This study examines firm technology strategy in Sri Lanka. Based on case studies of thirteen high-performing Sri Lankan firms and other empirical evidence, technology strategies of Sri Lankan firms are described and the causes for the observed strategies are investigated. The effects of external factors predicted by major organization theories are examined. A model of strategic progression is developed based on the planning, adaptive and entrepreneurial strategy formulation modes described by Henry Mintzberg. The "strategy strata" model unifies internal factors (e.g. competencies) and external issues such as environmental control and shows increasing benefits with progress through the strata.; Sri Lankan firm technology strategy is found to be closely related to firm business strategy. External factors originating in the firms' competitive environments (strategic factors) have strong effects on technology strategy. Non-strategic factors, including the government and society, do not significantly affect technology strategy. Sri Lankan firms display the characteristics of firms in the planning mode strategy stratum.; The case studies provide evidence of the predicted planning mode characteristics. Of particular interest is the existence of a strategic "ceiling" or limitation in strategic actions at the planning mode upper boundary. The literature provides evidence of similar boundary effects in the adaptive mode. The "strategy strata" model can be used to demonstrate a path of strategic development for firms in industrializing countries.
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