An Empirical Examination of the Performance Impact of Coalignment between Competitive Strategy and Environmental Uncertainty

Given a paucity of previous research empirically examining the performance impact of coalignment between competitive strategy and environmental uncertainty and lack of well-established measurement of environmental uncertainty, this study systematically investigated the performance consequences of aligning Miles and Snow strategic types with environmental uncertainty using a multidimensional entropy measure of perceived environmental uncertainty Moon (2005) developed. Using data on a sample of 50 subsidiaries belonging to US multinational manufacturing corporations, the results of analysis provided partial support for the proposed alignment hypotheses. The findings also indicated the general superiority of analyzers in performance over the other strategic types in the context of global competition. Future research implications for the results of this study were discussed.