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Research Article

A Study on the Contingency-Fit Classification of Corporate Strategy Types of Korean Manufacturing Firms

Lim, Juncheol

Published: January 1997 · Vol. 26, No. 2 · pp. 427-451
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Abstract

This study, taking into account prior research literature and the strategic conditions of Korean manufacturing firms, classified four strategy types that firms can rationally adopt based on the degree of external environmental uncertainty and the degree of internal managerial innovation orientation. An empirical study was conducted on firms across diverse industries to confirm that these two dimensions—environmental uncertainty and innovation orientation—are significant variables influencing the strategy formulation of Korean manufacturing firms. The analysis results verified that firms of the four strategy types exhibited significant differences in specific corporate strategy dimensions, including new product development strategy, production strategy, promotion strategy, pricing strategy, and technology acquisition strategy. Furthermore, to verify the contingency-fit strategy types, a significant difference in performance variables was confirmed between firms whose characteristics matched the hypothesized profiles of the four strategy types established in this study and those that did not.