The Role of the Competitive Environment in Studies of Strategic Alignment: A Meta-Analysis

Abstract

Numerous studies in operations management have investigated alignment between business and functional level strategies. In spite of the considerable amount of research that has been conducted, little consensus exists regarding how the competitive environment affects the relationship between strategic alignment and organisational performance. In this study, we build on prior operations management research that has examined alignment by examining whether the competitive environment mediates or moderates the relationship between alignment and performance. Using meta-analytic procedures, we find evidence that the competitive environment functions as a mediator in the relationship between strategic alignment and organisational performance. The implications of our study are that researchers should carefully consider how the competitive environment may affect their results in strategic alignment studies. Results from our study also suggest that the environment is a salient contributing factor to a firm's performance and that managers need to pay close attention to its competitive environment when make strategic and operational decisions.