A test of strategic orientation formation versus strategic orientation implementation: The influence of TMT functional diversity and inter-functional coordination

The authors argue that strategic orientation formation and strategic orientation implementation are different. The authors also assert that they require different levels of the same antecedents. More specifically, the proposed model posits that strategic orientation formation and implementation are a function of top management team's (TMT) functional diversity and interfunctional coordination. This two-stage model of strategic orientation suggests that on the one hand strategic orientation formation is about consensus making based on diverse views. Strategic orientation implementation underscores the significance of efficient and seamless operationalization of the strategic orientation formed in the first stage of the model. Data obtained from TMTs support our empirical results in that moderate to high TMT functional diversity and high inter-functional coordination are important in the strategic orientation formation stage while low to moderate TMT functional diversity and inter-functional coordination are critical in the implementation stage.