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

Abstract

This study examines the role of strategic behavior in shaping strategic typologies among owners of Ayurveda firms in Sri Lanka, a context where these concepts remain relatively underexplored. Strategic behavior promotes strategic thinking and supports firms’ adaptation to environmental uncertainty by balancing internal and external factors. Acknowledging the influence of culturally specific conditions, the study investigates the validity of the relationship between strategic behavior and strategic typology within the traditional Sri Lankan framework. Data was collected from a large sample of small and medium-sized Ayurveda firms, and analyzed using reliability analysis, One Way Analysis of Variance (ANOVA), and Tukey HSD tests. Findings indicate that all three dimensions of strategic behavior—entrepreneurial, technological, and administrative—significantly influence strategic typologies. For the Defender typology, significant differences were found between entrepreneurial and technological behaviors, and between administrative and technological behaviors. In contrast, the Prospector typology showed significant differences between entrepreneurial and administrative behaviors, and between entrepreneurial and technological behaviors. Descriptive results reveal that Prospector firms exhibit the highest levels of strategic behavior, while Defenders show the lowest. The study recommends transforming traditional mindsets to enhance the competitiveness of Ayurveda firms against Western medical products.