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Journal of Hospitality & Tourism Research, Vol. 23, No. 2, 118-138 (1999)
DOI: 10.1177/109634809902300202

Strategic Posture, Environmental Munificence, and Performance: An Empirical Study of Independent Restaurants

Giri Jogaratnam

Eastern Michigan University, gjogaratnam{at}online.emich.edu

Eliza C. Tse

Virginia Polytechnic Institute and State University, tseet{at}vt.edu

Michael D. Olsen

Virginia Polytechnic Institute and State University

Normative theory holds that strategy should favorably align organizations with their environments. The primary purpose of this study was to provide a test of the contingency effect that environmental munificence may have on the relationship between strategic posture and performance at the business-unit level. A nationwide sample of 311 independent restaurateurs, representing a 20.7% response rate, responded to a mail-out survey. Moderated regression analysis was used to assess the independent effects and the contingency relationships or interactions between the predictor (strategic posture) and the moderator (environmental munificence). The results suggest that both strategic posture and environmental munificence are significant independent predictors of performance. The moderating role of environmental munificence on the effect of strategic posture on performance was not established. However, the independent and additive effects of both strategic posture and environmental munificence were significant. Overall, munificence explains a greater proportion of the variance in performance than does strategic posture.

Key Words: strategic posture • environmental munificence • performance • restaurants


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[Abstract] [PDF]