Abstract:
The role of strategic behavior is to promote strategic thinking and creativity to sustain the
business through continuous new product development and successful differentiation addressing
changing customer needs to maintain the competitive position of the firm. Strategic typology focuses on
the dynamic process of adjusting the firm to environmental changes and uncertainty considering the
trade-off between internal and external factors. Although there is a substantial amount of research
available generally on this issue, strategic behavior and typology are still relatively novel concepts in the
Sri Lankan setting where traditional and culture-specific conditions may contribute to the relationship
of these concepts. Hence, this study empirically investigates the concepts and their validity in the Sri
Lankan context. Therefore, the objective of this paper is to determine the effect of strategic behavior on
the strategic typology of owners of Ayurveda firms in Sri Lanka specifically at a strategic level with
appropriate holistic thinking, domain, and behavior. Using the survey method, data was collected from
a sample of small and medium-sized Ayurveda firms in Sri Lanka. Reliability analysis, multiple
regression models, and validity tests were performed to analyze the data. In relation to the effect of
strategic behavior on typology, entrepreneurial factors have influenced negatively on typology.
Administrative factors have a positive effect on typology. Technology is individually insignificant. In
relation to descriptive statistics, Defender comprises the minimum average for entrepreneurial,
technology, and administration. Analyzer is at the moderate level and Prospector is leading in
strategic behavior. It is suggested to change the traditional thinking pattern so that Sri Lankan
Ayurveda firms can compete in the market with western medical products. There is a huge demand for
herbal products in the current market hence the Ayurveda products that are user-friendly must
