Similar to previous adaptationist theories, the theory of punctuated change views
executives as key catalyzing and shaping agents for fundamental change, mediating the
dual pressures for stability and large-scale change. Tushman and Romanelli (1985)
hypothesize that high-performing organizations will reorient when environmental
demands dictate, while lower-performing organizations may reorient too often or not
enough, drawing connections between performance, executive decision-making and
organizational survival. This theory could lead to the hypothesis that effective strategic
management processes could help organizations assess and react to environmental
demands and improve their performance.