Strategic Fit(ness)

A key assumption in the field of strategic management is that strategic fit or alignment of a firm’s internal strategy, structure, capabilities and resources with the external environment is beneficial and positively related to performance. As external environments have become more turbulent and unpredictable, the notion of fit embedded in equilibrium assumptions has evolved from strategic fit to dynamic strategic fit to strategic fitness to incorporate this increased complexity and uncertainty. Recent work reconceptualizes the firm, its context, the drivers and outcomes to allow more in-depth examination of the emergent dynamics underlying the relationship between fit(ness) and performance.