Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 2016 erstellt
Description:
Despite the advanced knowledge on the importance of organizational strategy, empirical research present mixed results on the effect of strategic orientation on organizational performances. To address this conundrum, we operationalize the Miles and Snow (1978, 2003) business strategy typology by constructing a strategy index and explore the relation between strategy type (defenders, analyzers, and prospectors) and firm performance. We show consistent superior performance of defenders against analyzers and prospectors. However, as market concentration increases, the performance advantage of defenders declines, suggesting a moderating role of product market competition in the strategy-performance link. Using import tariff reductions in the U.S. manufacturing industries between 1974 and 2005 as exogenous shocks to product market competition, we conduct a difference-in-difference test and document a significant shift in strategic orientations as market competitiveness increases. These findings highlight the dynamic nature of business strategy and the importance of aligning business strategy with its environments