Environmental And Structural Influences On The Strategy-Making Process Of Banks

Abstract

This study investigated the effects of perceived environmental dynamism, heterogeneity, and resource munificence, as well as two structural characteristicsformalization and centralizationon the strategy-making variables of assertiveness and rationality. Finding from 59 banks indicated that perceived environmental heterogeneity and munificence were both positively related to the assertiveness and rationality of strategy-making, whereas perceived dynamism was negatively related to rationality. Formalization, a structural variable, was found to contribute the most to strategy-making.