Organizational Fit and Performance in Miles and Snow’s Configurational Theory: A Covariant Analysis

Miles and Snow’s (1978) model posits that organizational performance is dependent upon the degree of consistency (fit) that managers establish between organizational and environmental elements. However, different interpretations of the concept of fit coexist in the literature. We argue that in this model, consistency can be defined as a pattern of “equivalent covariance”, which is operatively created through the use of confirmatory factor analysis. The form of fit as covariance leads to the view of “configuration as quality”, in that the basic subject is the study of the interrelationships among organizational and environmental elements. The concept of fit as covariance is decidedly different from the traditional concept of fit as difference, which regards configuration as a typology or taxonomy. The covariance perspective of configurational theory is underused; for this reason, we apply this analytical perspective to a sample of 229 companies. The empirical results confirm that consistency positively influences organizational performance.