Strategy, strategy-making, and performance in a business game

Abstract

In a recent study, Segev (1987) examined the relationships among strategy, strategy-making, and performance, focusing on the connection between two important typologies: Miles and Snow's (1978) concept of strategic types and Mintzberg's (1973) concept of strategy-making modes. The findings of that study clearly indicated links between the two, and partially supported propositions asserting the effects of the strategy/stategy-making fit on organizational performance. In the current study a business game served as the vehicle for examining this tripartite relationship. The two typologies were applied to the firms' in the game, and then an inquiry was made into the relationships between them. An hypothesis regarding the effect of fit on performance was tested, and the findings compared with previously reported empirical results.