the notable studies of SM in practice in
promotion of competent and motivated 2015, by paying attention to how really strategic
employees, investment in information technology management developed and practiced in the
systems, simplifying the financial structures, and public sector, how to identify the challenges as
most importantly the public organization like well to suggesting approaches to tackle these
many existences private sectors should be citizen- challenges. They argued that when the public
oriented not just govern-oriented. sector wants to implement SM, they become
intensively centralized that is why new public
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Int. J. Adv. Multidiscip. Res. (2022). 9(2): 88-104

management emerged and become focal to SM should be practiced in all small and large
consider this issue. Furthermore, the findings of public institutions.
this study suggested that financial concerns are
not the main essence of strategy but direction, Strategy, as well as a modern understanding of
goals, and purpose are the most important SM, must be communicated through the
bottlenecks that need to be considered in the organization to build support and create
public sector while practicing SM. ownership at the general and tactical levels. There
are tools such as multistep, goal-oriented
Additionally, Christophe, F, David, and approach, logical incrementalism, the strategic
Christophe, have argued in their published article triangle, stakeholder mapping, strategy maps, and
named in 2015, that there is no standard approach the adaptive matrix of Schedler and Siegel for
in SM practice in the public sector but practices public sector managers to communicate strategy
that are the combination and outcome of rational, and SM communication (Schedler & Siegel,
political, participatory logics and decision-making 2005; Kaplan & Norton 2004; Alford, 2001;
processes. They tried to study, analyze and Scholes, 1989). But Luke and Jonathan have
characterize the nature of the strategic process argued in 2010, that these tools are inadequate
comparatively to approaches that exist in the and more practical tools should be introduced,
literature and claimed that because of external following this, they introduced tactical mapping
validity and absence of generalized observations as a modern planning tool for SM communication
it is not possible to suggest a standard model out and strategy implementation. And they claimed
of a single study. that when successful tactics emerged it will carry
synergies, adapt structure, processes, and
Furthermore, Richard has studied SM in the competencies that might be helpful in strategy
public sector by using the findings from the miles implementation in the public sector.
and snow framework in 2013. He argues that
findings and practices of SM are drawn from local Prior to this Murat, in his article in 2010 has tried
government as well as limited data and to understand the reason why the public sector
geographic location which are mostly from the fails in implementing the SM at the macro level.
US and UK that have not fully been tested and He introduced the paradox where SM is most
examined the effects of performance and the needed in the public sector is less likely to work
potential for unobserved effects on Strategy. He and most likely to work where it is least needed,
claimed this gap could be addressed by extension in broader context public sectors should work on
to test these effects by the miles and snow creating capacity for successful SM practices,
framework. nevertheless specific features of public sectors
and implications of the rule of law should be
Likewise, Basel has studied SM practices in the carefully considered. Later on, he remarked
Middle Eastern public sector in 2011 and pointed shared power in the different levels of
out specific findings that include the top government, political environment, and public
management are the essential actors for the managers with less sovereignty and control as
successful practice of strategic planning. The three main reasons to adopt SM in the public
public organizations in the Middle Eastern mostly sector.
use SWOT and Benchmarking analysis tools
while they encourage using various strategic Meanwhile, Hassan et al., in 2010 have studied
planning tools. His study also found the mission comprehensively the application of Strategic
and vision should be communicated to all Management in the Iran Public Sector and its
stakeholders and considered all barriers, more reflections. They also support the idea of not
time should be spent in strategy implementation applying recklessly the private sector techniques
rather than strategy formulation, organizational and approaches in the public sector without
characteristics should be considered and finally, modifications as there is a major difference
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Int. J. Adv. Multidiscip. Res. (2022). 9(2): 88-104

between contexts of the public sector and the and link this fact in the public sector while
private sector. Political factors affect public practicing strategic management.
organizations more than other countries and they
emphasized that this is the main reason where After rapid changes and technology exploration in
long-term planning faces problems although the the 21st century, the role of Information and
implementation of SM is more related to these Communications Technologies as facilitators of
long-term views and plans. They pointed out the SM practices should not be neglected and need to
lack of alignment between meta-policy and macro study.
levels and considered public value as focal points
in SM application in the public sector. Furthermore, there is a need to study and analyze
the influence of key players taking into account
Earlier to all studies mentioned above Theodore the multi-stakeholder strategic networks while
and Gregory are the scholars that have conducted practicing SM.
one of an earlier study focused on Strategic
Management concepts, models, and processes in Linking the organizational performance and SM
the Public Sector. Although earlier to this Peter practices have been addressed well in western
and James are the prominent scholars who have countries but still not addressed within Asian
studied comparatively the SM in public and countries especially Middle Eastern and Central
private sectors in 1985. Asian countries contexts.

5. Future research opportunities Finally, a study and research are needed to


address which approaches and in which content
Very few studies have been conducted to address needed to be adopted in certain situations and
the tools needed to be used in strategic specific public sectors and how a mixture of SM
management practices, especially when it comes practices in the public sector in different aspects
to the public sector only Linda et al., in 2018, will work.
Hansen Rosenberg in 2011, and Williams and
lewis in 2008 have tried to address this gap. Concluding to this all researches and researchers
in the field of Strategic Management and Strategic
Further, this social mechanism in which strategic Planning in the public sectors have been
planning and strategic management apply, need to attempted to address and close some gaps while
be understood and studies should be conducted to opening and addressing other gaps to be
make sure how social mechanisms may pave the addressed into new areas in the public sector SM
way for SM practices. practices literature.

Moreover, the public sector can be a formal In sum, while considerable studies have been
organization or not a formal organization, there is conducted to know much about Strategic Planning
no research conducted to study the usefulness of and Strategic Management practices in the public
strategic planning and SM, to public sectors that sector, still there is much unknown to be extracted
are not formal organizations. And how strategic from what is known on this important topic and
management practices can help these field of study, and future scholars, strategists, and
organizations in strategic thinking, networks, practitioners of SM in the public sectors should be
cooperation, adoptions and communication motivated and supported to pursue studies
remains unanswered yet. considering different contexts on this broad topic.
Additionally, pointing the extensively use of
Add to this, the organization’s competencies, strategic planning and strategic management
capabilities, and aspirations can affect the practices in the public sector and more insight and
performance antecedents, processes, and enlighten on what approaches exactly works
outcomes. There is a need for researchers to study under the specific circumstances and to which
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Int. J. Adv. Multidiscip. Res. (2022). 9(2): 88-104

extent it will be useful for a public institution to Selecting a list of 15 most related papers among
endorse the SM practices for moving forward to the several published paper in the sphere of SM
the public purposes. practices in the public sector is the limitation of
this literature review.
6. Conclusion
Despite these limitations, the review of existing
This paper aimed to present a review of the literature and remarking future research
literature between 2010 and 2020 on the empirical opportunities are expected to contribute to the
studies that have focused on the formulation, development of future research on strategic
implementation, and evaluation of strategies management practices in the public sector.
within public sectors, which is, in general, the
review of the papers on strategic management 7. References
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Ahmad Jamshid Safi, Syed Mohd. Jamal Mahmood. (2022). Strategic Management Practices in the
Public Sector: A literature review – Descriptive. Int. J. Adv. Multidiscip. Res. 9(2): 88-104.
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