Measuring strategy coherence through patterns of strategic choices

  • Nath D
  • Sudharshan D
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Abstract

Strategies at different levels need to be coherent to ensure competitive advantage (Hoferand Schendel, 1978). Strategy coherence is the consistency of strategic choices across business and functional levels of strategy. In this paper we focus on strategy coherence. Using patterns of strategy, we develop a measure of the extent of strategy coherence. The relationship between coherence and performance is used to validate the measure. We illustrate the application of the measurement and validation process, in the context of acute care hospitals. The results indicate that our measure of coherence is monotonically related to performance. We also find performance differences between more and less coherent hospitals on the industry specific performance indicator of occupancy. Implications for theory and practice are highlighted. [ABSTRACT FROM AUTHOR] Copyright of Strategic Management Journal is the property of John Wiley & Sons, Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Author-supplied keywords

  • Strategy coherence
  • hospitals
  • strategic fit
  • strategic groups

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Authors

  • Deepika Nath

  • D. Sudharshan

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