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How Strategy-Making Processes Can Make a Difference Export

Strategic Management Journal, Vol. 15, No. 4. (1994), pp. 251-269.

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Strategy-making is usually portrayed in dichotomous terms: rational vs. incremental, or formulation vs. implementation. It may, however, be more valid to think of organizations as entities capable of developing resources and skills in multiple strategy-making process modes. This paper first develops measures to identify firms with different levels and types of strategy-making process `capability' then examines empirically their relationships to five dimensions of perceived performance, using data collected from a sample of 285 top managers. Results indicate that firms with high process capability-the simultaneous use of multiple strategy-making process modes-outperform single-mode or less process-capable organizations.


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