Strategic Dynamics And Company Performance

Strategic dynamics refers to the dynamic change and evolution of enterprise strategy over time,which is manifested in different strategic situations of enterprises at different stages of development.Many scholars have discussed strategic dynamics from different perspectives,but the relationship between strategic dynamics and corporate performance has not been widely concerned.Based on Raymond-Alain's method of strategic dynamic analysis,this paper chooses ZTE,Apple,Nokia and Alcatel as the research objects,encodes the strategic activity of the company from 1999 to 2016 into a timeseries based on the frequency of strategic events.It divides the timeseries into strategic substages by the method of structural breakpoint detection.For each substage of strategic activities,the autoregressive moving average model(ARMA)is established by using time series analysis method,and the residual error of fitting model in each stage is analyzed in depth.Then,different strategic situations of different stages are observed.On this basis,this paper takes corporate performance as a result variable and discusses the relationship between strategic dynamics and corporate performance,in order to find under which strategic situation enterprises have better business performance.At the same time,this paper makes an in-depth analysis of the company's strategic behavior at different stages of development,studies the underlying causes of a specific strategic situation,thus guiding the formulation of enterprise strategy and helping enterprises search for the most favorable strategic behavior for the survival and development at different stages under different internal and external conditions.The paper constructs the relationship between strategic behavior,strategic dynamics and company performance.The research finds that the company has clear strategic objectives and development direction under the stable state,and business scope is relatively centralized.In this situation the company has better business performance,competitive advantage and innovation performance.