Customizing competitive strategy to entry timing: Implications for firm performance in the pharmaceutical industry

PurposeThe purpose of this study is to analyze how the design of performance appraisal is influenced by the competitive strategy of the firm. Then, this paper examines if the alignment between appraisal and strategy impacts firm performance.Design/methodology/approachThe study sample includes 258 Spanish firms in the manufacturing and services sectors. This information was gathered through questionnaires addressed to the CEO and the senior human resources manager. Several econometric models are estimated, using robust regression analysis and including a set of relevant control variables.FindingsA positive relationship is found between an innovation strategy and developmental performance appraisal. A cost strategy has a negative impact on the adoption of developmental performance appraisal. The findings also confirm that firms with a quality strategy and developmental appraisal have higher performance. In addition, firms adopting an innovation strategy and administrative appraisal enjoy higher return of equity.Research limitations/implicationsFuture research should analyze the dynamics of the relationships between appraisal, strategy and performance to rule out the flaws of cross-sectional data. Another potential extension is the analysis of the interactions of the design of other human resources management practices with both competitive strategy and firm performance.Practical implicationsFirms can improve performance by aligning performance appraisal design with strategy. Those with an innovation strategy should choose administrative appraisal, and those competing on quality should focus on developmental appraisal.Originality/valueThis paper compares the theoretical recommendations on performance appraisal for different competitive strategies, what firms actually do, and the impact that the alignment between appraisal and strategy has on firm performance.

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The moderating role of competitive strategy in relating firm performance to quality management and government support

Journal on Chain and Network Science ◽

10.3920/jcns2010.x105 ◽

2010 ◽

Vol 10 (1) ◽

pp. 59-76 ◽

Cited By ~ 1

Author(s):

Jiqin Han ◽

S.W.F. (Onno) Omta ◽

Jacques Trienekens ◽

Ron Kemp

Keyword(s):

Firm Performance ◽

Quality Management ◽

Competitive Strategy ◽

Process Management ◽

Management Practices ◽

Business Environment ◽

Government Support ◽

Supplier Quality Management ◽

Quality Design

One of the main concerns in companies is quality management and its relationship to firm performance. Recently a growing interest in research is the important role of the business environment in the competitive strategy choices of companies. By proposing a conceptual framework for a general model that explains the quality management practices-firm performance link and the business environment-firm performance link, we test the moderating role of competitive strategy in the two links empirically. A survey was conducted of 229 pork-processing firms in the emerging economy of China. We find that specific quality management practices contributing to higher performance include in-company quality management, supplier quality management, employee involvement in quality management and process management, while quality design and customer quality management are not included. Findings also indicate that the business environment (government support in our research) has a positive relationship to firm performance. Competitive strategy only strengthens the relationship between firm performance and quality design, process management, supplier quality management and customer quality management.

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