Convergence versus strategic reorientation: The antecedents of fast-paced organizational change

We reexamine and extend the antecedents of strategic reorientation, a chang e in strategy combined with change in at least two of organization structur e, power distribution and control systems, presented by Lant, Milliken, and Batra (1992) by using archival data (1987-1993) for firms in the stable fu rniture and turbulent computer software industries. While enabling direct c omparability of results from the two studies, we specify an extended, integ rated model of change forces, and test the hypotheses with a more robust da ta analytic technique, hierarchical regression analysis. The results suppor t industry turbulence and CEO turnover as precursors to strategic reorienta tion, and suggest that industry turbulence conditions managers' external at tributions for negative financial performance in influencing strategic reor ientation. Alternatively, the results indicate that top management team tur nover is negatively related to strategic reorientation. The results do not support the Lant et al. (1992) conclusions that low past financial performa nce, top management team heterogeneity, awareness of environmental changes, and external attributions for negative financial performance outcomes are significantly associated with strategic reorientation Structural equation a nalysis indicated the predictive superiority of the respecified model, and we offer suggestions for theoretical refinement and development of strategi c reorientation. (C) 2000 Elsevier Science Inc. All rights reserved.