Strategy Structure Environment Linkage and Corporate Performance

Abstract

Since the classic study of Chandler (1962) many researchers have over the years tried to make attempts to explain and bring convergence on the understanding of the linkage among the variables and/or constructs of strategy, structure and environment. They have generally concluded that although they are closely linked their relationship remains complex and iterative and is not as easy as theory seem to suggest. This paper tries, in light of this complexity on the linkage among the variables existing to bring to light through using an in- depth review of literature a step by step exploration and synthesis of the causal relationship existent among these constructs. Out of examination of an exponential pool of literature we identify the context of each construct, build a relationship among each pair of variable, explore the impacts of the variables on firm performance and eventually draw suggestions that will be able to direct future research hoping to offer a route towards a complete and simpler understanding of the organizations. Finally, this paper purposes to bring a familiarization to the whole concept of configuration theory in management and strategy research by developing a definition centrality and periphery based on how the constructs of configuration are causally connected.