The Configurational Approach to Firm Strategy

The Configurational Approach to firm strategy suggests that a company’s success depends on how well its internal elements—like resources, skills, and organizational structure—fit together and align with its external environment. Instead of focusing on individual factors, this approach emphasizes the overall pattern or "configuration" of these elements. When everything is coherently aligned, the firm is more likely to achieve a competitive advantage. It views strategy as a dynamic setup where the right combination of internal and external factors creates a unique and effective business position.