Article Abstract:
The analytical foundations of strategy process research are examined and extended using social science constructs. In these perspectives, strategic management is seen as a process, as opposed to a state, of analyzing the fit between a firm's environment and its position and resources, and planning how to improve this fit for better organizational performance. However, there is a need to extend research in this field to topics beyond mere strategic decision-making and change to such themes as action, dynamism, time and development. Also, the schism between the content and process component of strategic research is counter-productive. Finally, the current research is guided by the following assumptions: embeddedness, temporal interconnectedness,context and action, holistic process and process linkages with outcomes.
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Article Abstract:
The performance of a subsidiary business unit (SBU) is directly linked to the nature of the corporate strategy adopted by the SBU. However, this link between performance and strategy is influenced by the type of relationship the SBU holds with the parent firm management. A study of 496 primary health care hospitals reveals that an SBU's performance is improved if SBU management concentrates on controlling the activities focused on the SBU's market level strategy. The study also indicates that SBU management should be discouraged from monitoring functions not directly relevant to the SBU's strategy.
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Article Abstract:
Research shows that the traditional financial paradigm is complemented by a corporate strategy perspective in explaining capital structure in large corporations. The hypothesis was derived from a combination of previous research, Rumelt's diversification categories and validated financial contextual variables. The capital structure choice may be explained by a managerial choice perspective.
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