Entrepreneurial strategy making and firm performance: tests of contingency and configurational models

Gregory G. Dess, G. T. Lumpkin and J. G. Covin

Strategic Management Journal, 1997, vol. 18, issue 9, 677-695

Abstract: This field study explores the nature of entrepreneurial strategy making (ESM) and its relationship with strategy, environment and performance. In the first phase, we assess the independence of entrepreneurially oriented strategy‐making processes through factor analysis. The second phase, using moderated hierarchical regression anlaysis, investigates the relative predictive power of two approaches for exploring the ESM–performance relationship: contingency and configuration. Findings from a sample of 32 firms competing in a wide variety of industries indicate that configurational approaches that align ESM, strategy, and environment have greater predictive power than contingency approaches. However, not all high performing configurations are consistent with normative theory. Thus, alternate theories linking entrepreneurial strategy making to competitive advantage should be developed and tested. © 1997 John Wiley & Sons, Ltd.

Date: 1997
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https://doi.org/10.1002/(SICI)1097-0266(199710)18:93.0.CO;2-Q

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