nt of strategy by profit oriented organizations. In this context, it is hypothesized that prospector organizations (as defined by the Miles and Snow topology) will tend to use multiple competitive strategies (as defined by the Porter typology) to a greater extent than will either defender organizations or analyzer organizations (in each instance, as defined by the Miles and Snow typology). Reactor organizations (as defined by the Miles and Snow typology) are not included in the research, as, according to Miles and Snow (1978) such organizations may not be expected to follow any prescribed strategy.
The independent variable in the testing of the research hypothesis is the domain category of the Miles and Snow (1978) typology defender, prospector, or analyzer in which an organization is found. The dependent variable is the competitive strategy or combination of competitive strategies, as defined by the Porter (1980) typology, employed by an organization. Two control variables are also included in the testing of the research hypothesis. The first control variable is business type. For purposes of this research, participating organizations are classified as (1) manufacturing, (2) sales, or (3) service in type. The second control variable is a measure of environmental uncertainty.
Data for a sample of 97 profit oriented business organizations located in the State of Iowa are analyzed in the testing of the hypothesis. The distribution according to type manufacturing, sales, and service is approximately equal.
Data were analyzed through the application of analysis of variance procedures (ANOVA). Statistical significance was established at the p<.05 level.
Literature is reviewed relevant to the problem investigated. The findings of the literature review are presented in discussions related to formal strategic planning, and the links between strategic planning and organizational performance.
Formal strategic plannin...