Corporate Strategic Ability To Adapt And Performance

Strategic adaptation involves the ability of an organization to cope with new realities in its operating environment. This concept has been used to explain why some companies succeed, and others fail, or why some companies continue to succeed and sustain adventage, while other successful companies abruptly vanish. We confirmed two major research problems include: (1) why do some firms adapt better to environmental changes than do others? What factors account for their superior adaptation ability? (2) What is the relationship between strategic adaptation ability and firm performance?This paper focus on the rapidly changing information technology Industry to understand the questions listed above. Firstly, this paper systematically reviews the relevant literatures about strategic adaptation. Then this paper proposes the key impact factors of strategic adaptation based on the case study and literature review. Finaly, this paper adopts method of questionnaire research to investingate the relationship between two types of alignment and strategic adaptation, and the relationship between strategic adaptation and firm performance. We find out the following conclusions via empirical studies:(1) A model of impacting elements of strategic adaptation with second-order muli-dimentions. Along with the environmetal changes, the strategic adaptation ability is a dynamic process integrating the internal and external factors. Coporate leadership, strategic planning, human resources management, market strategy, technology innovation, strategic partnerships and corporate citizenship are the key impacting factors of strategic adaptation.(2) The relationship between two types of alignments and strategic adaptation. The interactive effects of internal and external alignments explain the most variance of strategic adaptation. We find that both internal and external alignments can't explain the variance of strategic adaptation individually.(3) The relationship between strategic adaptation and firm performance. The firm performance doesn't according to the level of strategic adaptation, but the fitness between the two dimensions of the strategic adaptation. Namely, the fitness between the organizational capacity and material capacity is the key impacting elements of firm performance.