The investment-fit-performance triangle: the relationships between investment, strategic fit and performance in service organisations

Hill, Alex and Laker, Benjamin (2013) The investment-fit-performance triangle: the relationships between investment, strategic fit and performance in service organisations. In: 24th Annual Production and Operations Management Society (POMS) Conference: Integrating Practice in POM Research and Teaching; 3-6 May 2013, Denver, Colorado, U.S.. (Unpublished)

Abstract

This paper presents empirical research within eight strategic business units (SBUs) from six service organisations investigating the relationship between investment, strategic fit and business performance. The research found six significant relationships within the investment-fit-performance triangle. ‘Process investment’ seems to have the most significant impact on strategic fit and business performance of all the variables studied. ‘Environmental initiatives investment’ has a less significant impact on fit and performance, both investment in ‘people’ and ‘service/product development’ only have a limited impact on fit and no impact on performance.

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