Organizational Performance: Strategic Persistence Versus Strategic Change

Abstract

The relationship of strategy to organizational performance has been of great interest to strategic management scholars. However, the relative contribution to organizational performance of the content of strategic decisions as opposed to the implementation of strategic decisions is not agreed upon in the literature. If it is primarily what strategy you select that leads to higher performance, then strategic change is good. On the other hand, if it is primarily how well you implement any given strategy that leads to higher performance, then strategic persistence is good. This study considers the relative contribution of strategic change versus strategic persistence as they relate to organizational performance in the banking industry.