This paper sets out to continue exploration of the process‐performance linkage by positing several relationships between a multidimensional operationalization of the strategy development process and firm performance, specifically identifying a strategy process configuration that is complementary to constrained environmental conditions.
Hypotheses and empirical results from a survey of practicing senior managers are presented.
The results infer that, in conjunction, the enforced choice and political strategy development process modes are superior to other strategy‐making archetypes in generating return on assets within constrained environments in for‐profit firms. No significant differences in firm performance were found for not‐for‐profit firms or for firms employing four other strategy development process modes prevalent in the current strategy process literature.
When assessing their strategic management process, organizations must give consideration to its qualitative nature. Senior managerial perception of the strategic management process has influence during strategy formulation and implementation and eventually on firm performance.
The paper builds on previous work, but highlights two new findings. Namely, a multidimensional operationalization of the strategy development process generates greater ROA than a one‐dimensional process and organizational performance in this configuration varies by firm profit status in some constrained organizational environments.
