Effect of Strategic Behavior on Strategic Typology of Owners of the Ayurveda Firms in Sri Lanka

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