Strategic alignment: A missing link in the relationship between strategic consensus and organizational performance

Abstract

Despite the increasing sophistication of the literature on strategic consensus and the compelling arguments linking it to organizational performance, empirical research has produced mixed findings. To address this conundrum, we examine the contingent role of strategic alignment—that is, to what extent decision makers place importance on strategic priorities that are responsive to, or fit, the demands of the external environment faced by the organization—as a salient missing link. Our findings from a sample of 349 university faculty members in 63 academic departments suggest that the consensus–performance relationship is stronger for lower levels of strategic alignment, whereas at higher levels of alignment, consensus appears to have little effect. Our discussion traces implications of these findings for existing theory and future research.