Document Type

Article

Subject Area(s)

Business Administration

Abstract

This paper suggests that the consistency of strategic leadership decisions is relevant to the performance of a firm. An organization with consistency in decision making across six relevant marketing strategy variables (promotion, price, channels, products, markets, and technology) is described as exhibiting "purity-of-form". An empirical examination is performed in the financial services industry investigating the relationship of strategic consistency to both profitability and market share while controlling for the firm's environment, structure, and size.

The findings indicate that a consistent strategy may have a positive effect on share performance, with high-levels of strategic leadership observed in the better-performing group. The authors suggest that either (a) a "pure form" utilizing high levels of strategic leadership or (b) a "mixed" strategic leadership form is preferable in the financial services industry. No relationship is found between strategic consistency and profitability.

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