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Firm performance and complementary strategy development processes

Norris White Gunby Jr (Love School of Business, Elon University, Elon, North Carolina, USA)

Management Decision

ISSN: 0025-1747

Article publication date: 22 May 2009

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Abstract

Purpose

This paper sets out to continue exploration of the process‐performance linkage by positing several relationships between a multidimensional operationalization of the strategy development process and firm performance, specifically identifying a strategy process configuration that is complementary to constrained environmental conditions.

Design/methodology/approach

Hypotheses and empirical results from a survey of practicing senior managers are presented.

Findings

The results infer that, in conjunction, the enforced choice and political strategy development process modes are superior to other strategy‐making archetypes in generating return on assets within constrained environments in for‐profit firms. No significant differences in firm performance were found for not‐for‐profit firms or for firms employing four other strategy development process modes prevalent in the current strategy process literature.

Practical implications

When assessing their strategic management process, organizations must give consideration to its qualitative nature. Senior managerial perception of the strategic management process has influence during strategy formulation and implementation and eventually on firm performance.

Originality/value

The paper builds on previous work, but highlights two new findings. Namely, a multidimensional operationalization of the strategy development process generates greater ROA than a one‐dimensional process and organizational performance in this configuration varies by firm profit status in some constrained organizational environments.

Keywords

Citation

White Gunby, N. (2009), "Firm performance and complementary strategy development processes", Management Decision, Vol. 47 No. 5, pp. 806-818. https://doi.org/10.1108/00251740910960132

Publisher

:

Emerald Group Publishing Limited

Copyright © 2009, Emerald Group Publishing Limited

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