Corporate Strategic Action Portfolios and Firm Performance in the US Telecom Industry (1984-2004)

In this study I investigate how a firm's corporate strategic action portfolios, defined as bundles of key corporate strategic actions, relate to deregulatory and technological changes, and to firm performance. I hypothesize that frequency and variety of a firm's corporate strategic action portfolios increase when environmental changes take place in the marketplace. I also hypothesize that the nature of a firm's corporate strategic action portfolios will be different depending on whether the changes are due to deregulation or technology. After establishing the relationship between environmental changes and a firm's corporate strategic action portfolios, this study measures the relationship between a firm's corporate strategic action portfolios and firm performance. All else being equal, it is hypothesized that a firm with higher levels of frequency and variety on corporate strategic action portfolios will perform better. The US telecommunications service industry provides the empirical background for testing these hypotheses.