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Untangling the relationship between strategic consistency and organizational performance: An empirical analysis of moderator variables

Published online by Cambridge University Press:  29 November 2016

Chin-Shien Lin
Affiliation:
Department of Business Administration, College of Management, National Chung Hsing University, Taichung, Taiwan, ROC
Van Thac Dang*
Affiliation:
Business School, Shantou University, Shantou City, Guangdong, China
*
Corresponding author: wilsondang1005@gmail.com

Abstract

Researchers have advocated various perspectives on the relationship between strategic consistency and organizational performance. This inconclusive debate has created an inadequate theoretical foundation in strategic consistency literature. Therefore, the present study uses strategic planning, strategic change, upper echelons theory, and other literature as the theoretical foundation to empirically examine the moderating roles of organizational slack, environmental dynamism, and top management team attributes in the relationship between strategic consistency and organizational performance. Using 439 electronics companies in the Taiwanese stock market as sample data, the empirical results show that organizational slack, environmental dynamism, top management team tenure, and top management team tenure heterogeneity moderate the relationship between strategic consistency and organizational performance.

Type
Research Article
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2016 

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