Business Strategy and Financial Performance

Abstract

This chapter will focus on the relationship between the business strategy and the financial performance, which naturally, will study the different approaches to the competitive context and the strategic initiatives themselves. The contributions of different authors over time and the evolutionary logic of the approaches on business strategy are first, which will emphasize strategic positioning and resource-based theory. Next, several types of strategies will be approached, based on different views: product and market choices, sources of competitive advantages, the activities to be carried out internally or to be subcontracted and the geographic space of action (internationalization). Finally, a number of research papers will be presented that studied the relationships between business strategies and financial performance, mentioning the main empirical evidence from the different studies. In this way, it is intended to contribute to a better knowledge of successful strategies in the business context.