Rapidly changing environmental factors in the cable industry in North America have challenged the traditional rules and practices that managers use for making business decisions. This has resulted in alignment difficulties between stated strategy and strategic action and can impact financial performance. This quantitative study examined seven specific environmental factors to determine the level of influence of involvement on financial performance in the cable industry in North America. The seven factors were (a) investor criteria, (b) senior management leadership, (c) research and development (R&D) intensity, (d) time to market capabilities, (e) competitive strategies, (f) skilled employees, and (g) cash flow. The research design for this study was a non-experimental quantitative descriptive research approach. Participants were identified as 738 contact names for 308 organizations listed in three major industry databases. A non-parametric analysis was used for this research study since standard regression analyses of the data violated linear relations. Categorical Regression using Optimal Scaling was used as well as Kolmogorov-Smirnov test statistics using Lilliefors Significance Correction to check for normality. The findings from the analyses resulted in four of the nine hypotheses being statistically significant, expressly the interaction effect of the seven environmental factors p = .019; R&D intensity scale p = .004; cash flow p = .014; and R&D intensity ratio p = .006. It was recommended that traditional methods for managing capital are likely not appropriate for this industry and more strategic focus is required on R&D expenditures and on aligning R&D investments with implementation. As well, mangers need to recognize the interaction effect of environmental factors when formulating strategy as the outcome must ensure that both sales revenue and R&D investment are continually increasing, which is difficult to achieve in such a competitive industry. The study was important as it provided additional insight for managers to consider when making decisions regarding allocation of human and financial resources in the highly competitive cable industry in North America. Future studies should expand to other environmental factors, break down more closely the influence of individual factors, and employ different measures of financial success, such as net profit.