For decades, the strategic management literature has recognized strategic
orientation as an important cultural attribute in the investigation of the link between
organizational culture and firm performance. Using three studies, we develop a survey
measure of strategic orientation that is unidimensional, reliable, and predictive
of financial performance. Our final study uses a sample of 779 respondents from 20
companies and empirically demonstrates a positive relationship between strategic
orientation and firm performance. Our results support the notion that managers
should both encourage and support behaviors and execute actions that are consistent
with our measure of strategic orientation to create a coherent strategic approach,
resulting in improved financial performance.
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