The effects of strategic alignment and competitive priorities on operational performance: The role of cultural context

National culture could enhance or diminish the effectiveness of operational strategies and practices. In this study, we compare the effects of strategic alignment and competitive priorities on operational exploitation and exploration, across three cultural clusters. Our results show that the cultural characteristics of low power distance and high individualism enhance the efficacy of competitive priorities aimed at explorative performance outcomes, and cultures characterized by high power distance and low individualism strengthen the link between strategic alignment and exploitative performance. These findings suggest that different cultural characteristics can have significant impacts on the effectiveness of firm strategies at the local level. A practical implication of our study is that managers need to develop cultural literacy based on their facility locations.