A Study of Relationship between Strategic Control Style and Performance of Holding Companies Listed inTehran Stock Exchange

Strategic control is a vague subject itself, and has a more vagueness in multi-divisional and holding companies. Earlier researches have introduced formality and preciseness (Amount of Performance Evaluation Criteria) of the process of strategic control in HQ of Holding Companies. We tried to test correlation between these two dimensions and performance of holding companies listed in Tehran Stock Exchange. ROI and M2 were used to show the level of performance and a questionnaire was prepared to determine the strategic management style of each company. MANOVA Test showed no significant correlation between formality or preciseness and the performance. A combination of formality and preciseness that made four strategic control styles resulted in a significant correlation between performance and just formal with lower amount of performance criteria style. This correlation for other styles was insignificant. The main contribution of this study is to present an integrated model of strategic management so that the alignment of Strategic Formulation, Implementation and Control based on strategic referent points causes better performance level. Our findings completely Support this hypothesis.