What type of firms typically use the adaptive mode in strategic management?

The adaptive mode in strategic management is often characterized by a flexible and responsive approach to strategy formulation and implementation. This mode is suitable for medium-sized firms because they generally possess enough resources and capabilities to be able to experiment with different strategies, yet they are still close enough to the operational aspects of the business to respond quickly to changes in their environment.

Medium-sized firms often face a dynamic market where consumer preferences and competitive forces can shift rapidly. This necessitates a flexible strategy that can be adjusted based on real-time feedback and changing conditions. The adaptive mode allows these firms to experiment, iterate, and evolve their strategies based on ongoing evaluation of performance and market trends, which is essential for maintaining competitive advantage in fluid markets.

On the other hand, large multinational corporations may rely more heavily on deliberate and planned modes of strategic management due to their size and complexity. Similarly, small, owner-run businesses may lack the layers of management and resources to implement a formal strategic framework, making their approach often more reactive than adaptive. Non-profit organizations, while they may also benefit from an adaptive approach, often have different operational structures and motivations that make them less representative of the adaptive mode's characteristics compared to medium-sized firms.