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Strategy, Strategy Making, and Performance---An Empirical Investigation

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  • Eli Segev

    (Faculty of Management, Tel-Aviv University, Ramat-Aviv, Tel-Aviv 69978, Israel)

Abstract

The purpose of this paper is to study the effect of the relationships between strategic type and strategy-making mode on organizational performance. Two important typologies were used in this study, one stressing strategic type, the other, strategy-making mode. Hypotheses were stated on strategy "fit" of specific strategy type with strategy-making modes, where strategic fit contributes to organizational performance. As part of a larger study of strategy formulation, the two top executives in each of 126 kibbutz-owned industrial enterprises evaluated their organization's strategic type as Defender. Prospector, Analyzer, or Reactor, and its strategy-making mode as Entrepreneurial, Adaptive and Planning. The executives typed their organizations using textual descriptions of strategies. The findings clearly indicate links between the two typologies, i.e., associations between strategic types and strategy-making modes, and that certain combinations are more conducive to enhancing organizational performance than others. When nonoptimal stragies are adopted they result in lower levels of performance. The paper also relates the primary discussion on the relationship between the strategy type and strategy-making mode typologies to the content-process dilemma on which it sheds some light.

Suggested Citation

  • Eli Segev, 1987. "Strategy, Strategy Making, and Performance---An Empirical Investigation," Management Science, INFORMS, vol. 33(2), pages 258-269, February.
    • Handle: RePEc:inm:ormnsc:v:33:y:1987:i:2:p:258-269
    DOI: 10.1287/mnsc.33.2.258
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    Citations

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    Cited by:

    1. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    2. John W. Boudreau, 2004. "50th Anniversary Article: Organizational Behavior, Strategy, Performance, and Design in Management Science," Management Science, INFORMS, vol. 50(11), pages 1463-1476, November.
    3. Frambach, R.T. & Prabhu, J.C. & Verhallen, T.M.M., 1998. "The influence of business strategy on market orientation and new product activity," Discussion Paper 1998-91, Tilburg University, Center for Economic Research.
    4. Frambach, R.T. & Prabhu, J.C. & Verhallen, T.M.M., 2003. "The influence of business strategy on new product activity : The role of market orientation," Other publications TiSEM 64c2e300-9f26-4178-ba34-2, Tilburg University, School of Economics and Management.
    5. Hasan, Syed Akif & Subhani, Muhammad Imtiaz, 2011. "Empirical Conclusion from the Managerial Perception for the Various Multi-Brands Strategies and their Implementations," MPRA Paper 34755, University Library of Munich, Germany.
    6. Belassi, W & Fadlalla, A, 1998. "An integrative framework for FMS diffusion," Omega, Elsevier, vol. 26(6), pages 699-713, December.
    7. Ana M. Moreno & José C. Casillas, 2008. "Entrepreneurial Orientation and Growth of SMEs: A Causal Model," Entrepreneurship Theory and Practice, , vol. 32(3), pages 507-528, May.
    8. Frambach, Ruud T. & Prabhu, Jaideep & Verhallen, Theo M.M., 2000. "The influence of business strategy on new product activity : the mediating role of market orientation," Serie Research Memoranda 0034, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    9. Grimmer, Louise & Grimmer, Martin & Mortimer, Gary, 2018. "The more things change the more they stay the same: A replicated study of small retail firm resources," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 54-63.
    10. Yuan Yuan & Louise Yi Lu & Gaoliang Tian & Yangxin Yu, 2020. "Business Strategy and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 162(2), pages 359-377, March.
    11. Verhallen, T.M.M. & Frambach, R.T. & Prabhu, J.C., 1998. "Strategy based segmentation of industrial markets," Other publications TiSEM 0ab50030-7566-4501-904b-8, Tilburg University, School of Economics and Management.
    12. Fleming, Damon M. & Chow, Chee W. & Chen, Gongmeng, 2009. "Strategy, performance-measurement systems, and performance: A study of Chinese firms," The International Journal of Accounting, Elsevier, vol. 44(3), pages 256-278, September.
    13. Charles R. Schwenk & Charles B. Shrader, 1993. "Effects of Formal Strategic Planning on Financial Performance in Small Firms: A Meta-Analysis," Entrepreneurship Theory and Practice, , vol. 17(3), pages 53-64, April.
    14. Frambach, R.T. & Prabhu, J.C. & Verhallen, T.M.M., 1998. "The influence of business strategy on market orientation and new product activity," Other publications TiSEM 0d7ebd65-ed06-4482-a6b8-e, Tilburg University, School of Economics and Management.

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