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This study reports an examination of the relationships between Porter's 1980 generic strategies, dynamic environments, and performance. In me study, profile deviation is used to test strategyenvironment fit. A sample of 173 acute care hospitals was used to test the proposed relationship. Results from the study indicate that adherence to an externally specified ideal strategy profile has a positive effect on firm performance. From a methodological standpoint, results suggest that empirical and theoretical profiles have equal predictive validity, and both have a higher predictive validity, than a random profile. Results also suggest that profiles can not be assumed to be robust to differences in performance measures used.
The International Journal of Organizational Analysis – Emerald Publishing
Published: Feb 1, 1994
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