Revisiting the Miles and Snow Typology: Strategic Path Mediates Business Strategy and Resource Configuration for Innovation

Abstract

This article provides the results of an exploratory study that investigated the effect of Capabil- ity Lifecycle Path on attaining effective adaptation through innovation. Based on Miles and Snow (1978), an empirical study was conducted to explore whether performing firms are those that indi- cate consistency within the strategy, process, structure and Capability Lifecycle Path arrangement. The basic premise of this study is adaptability for sustainability, where firms go through adapta- tion cycles through Business Model Innovation would perform well when they are able to consis- tently create value and effectively manage adopted business models, or denoted as Business Mod- el Effectiveness. Using data obtained from seven Indonesian firms in various industries, PLS Analy- sis was conducted to investigate the relationships between Business Strategy, Firm Resource Con- figuration, Capability Lifecycle Path and Business Model Effectiveness. Findings indicated that Ca- pability Lifecycle Path, or decisions made on the development of capabilities at the mature stage, is an important part of the series of decisions made during adaptation to ensure performance.

Keywords

• Organizational configuration
• capability lifecycle
• business model innova- tion
• organizational adaptation.