Based on the strategic contingency theory and the resource based view, this study analyzed relationships among business environment, competitive strategy and Organiztional Structure and the effects of their fit on firm Venture Business Performance. Hy...
Based on the strategic contingency theory and the resource based view, this study analyzed relationships among business environment, competitive strategy and Organiztional Structure and the effects of their fit on firm Venture Business Performance. Hypotheses were tested over a sample of 318 domestic companies in 52 different industries.
Empirical result of hypotheses without Venture Business Performance implications showed that, in accordance to the strategic contingency theory, business environment affected the firm's choice of competitive strategy; and in accordance to the resource based view, Organiztional Structure of the firm was closely related with the firm's choice of competitive strategy.
In order to test hypotheses involving Venture Business Performance implication, we divided firms in our sample into high-Venture Business Performance and low-Venture Business Performance groups, and investigated the differences in various fit scores business environment and competitive strategy; Organiztional Structure and competitive strategy; environment-strategy(external fit) and Organiztional Structure-strategy(internal fit); than low-Venture Business Performance groups.
Such empirical results suggest that, in accordance to the strategic contingency theory and the resource based view, the fit between business environment and competitive strategy; Organiztional Structure and competitive strategy; and the integrated fit among environment-strategy(external fit) and Organiztional Structure-strategy(internal fit), all have positive effects on firm Venture Business Performance.