The Impact of Strategy And Structure On The Organizational Performance of Restaurant Firms

Abstract

There is an increased emphasis in the management literature on the use of strategic management as the primary means of adapting organizations to their changing environments. for firms in the maturing hospitality industry to survive and succeed, they will have to depend upon their ability to strategically align themselves with the turbulent environment and select appropriate strategies to create defendable competitive positions. Success in strategy implementation depends partly on a proper match between strategy and organizational structure and this match is expected to have a positive impact on financial performance. This study was conducted to explore the relationships among strategies of restaurant firms, their organizational structure and financial performance. The top management team in 296 American multi-unit restaurant firms were surveyed. Results regarding relationships posited among strategy, structure and performance are presented.