Business Intelligence

The Fit Of Business Relationships With Business Strategies

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Executive Summary

The concept of strategic fit has been a focus of the contemporary literature on organisational behaviour and strategy. This concept follows the logic of contingency theory and suggests that where business strategy is aligned with organizational structures; such a Gestalt provides the greatest contribution to firm performance. In this paper, the authors apply the concept of strategic fit to the characteristics of inter-firm relationships. A coalignment perspective invokes a configurational view on strategy vis-a-vis relationship characteristics by which they are able to explain how firms with different business strategies adopt and implement alternative relationship strategies in dealing with their counterparts, and how the interplay between business strategy and relationship strategy leads to firm performance as well as relationship performance.

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