Strategy and environment as determinants of performance: Evidence from the Japanese machine tool industry

Suresh Kotha and Anil Nair

Strategic Management Journal, 1995, vol. 16, issue 7, 497-518

Abstract: This study examines the roles played by the environment and realized strategies on firm‐level performance in the Japanese machine tool industry. We examine the effect of environment and strategy on performance using longitudinal data on a sample of 25 Japanese machine tool firms over the period 1979‐92. Our results indicate that both firm strategies and the environment play significant roles in influencing profitability and growth. More specifically, whereas both strategy and environmental variables are significantly related to firm profitability, only environmental variables are associated with firm growth. Additionally, in contrast to U.S. based studies, we find that capital expenditures and technological change are not negatively associated with profitability. Rather technological change has a positive impact on firm growth. We discuss the implications of these results for strategic management and provide suggestions for future research.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (40)

Downloads: (external link)
https://doi.org/10.1002/smj.4250160702

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:stratm:v:16:y:1995:i:7:p:497-518

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0143-2095

Access Statistics for this article

More articles in Strategic Management Journal from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().