An empirical research on the patterns and influencing factors of strategy formation processes

Abstract

Using data collected from 126 firms, this article attempts to classify different patterns of strategy formation process and identify organizational factors influencing the processes. Based on a clustering analysis method, we identify four patterns of strategy formation processes varying in main characteristics, such as command, adaptive, vision, and external constraints, etc. We also find that a firm’s ownership type and its development stage have significant effects on strategy formation processes.

Keywords

strategy / strategy formation / strategy formation processes / strategy-making / clustering analysis