ABSTRACT
An important issue in strategic management research has been to understand the contingent effects of strategy on organizational performance. Central to contingency theory is the assertion that an organization's pursuit of a strategy is dependent on certain contextual factors, and the most important determinant of organizational performance is the contingent fit between the chosen strategy and its contextual factors. Using the contingency approach, strategic management researchers have investigated how a variety of contingency factors interact with strategy to affect organizational performance. The prominent contingency factors that have been used include an organization's external environment, structure, size, technology and resources and capabilities (e.g., Grinyer, Al-Bazzaz and Yasai-Ardekani 1986; Miller 1988; Spanos and Lioukas 2001).
