Organizational performance in a regulated environment: The role of strategic orientation

This study explores the influence of governmental regulation on organizational strategies and performance outcomes. Drawing on literature in strategic management, we provide a longitudinal empirical analysis of viable strategies in the U.S. domestic airline industry during a 6‐year period (1965‐70) when it was regulated by the Civil Aeronautics Board. Results indicate that air carriers were indeed able to articulate coherent strategic postures despite regulatory constraints, and were thus able to influence profitability.