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Organizational performance in a regulated environment: The role of strategic orientation
Author(s) -
Ramaswamy Kannan,
Thomas Anisya S.,
Litschert Robert J.
Publication year - 1994
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/smj.4250150105
Subject(s) - profitability index , business , strategic management , industrial organization , strategic planning , empirical research , organizational performance , marketing , management , economics , finance , philosophy , epistemology
This study explores the influence of governmental regulation on organizational strategies and performance outcomes. Drawing on literature in strategic management, we provide a longitudinal empirical analysis of viable strategies in the U.S. domestic airline industry during a 6‐year period (1965‐70) when it was regulated by the Civil Aeronautics Board. Results indicate that air carriers were indeed able to articulate coherent strategic postures despite regulatory constraints, and were thus able to influence profitability.