Strategic Intent, Growth mode thrust, flexibility and linkages with firm performance: Evidence from India
The paper reports findings from a cross-sectional study of 601 Indian firms wherein the impact of strategic intent, organic growth mode – thrust and flexibility on firm performance is evaluated. The study is relevant in view of the strategic posture adopted by firms in a very competitive scenario. A conceptual framework was outlined based on a thorough study of literature. Subsequently, ordinary Least Squares regression approach was used to analyze data pertaining to the year 2017 for Indian firms. Results indicate that growth mode flexibility and organic growth mode thrust have a significant positive impact on market performance of firms. Hence, evidence from the paper indicates that strategic actions of firms are interpreted by markets positively. The findings underline the importance of strategic intent, organizational resources deployed across firm expansion efforts, innovation, the marketing efforts of firms and their influence on market performance. The study is amongst the few that have used content analysis to understand the ‘strategic intent’ conveyed as part of voluntary disclosure in the annual reports of firms.