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Entrepreneurial strategy making and firm performance: tests of contingency and configurational models
Author(s) -
Dess Gregory G.,
Lumpkin G. T.,
Covin J. G.
Publication year - 1997
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/(sici)1097-0266(199710)18:9<677::aid-smj905>3.0.co;2-q
Subject(s) - contingency theory , contingency , variety (cybernetics) , predictive power , independence (probability theory) , field (mathematics) , sample (material) , multilevel model , competitive advantage , strategic management , industrial organization , computer science , marketing , knowledge management , business , artificial intelligence , machine learning , mathematics , statistics , linguistics , philosophy , chemistry , epistemology , chromatography , pure mathematics
This field study explores the nature of entrepreneurial strategy making (ESM) and its relationship with strategy, environment and performance. In the first phase, we assess the independence of entrepreneurially oriented strategy‐making processes through factor analysis. The second phase, using moderated hierarchical regression anlaysis, investigates the relative predictive power of two approaches for exploring the ESM–performance relationship: contingency and configuration. Findings from a sample of 32 firms competing in a wide variety of industries indicate that configurational approaches that align ESM, strategy, and environment have greater predictive power than contingency approaches. However, not all high performing configurations are consistent with normative theory. Thus, alternate theories linking entrepreneurial strategy making to competitive advantage should be developed and tested. © 1997 John Wiley & Sons, Ltd.