Business Strategy and Organizational Performance: Measures and Relationships

The relationship of strategy-performance linkages is central in strategic management research. A large number of empirical studies have applied strategic typologies distinguishing strategic types to investigate these linkages. Of the numerous strategic typologies, Miles and Snow’s framework has been one of the most scrutinized and validated strategy classifications. Although, there is a wide array of settings that provides a host of relationships for various business domains, no systematic review in the extant literature is available that summarizes the measures and the relationships used for operationalization of the strategy-performance linkages, especially when longitudinal financial data is used. The purpose of this study is, therefore, to provide an updated review of relevant literature to know the research designs, data collection and analysis methods, strategy and performance measures, and the findings for strategy-performance relationships. An empirical example by applying refined scoring methodology is also presented for identification of strategic types and their relationship with performance using seven years’ financial data from joint stock companies representing “cement and other minerals” sector of Pakistan.