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Measuring strategy coherence through patterns of strategic choices

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  • Deepika Nath
  • D. Sudharshan

Abstract

Strategies at different levels need to be coherent to ensure competitive advantage (Hofer and Schendel, 1978). Strategy coherence is the consistency of strategic choices across business and functional levels of strategy. In this paper we focus on strategy coherence. Using patterns of strategy, we develop a measure of the extent of strategy coherence. The relationship between coherence and performance is used to validate the measure. We illustrate the application of the measurement and validation process, in the context of acute care hospitals. The results indicate that our measure of coherence is monotonically related to performance. We also find performance differences between more and less coherent hospitals on the industry specific performance indicator of occupancy. Implications for theory and practice are highlighted.

Suggested Citation

  • Deepika Nath & D. Sudharshan, 1994. "Measuring strategy coherence through patterns of strategic choices," Strategic Management Journal, Wiley Blackwell, vol. 15(1), pages 43-61, January.
    • Handle: RePEc:bla:stratm:v:15:y:1994:i:1:p:43-61
    DOI: 10.1002/smj.4250150104
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    1. Taylor Randall & Serguei Netessine & Nils Rudi, 2006. "An Empirical Examination of the Decision to Invest in Fulfillment Capabilities: A Study of Internet Retailers," Management Science, INFORMS, vol. 52(4), pages 567-580, April.
    2. Ioannis Oikonomou & Chris Brooks & Stephen Pavelin, 2014. "The Financial Effects of Uniform and Mixed Corporate Social Performance," Journal of Management Studies, Wiley Blackwell, vol. 51(6), pages 898-925, September.
    3. Nath, Deepika & Newell, Stephanie E., 1998. "Organizational responses to a hypercompetitive environment: A case study of Pepsi Canada," Journal of Business Research, Elsevier, vol. 41(1), pages 41-48, January.
    4. Carlo Bagnoli & Marco Vedovato, 2014. "The impact of knowledge management and strategy configuration coherence on SME performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(2), pages 615-647, May.
    5. Ghodbane Adel & Affes Habib, 2018. "Mediating Role of Entrepreneurial Orientation on the Relationship Between Relational Network and Competitive Advantages of Tunisian Contractors," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(2), pages 665-679, June.
    6. Ramírez-Hurtado, José M. & Quattrociocchi, Bernardino, 2018. "Multi-Sectoral Analysis of Strategic Groups in Franchising: A Study in Italy || Análisis multisectorial de grupos estratégicos en franquicias: un estudio en Italia," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 25(1), pages 318-334, Junio.
    7. Byung‐Jik Kim & Youngkyun Chang & Tae‐Hyun Kim, 2023. "Translating corporate social responsibility into financial performance: Exploring roles of work engagement and strategic coherence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2555-2573, September.
    8. Li, Ling & Benton, W. C., 2003. "Hospital capacity management decisions: Emphasis on cost control and quality enhancement," European Journal of Operational Research, Elsevier, vol. 146(3), pages 596-614, May.
    9. Taylor Randall & Karl Ulrich, 2001. "Product Variety, Supply Chain Structure, and Firm Performance: Analysis of the U.S. Bicycle Industry," Management Science, INFORMS, vol. 47(12), pages 1588-1604, December.
    10. Cheng-Ru Wu & Chin-Tsai Lin & Huang-Chu Chen, 2009. "Integrated environmental assessment of the location selection with fuzzy analytical network process," Quality & Quantity: International Journal of Methodology, Springer, vol. 43(3), pages 351-380, May.
    11. Guzman, Jorge & Li, Aishen, 2019. "Measuring Founding Strategy," SocArXiv 7cvge, Center for Open Science.
    12. Antonio Navarro García & Enrique Carlos Díez de Castro & Francisco Javier Rondán Cataluña, 2006. "Franchisor Types In Portuguese Franchising," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 97-114.
    13. Sheth, Ananya & Sinfield, Joseph V., 2022. "An analytical framework to compare innovation strategies and identify simple rules," Technovation, Elsevier, vol. 115(C).
    14. Venus Lun, Y.H. & Lai, Kee-hung & Wong, Christina W.Y. & Cheng, T.C.E., 2015. "Greening propensity and performance implications for logistics service providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 74(C), pages 50-62.
    15. Andrea Fosfuri & Marco S. Giarratana & Esther Roca, 2015. "Walking a slippery line: Investments in social values and product longevity," Strategic Management Journal, Wiley Blackwell, vol. 36(11), pages 1750-1760, November.

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