| Abstract: | In this paper an attempt is made to integrate the twin concepts of synergy and environmental uncertainty in a unifying framework for the analysis of corporate strategy in the large corporation. Environmental uncertainty and synergy considerations are considered to be the fundamental determinants in strategy formulation, the firm's strategy reflecting a choice between potential synergistic gains and increased vulnerability to environmental threats. A formal model of corporate strategy is developed explaining strategic behaviour as a function of opportunities for synergistic gains and level of environmental uncertainty. The empirical relevance of the model is demonstrated by utilizing data from four major studies of corporate strategy in the USA, the UK, France and West Germany. |
