The Moderating Influence of Industry Competition on the Relationship between Corporate Strategy and Organizational Performance

Citation:
Bruce OJ, Joseph OO. "The Moderating Influence of Industry Competition on the Relationship between Corporate Strategy and Organizational Performance." International Journal of Research in Business Studies and Management. 2017;4(4):13-20.

Abstract:

The influence of strategic choice on performance is a subject of debate in strategic management. However,
previous studies have yielded inconsistent results. While industrial organization economics theory and the
contingency theory emphasize the role of industry environment in organizational performance, little
research attention has been directed towards investigating the indirect influence of the competitive
environment on performance. The current study, attempts to highlight the indirect influence of the
environment by testing the moderating influence of industry competition on the relationship between
corporate strategy and performance. The study adopted the descriptive cross sectional survey with data
collected from companies listed at the Nairobi Securities Exchange. Structured questionnaire was used and
data analyzed through both descriptive and inferential statistics and linear regression. The findings
demonstrate that industry competition has a significant moderating influence on the relationship between
corporate strategy and performance. Drawing from the findings, we conclude that performance of the firm
depends on the degree of alignment of corporate strategy to industry competition.

PreviewAttachmentSize
ogaga_and_owino_2017.pdf226.24 KB

UoN Websites Search