The moderating influence of strategic orientation on the strategy formation capability-performance relationship

An effective strategy formation capability is a complex organizational resource-a dynamic capability that should lead to superior performance. Strategy scholars have examined the strategy formation capability from many perspectives. However, no study has examined a comprehensive model of strategy formation in the context of the firm's strategic orientation. We develop and examine such a model. The results show that strategic orientation moderates the relationship between different elements of the strategy formation capability and performance. Copyright (c) 2006 John Wiley & Sons, Ltd.