The impact of capital intensity and demand instability on strategy selection in tradition bound organizations

This study explores the impact of capital intensity and demand instability on strategy selection in a tradition bound industry. The application of these important structural dimensions are developed and applied to the use of entrepreneurial strategies in a non profit context. Specifically we test the influence of these two characteristics on the strategy selection utilizing a unique sample of 250 religious organizations. There are two components offered. First, these two components of managerial discretion contribute positively to entrepreneurial behavior. Second, entrepreneurial behavior is positively associated with performance in a religious context. The propositions are discussed and tested. The impact of discretion on strategy selection was mixed. Implications of these results and suggestions for future study are offered.