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Strategic schemas, strategic flexibility, and firm performance: the moderating role of industry clockspeed

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  • Sucheta Nadkarni
  • V. K. Narayanan

Abstract

We examine the moderating effect of industry clockspeed on the relationship between strategic schemas, strategic flexibility and firm performance. We employ two key properties of strategic schemas: complexity and focus. Using a sample of 225 firms from 14 industries, we show that the pattern of relationships among the theoretical constructs is different in fast‐ and slow‐clockspeed industries. The results suggest that complexity of strategic schemas promotes strategic flexibility and success in fast clockspeed industries, whereas focus of strategic schemas fosters strategic persistence, which is effective in slow‐clockspeed industries. Copyright © 2007 John Wiley & Sons, Ltd.

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  • Sucheta Nadkarni & V. K. Narayanan, 2007. "Strategic schemas, strategic flexibility, and firm performance: the moderating role of industry clockspeed," Strategic Management Journal, Wiley Blackwell, vol. 28(3), pages 243-270, March.
    • Handle: RePEc:bla:stratm:v:28:y:2007:i:3:p:243-270
    DOI: 10.1002/smj.576
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