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Purpose

– The purpose of this paper is to analyze the role of fit between the environment of a firm, its resources and strategies.

Design/methodology/approach

– The paper is based on secondary resources.

Findings

– Firms can carve opportunities out of an essentially unfavorable environment, either by nurturing resources or implementing innovative business models, thus negating the “fit” effect.

Originality/value

– This paper adds to the fit vs stretch literature.

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