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Choice and determinism: A test of Hrebiniak and Joyce's framework on strategy‐environment fit

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  • Michael W. Lawless
  • Linda K. Finch

Abstract

This paper describes the first empirical test of Hrebiniak and Joyce'S innovative model of business‐environment relations. Virtually all the literature prior to their Administrative Science Quarterly article (1985) assumes a zero‐sum relationship between managerial choice and environmental determinism. In the Hrebiniak and Joyce framework the two are orthogonal, and environments where management and environment are both weak or both powerful are possible. We first look for evidence of Hrebiniak and Joyce'S environment typology in 52 manufacturing industries previously specified by Dess and Beard (1984). Next, we test their propositions of strategy‐environment fit by classifying 146 firms into strategic groups, then evaluating each group in each environment. Our tests provide partial support for Hrebiniak and Joyce'S environment typology and for their contingent strategies. However, frequencies of firm location among the environments were highly skewed. These results suggest that strategy‐environment fit may not be as critical as market‐selection in the competitive success of firms.

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  • Michael W. Lawless & Linda K. Finch, 1989. "Choice and determinism: A test of Hrebiniak and Joyce's framework on strategy‐environment fit," Strategic Management Journal, Wiley Blackwell, vol. 10(4), pages 351-365, July.
    • Handle: RePEc:bla:stratm:v:10:y:1989:i:4:p:351-365
    DOI: 10.1002/smj.4250100405
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    Cited by:

    1. González-Cruz, Tomás & Clemente, Jose Antonio & Camisón-Haba, Sergio, 2018. "Which Factors Favour Becoming a Technology-Based & Highly Innovative Firm? The Role of Knowledge, Technological and Managerial Capabilities, and Entrepreneurs´ Education Background," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2018), Split, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Split, Croatia, 6-8 September 2018, pages 494-508, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    2. Frédéric Le Roy & Olivier Torrès, 2001. "La place de l'innovation dans les stratégies concurrentielles des P.M.E. internationales," Innovations, De Boeck Université, vol. 13(1), pages 43-60.

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