STRATEGY FORMULATION, STRATEGY CONTENT AND PERFORMANCE: EMPIRICAL EVIDENCE FROM PRIVATE SECTOR ORGANIZATIONS IN PAKISTAN

Shamil Nabi Khan, Muhammad Zeeshan Tahir, Sohail Zafar

Abstract


This study tests the effects of strategy formulation and strategy
content on the organizational performance by using the framework
suggested by Andrews, Boyne, Law and Walker (2009). The
independent variable strategy formulation includes rational
planning, logical instrumentalism and strategy process absence;
whereas the independent variable strategy content, following the
study of Miles and Snow (1978), includes prospecting, defending
and reacting. Three hundred and twenty five questionnaires were
distributed of which two hundred and seventeen were selected for
inclusion in the study. The sample drawn was from organizations
spread across Pakistan. The unit of analysis was departments as each
department has a different strategy. Results show that rational
planning affected positively while logical incrementalism and strategy
absence negatively affect organizational performance. While for
strategy content, prospector, defenders and reactors were found to be
positively significant with organizational performance. Implications
and future recommendations are provided.


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DOI: http://dx.doi.org/10.22555/pbr.v18i2.836

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