The Interactions of Business Environment, Generic Strategy, Operations Strategy, and Business Performance in the Lebanese Industries

Abstract

The purpose of the thesis is to investigate the interactions between business environment, generic strategy, operations strategy, and business performance in the Lebanese economy during the COVID-19 pandemic. The mediation effects of both generic and operations strategies between the business environment and business performance are examined. Drawing upon the theory of contingency, theory of strategic management, and resource-based view theory, a conceptual model was developed and empirically tested. The study was conducted by analyzing data collected via an online questionnaire from employees working in different Lebanese companies. Several statistical techniques were employed to conduct the data analysis phase of the study using the statistical software SPSS package and the add-in Hayes Process macro. The statistical techniques included reliability and validity analysis, factor analysis, correlation and regression analysis, hypothesis testing, and mediation analysis. The results confirmed the significance of the direct effects at the aggregate level. In addition, analysis at the sub-dimensions level revealed mixed results regarding the significance of the proposed relationships. Moreover, partial mediation effects were detected as the generic strategy was found to partially mediate the relationships between business environment and operations strategy and between business environment and business performance. This study can help investors, managers, and entrepreneurs observe the importance of both generic and operations strategies on increasing the firm’s performance in the presence of a changing business environment as generic strategy was found to have a stronger influence on business performance. This study adds to the existing literature by proposing and testing a conceptual model linking business environment, generic strategy, operations strategy, and business performance.