The Effect of Strategic Flexibility on Strategy-Performance Nexus: A Conceptual Model

Abstract

Many of the business strategies adopted by organizations fail as a result of inflexibility of such strategies in responding to market dynamics. Although there is a considerable number of research to indicate that the strategic clarity has a strong positive association with firm performance, there remains little theoretical and empirical evidence to explain the effect of strategic flexibility on firm performance. Hence, this concept paper draws on the Porter’s typology and the Miles and Snow’s typology to analyze how the strategic flexibility moderates the association between strategic clarity and firm performance. The paper concludes with a conceptual model that enables the testing of the discrete effect of strategic flexibility on firm performance which in turn will add insights to the said models in the study.