Linking Strategy Processes To Performance Outcomes In Dynamic Environments: The Need To Target Multiple Bull's Eyes

摘要

We investigate the relationship between strategy processes and firm performance and the moderating role of environmental dynamism on these relationships. Multiple dimensions of strategy processes are drawn upon that look at the relative roles of the top management team and organizational members in the strategic process. Multiple dimensions of performance are also used that differentiate between financial, operational and organizational performance. The results indicate that distinct strategy processes influence different types of organizational performance. In general, there is support that the processes that draw upon the top management team are more likely to have a greater influence on operational and organizational performance. Additionally, processes that draw upon all employees are more likely to have a greater influence on organizational performance. There is evidence that dynamism positively moderates certain process-performance relationships that draw upon the top management team and negatively moderates certain process-performance relationships that draw upon all members of the organization. It seems that competing in the new competitive landscape requires that organizations not only invest in multiple strategic processes, but that they also target multiple performance "bull's eyes."