The literature suggests that the fit between corporate culture and strategy influences firm performance. The present study examines the moderating effect of diversification strategy on the link between corporate ideology, a component of culture, and firm performance. A cross-sectional survey of the largest manu facturing firms in the United States was conducted measuring corporate ideo logy and diversification strategy. A moderated regression analysis was con ducted and it was found that the interaction between ideology and diversification exerts a significant effect on firm performance thus supporting the importance of strategic fit.
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Goll et al. (1995) studied this question.
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