A broad study of the strategic group – performance relation: the movement of Spanish savings and loans across strategic groups

2004 ◽  
Vol 27 (11/12) ◽  
pp. 45-69 ◽  
Author(s):  
M Valle Santos Alvarez
1989 ◽  
Vol 15 (4) ◽  
pp. 649-661 ◽  
Author(s):  
Michael W. Lawless ◽  
Donald D. Bergh ◽  
William D. Wilsted

Because of inconsistent empirical evidence, the membership-performance model pervasive in strategic group analysis is re-examined. We propose that individualfirm capabilities, which reflect capacity to implement or change strategy, moderate the effect of members' shared strategy characteristics on performance. Controlling for market structure, we defined two strategic groups based on common strategy characteristics among 55 manufacturing firms. We found significant differences in performance and capabilities within each group. There was also evidence of a significant correlation between capabilities and performance within each group. We conclude that effects offirms' capabilities should be accountedfor to increase the explanatory power of strategic groups in competitive performance.


2020 ◽  
Vol 9 (3) ◽  
pp. 363-374
Author(s):  
Karl Yan

PurposeWhat are the mechanisms through which Chinese municipal leaders overcome implementation breakdown? This study, through process tracing, archival work and semi-structured interviews, examines the implementation of three sub-municipal-level railway projects involving the same principals and agents over the same period of time.Design/methodology/approachThe analysis was guided by the hypothesis that political coordination and the exercise of political and Party leadership played an indispensable role in the two cases of successful policy implementation, and its absence accounts for the case of implementation breakdown.FindingsThe principal finding is that an informal “strategic group” was created to “herd” cadres to overcome the problem of implementation. Herding here refers to the idea that Party leadership, through the use of moral persuasion, encourages cadres moving towards a desired common goal and direction.Research limitations/implicationsThis study is limited in the number of secondary resources (government documents and government and media releases) available to the field interviewees, which the author heavily relied on to complete the study.Originality/valueBuilding on the conceptual work of “strategic groups” by Thomas Heberer, Anna Ahlers, and Gunter Schubert, this study makes an empirical contribution by tracing the process through which an informal strategic group exercises its power to overcome implementation breakdown.


2014 ◽  
Vol 52 (10) ◽  
pp. 1858-1887 ◽  
Author(s):  
Xiao Duan ◽  
Zhan-ming Jin

Purpose – Strategic group has been intensively studied since this term emerged in 1970s, but previous studies have been limited to the comparisons between groups such as performance comparison. The purpose of this paper is to explore the internal structure of strategic groups by examining the effect of strategic distance from a firm to the center of its strategic group on firm performance. Design/methodology/approach – The research is based on data acquired from the annual reports of listed companies and some Chinese domestic databases, including CSMAR Solution, WIND financial database, and China Core Newspapers Full-text Database. After grouping listed pharmaceutical companies in China over the period 2010-2011, the authors test three hypotheses by using fixed effect regressions. Findings – The paper finds that the strategic distance from a firm to the center of its strategic group has a significant negative effect on the firm's financial performance. Two factors are discovered to influence that effect: corporate diversification strengthens the negative effect of strategic distance on performance, while firm's media visibility weakens that negative effect. Originality/value – The findings reveal the relationship between intra-group strategic positioning and firm performance, and specify how firms can gain competitive advantage through positioning choices and strategic actions. This study promotes the establishment of a more comprehensive strategic group theory by revealing the structure within strategic groups.


2014 ◽  
Vol 5 (2) ◽  
pp. 209-232
Author(s):  
Olawale Oladipo Adejuwon

Purpose – In order to achieve a desirable level of market efficiency, regulators need to identify the strategic groups within an industry and understand the way the constituent groups relate to one another. The paper aims to discuss these issues. Design/methodology/approach – In the current study, factors that may lead to strategic group formation were developed and used as clustering variables in a k-means cluster statistical analysis to categorize the firms into strategic groups. The factors used are entry costs, timing of entry, technology type and scope of operations. In addition, the number and type of competitive actions employed by the firms in the industry were identified by structured content analysis of a public source. The competitive actions were used to examine the dynamics of the resulting groups within the context of competitive behavior, resource and scope commitments and corporate social responsibility (CSR) actions. In addition, χ2 analysis was employed to ascertain the likelihood that actions of a firm will be responded to by firms from the same group or from outside the group. Findings – License fees was found to be the most significant clustering variable. The study also showed that groups with significantly higher license fees carried out considerably more competitive actions, had higher resource and scope commitments and executed more CSR actions. In addition, the study revealed significantly more competition within strategic groups than between groups. Research limitations/implications – The absence of financial records for firms in the sample necessitated the use of CSR activity as a measure of firm performance. Some empirical studies have shown strong links between CSR and firm performance. Practical implications – The study revealed high mobility barriers which prevent ease of movement of firms in the industry from one strategic group to the other. Therefore regulators who wish to promote competition must do so by identifying the strategic groups with significant market power and permitting entry not by lowering entry barriers but by allowing the entry of firms with proven resources similar to the firms in those groups and to stipulate similar commitments in entry conditions. The results also offer management practitioners an insight into competitive behavior in the industry. Originality/value – The study utilized a unique data set (competitive actions of firms in the Nigerian Telecommunications industry as reported in the media) in contributing to empirical studies on competitive dynamics and strategic group literature.


2020 ◽  
Vol 12 (3) ◽  
Author(s):  
Nelli Saveleva ◽  
Dmitry Losevich ◽  
Tatyana Shmeleva

One of the most responsible stages of the competitive analysis of the market of services is strategic segmentation of competitors in which course strategic groups of competitors come to light. In article the key barriers causing features of strategic grouping of competitors of sphere of sanatorium services of Krasnodar territory taking into account specificity of a segment of consumers, having problems with health («a medical segment») are allocated. Among the most significant barriers there was a departmental accessory, the organisation of the children's rest, used medical technologies (iatrotechnics, technology, shots), звездность, medical specialisation. On the basis of the revealed barriers ten strategic groups of competitors in the market of sanatorium services of Krasnodar territory, leaning against various sources of competitive advantages and key factors of success in competitive struggle, within the limits of a medical segment are isolated. Prominent features have strategic groups of children's sanatoria. Here as a defining barrier the barrier of strategic grouping «the organisation of children's rest» has acted. The special competitive status official bodies which managements owing to specificity are constrained enough in use of marketing toolkit, and also in manoeuvrability and flexibility of undertaken actions also have. It is allocated three strategic groups of competitors with participants – official bodies. The basic players of the market of sanatorium services of Krasnodar territory – the departmental and independent sanatorium organisations, are united in four strategic groups of competitors. Results of segmentation of competitors will allow the sanatorium organisations to define the strategic group on the basis of the revealed barriers of strategic grouping and can be used at formation of the competitive advantages allowing confidently to conduct competitive struggle among similar under strategic characteristics of the organisations. Segmentation of competitors also helps with more well-founded choice of competitive strategy.


2004 ◽  
Vol 178 ◽  
pp. 511-513 ◽  
Author(s):  
Regina Abrami

This volume, first published two years ago in Germany, is a welcome addition to the growing number of English language studies on entrepreneurship and private sector development in Vietnam and China. But, whereas other work aims to account for the operation, financing and development of this sector, Heberer's work has a narrower, if no less ambitious mission: to demonstrate that entrepreneurs are on the way “to replace the state as an agency of development and modernization” (p. 1).For Heberer, this process is an amalgam of various and often contradictory forces that find private entrepreneurs, intentionally or otherwise, driving substantive social and political change. For this reason, Heberer rejects a number of alternative labels that might be used to describe these actors, such as “class,” “interest group,” and “strata.” Instead, he argues that they are best regarded as a “strategic group,” a phrase meant to indicate the power of entrepreneurs not only as collective self-interested actors, but also as symbols of new values and beliefs (p. 69 and p. 341).


1998 ◽  
Vol 24 (4) ◽  
pp. 511-531 ◽  
Author(s):  
Ajay Mehra ◽  
Steven W. Floyd

This article blends the resource-based view of the firm with the industrial organization view of intraindustry heterogeneity to offer a theoretically grounded model of strategic group formation. The model provides an explanation for the inconsistent fkdings of empirical research on strategic groups and helps to situate future studies in this area.


2012 ◽  
Vol 12 (2) ◽  
pp. 167-179 ◽  
Author(s):  
Frans J.H.M. Verhees ◽  
Thomas Lans ◽  
Jos A.A.M. Verstegen

Farmers and horticultural growers are expected by society to increase production to meet the demand for food and other agricultural produce, and, simultaneously, reduce negative effects on the physical and social environment. Whether farmers and horticultural growers choose to develop their businesses this way, is not clear. A market orientation (MO) and entrepreneurial orientation (EO) of farmers and horticultural growers is propagated to increase farm profitability and stimulate the economic vigour of rural areas. An MO is a firm owners’ belief that the best way to achieve the firm's objectives is to satisfy customers more effective and efficient than competitors do. An EO is a firm owners’ willingness to innovate to rejuvenate market offerings, take risks to try out new and uncertain products, services and markets, and be more proactive than competitors towards new marketplace opportunities. However, it is not clear how MO and EO influence farmers’ and horticultural growers’ choices about how to develop their business. In this study a model is developed with hypotheses about the influence of EO and MO on strategic marketing choices of farmers. The model is tested on a sample of 588 Dutch farmers and horticultural growers. Four strategic groups were identified. A strategic group is a group of firms that have made similar choices about how to develop their business. Results show that higher levels of EO and MO are found in strategic groups that emphasise cooperating with buyers, increasing prices, and starting new activities. Lower levels of EO and MO are found in strategic groups that emphasize reducing costs and decreasing debts. EO and MO, however, have different influences on individual elements of strategy.


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