Impact of Strategy Fit on Organizational Performance with an Emphasis on the Moderating Role of Organizational Structure and the Intervening Role of Environmental Turbulence in Specialized Parent Companies

The purpose of this study is to investigate the impact of strategic fit, organizational structure and environmental turbulence on organizational performance in parent companies in Tehran. 

This research was causal in terms of nature. Regarding objectives, it was an applied study and its approach was qualitative. Survey method was used to collect data through 82 questionnaires from 41 parent companies. Both convergent and divergent content validities, as well as reliability of the questionnaires were confirmed. To analyze data, one-shot T-test, hierarchical regression and structural equation modeling (path analysis) were used in smart PLS software. 

The results of the structural equation modeling indicate that the performance of parent companies is at a relatively good level. Path Analysis, based on variance analysis, shows that organizational structure and strategic fit have a positive and significant effect on organizational performance. The results also show that organizational structure mediates within the relationship between strategic fit and organizational performance in a positive and significant way and environmental turbulence has a positive and significant effect on organizational performance through strategic fit. One of the innovations of this research is the use of the ‘Ashrigde Matrix’ in the analysis of management strategies that has not been used in Iran previously. 

According to the research findings, it can be concluded that performance improvement depends on strategic fit, which affects performance both directly and through organizational structure; therefore, it is suggested that parent companies follow appropriate strategies to establish it.