The moderating influence of strategic orientation on the strategy formation capability–performance relationship

TLDR

Strategy formation capability is a dynamic organizational resource linked to superior performance, yet prior research has not integrated it with firms’ strategic orientation. The study develops a comprehensive model linking strategy formation capability to performance within the context of strategic orientation. The model is empirically examined to test how strategic orientation moderates these relationships. Results show that strategic orientation moderates the relationship between different elements of the strategy formation capability and performance. © 2006 John Wiley & Sons, Ltd.

Abstract

Abstract An effective strategy formation capability is a complex organizational resource—a dynamic capability that should lead to superior performance. Strategy scholars have examined the strategy formation capability from many perspectives. However, no study has examined a comprehensive model of strategy formation in the context of the firm's strategic orientation. We develop and examine such a model. The results show that strategic orientation moderates the relationship between different elements of the strategy formation capability and performance. Copyright © 2006 John Wiley & Sons, Ltd.