Vertical strategic alignment and public service performance

Abstract

We report the results of a study examining the effects of vertical strategic alignment (that is, the degree to which strategic stances are consistent across different organizational levels) on public service performance. Longitudinal multivariate analysis is undertaken on a panel of public organiza- tions over four years. We find that alignment on a prospecting strategy leads to better performance, but that no such effect is observed for a defending strategy. We also find that high levels of prospecting alignment produce stronger positive performance effects in centralized organizations and when environmental uncertainty is high. The implications of these findings for research and practice are considered in the conclusion.