Sources of strategic fit in high-tech firms

Abstract

This study analyses the concept of strategic fit as a factor explaining organisational performance. We propose that strategic fit should include aspects of environment perception as well as the gap between planning processes and strategic implementation. Studying the firm's capacity to reduce this gap, we identify various organisational capabilities and analyse their relationships. Through managers’ responses from a sample of firms in European high-technology sectors, we find sufficient empirical evidence to affirm that strategic fit facilitates improvement in organisational performance. We also observe that strategic flexibility, real options and organisational learning are sources of strategic fit. So-called learning organisations facilitate generation of options that give the organisation the strategic flexibility needed to achieve fit with the environment. Strategic flexibility is defined in both the adaptive and anticipative sense. Our article thus offers a new perspective to contribute to better understanding of strategic fit and its antecedents.