Strategy Formulation, Strategy Content and Performance

Abstract

This article tests the independent effects of strategy formulation and strategy content on organizational performance. The formulation variables include rational planning, logical instrumentalism and strategy process absence, and the strategy content variables are prospecting, defending and reacting, which are derived from the work of Miles and Snow (1978). The model, which also controls for past performance and service expenditure, is tested upon forty-seven service departments in Welsh local government. The statistical results indicate that logical incrementalism and strategy absence have negative consequences for performance while prospecting and defending are strategies that are likely to result in higher levels of organizational performance. The implications of these findings for public management research are considered.