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Strategic schemas, strategic flexibility, and firm performance: the moderating role of industry clockspeed
Author(s) -
Nadkarni Sucheta,
Narayanan V. K.
Publication year - 2007
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.576
Subject(s) - flexibility (engineering) , strategic sourcing , industrial organization , business , strategic control , strategic management , strategic financial management , strategic thinking , strategic planning , focus (optics) , strategic alignment , strategic choice theory , sample (material) , marketing , management , economics , chromatography , optics , chemistry , physics
We examine the moderating effect of industry clockspeed on the relationship between strategic schemas, strategic flexibility and firm performance. We employ two key properties of strategic schemas: complexity and focus. Using a sample of 225 firms from 14 industries, we show that the pattern of relationships among the theoretical constructs is different in fast‐ and slow‐clockspeed industries. The results suggest that complexity of strategic schemas promotes strategic flexibility and success in fast clockspeed industries, whereas focus of strategic schemas fosters strategic persistence, which is effective in slow‐clockspeed industries. Copyright © 2007 John Wiley & Sons, Ltd.