Chapter 4 The Influence of Autonomous Strategy-making and Interactive Controls on Adaptive Corporate Performance

The dual importance of centrally induced strategic intent and the ability to engage in autonomous strategic initiatives has been demonstrated in both qualitative and quantitative empirical studies over the past decades. However, the particular mechanisms required to facilitate the interaction between these strategy-making approaches and achieve better corporate performance are less clear. The authors argue that the commonly conceived but rarely examined role of the strategic control process is essential to the implied adaptive performance dynamic. Although the strategic control typically is conceived as the diagnostic monitoring of outcomes, the authors contend that an interactive control (IC) mechanism is conducive to superior performance outcomes. To examine this, the authors use the extant strategy literature to generate the basic hypothesized relationships and conduct an empirical study based on a large corporate sample to uncover the intricate strategy-making model. The analyses show that adherence to ICs is an essential mediator for the positive combined effects of strategic planning and autonomous strategy-making processes.