scholarly journals Firm Diversity Within Strategy Types: Substrategies And Performance Effects

2011 ◽  
Vol 5 (3) ◽  
pp. 66 ◽  
Author(s):  
Michael W. Lawless

Competitive strategy types are widely used to evaluate competitive advantage. The assumption is that member firms are extremely similar, even homogeneous. However, empirical evidence from group membership effects is mixed; it highlights a need for further refinement in strategy classification. This study relies on substrategies to group firms in the middle range between strategy types and individual firms. With data from 125 business units, we investigate variation in substrategies within strategy type and performance effects. Firms pursue different substrategies within competitive strategy types, but no individual substrategy produces superior performance.

2011 ◽  
Vol 49 (1) ◽  
pp. 139-155 ◽  
Author(s):  
John A. Parnell

PurposeThis paper aims to assess the influence of strategic capabilities on the business strategy‐performance relationship among retail businesses in Argentina, Peru, and the USA.Design/methodology/approachZahra and Covin's self‐reported scale was amended and utilized to categorize businesses along Porter's typology. Strategic capability scales were adopted from DeSarbo and associates. Self‐reporting scales to assess relative competitive and objective performance in the present study were adopted from Ramanujam and Venkatraman. A survey containing these scales was administered to 277 attendees at a retail trade show in the USA. The survey – translated into Spanish – was distributed by mail and completed by 136 retailers in Peru and 163 retailers in Argentina.FindingsLinks were assessed among strategic capabilities, generic business strategies, and performance in retail businesses in Argentina, Peru and the USA. Support was found for links between the focus strategy and both marketing and linking capabilities, between the differentiation strategy and technology capabilities, and between the cost leadership strategy and management capabilities. The low cost‐differentiation combination strategy was associated with high performance in strategic groups whose businesses possess strong management and technology capabilities. These findings highlight the importance of developing strategy‐specific capabilities as a foundation for superior performance.Research limitations/implicationsThis study relied on self‐reported assessments of competitive strategy, organizational capabilities, and performance. It utilized cluster analysis, assessed only retailers, and considered only three nations.Originality/valueExtant strategic group research highlights the link between group membership and firm performance. The present study reinforces previous research. In addition, the presence of organization‐specific strategic capabilities helps to explain why some businesses outperform others in the same strategic group.


2017 ◽  
Vol 3 (3) ◽  
pp. 1 ◽  
Author(s):  
Shigang Yan ◽  
Guozhi Liu

As an important participant in the international construction market, Chinese construction firms (CCFs) are confronted with the tasks of keeping themselves competitive. To help CCFs maintain and improve their competitiveness, this research builds a conceptual model to investigate the relationship between competitive strategy, market entry mode and performance within CCFs. Based on data collected from CCFs, this research has confirmed the importance of cost leadership strategy, differentiation strategy and business scope diversification, to achieve their superior performance. Moreover, there are positive relationships among entry mode strategies with CCFs’ international performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
I-Fan Yen ◽  
Hsin-Mei Lin

Purpose This paper aims to develop an integrated perspective on the relationship between multinationality and performance in the outward foreign direct investment (OFDI) of Chinese firms. The study not only represents contrasting OFDI patterns – namely, born global-natured multiple synchronous foreign investments versus conventional internationalization process (IP)-natured steady increasing foreign investments – but also contributes to understanding the extent to which explanations of home political influence need to be rooted within the general theory of multinationality. Design/methodology/approach By testing a comprehensive panel observation of 8,635 OFDI projects from 1991-2016 in China, this study found that multinationality with the new pattern of multiple synchronous OFDIs has a superior performance effect compared with the conventional pattern of steady increasing OFDIs. Findings This study also finds a positive relationship between multinationality (international diversification and home political influence) and the performance effect with the new pattern of multiple synchronous OFDIs, as well as a partial positive relationship between multinationality and the performance effect with the conventional pattern of steady increasing OFDIs. Research limitations/implications The study extends the understanding of the performance effects of Chinese multinational enterprises, which may benefit more from the new pattern of multiple synchronous OFDIs than from the conventional pattern of steady increasing OFDIs when the home-country institution is strongly positioned. Originality/value This paper concludes that multinationality needs an integrated framework that accounts for the new pattern of OFDI and the influence of diversification and home politics, particularly for the emerging country, China.


2021 ◽  
Vol 28 (3) ◽  
Author(s):  
Olívia Carolina de Resende Ribeiro ◽  
Pedro José Steiner Neto

Abstract: The objective of this work was to present the analysis instruments of Green Innovation that seek to relate it to Sustainable Competitive Advantage. Determining the research instruments through which we can analyze the relations between Organizational Capacity, Green Innovation, and Performance can enlighten us in what contributes with the levels of competitiveness of a specific industry, i.e., the sustainable competitive advantage. To do this, we focused on articles indexed in Thomson Reuters, ´Web of Science databank. We analyzed the articles have been most cited and which had presented scales for the analysis and understanding of Green Innovation instruments. We explored three of the most cited articles. These works address innovation from the perspective of Green Innovation and seek to analyze the superior performance of environmental innovations through specific scales. The studies in question adopt quantitative research approaches and operationalized through surveys. According to our analysis, the instruments can represent significant advances concerning the problem addressed in this study.


2016 ◽  
Vol 14 (3) ◽  
pp. 8-20 ◽  
Author(s):  
Arkadiusz Ral-Trebacz ◽  
Stefan Eckert

Recent empirical work suggests that the business operations of multinational companies are rather regional than global. The authors analyze the performance impact of intra-regional (as opposed to inter-regional) expansion among companies from six West European countries. Using multilevel modeling, the authors find that an increase in a firm’s degree of regionalization leads to superior performance. The results reveal that an inter-regional strategy does not seem to be a profitable expansion option. Moreover, while examining the moderating impact of firms’ FSAs on the link between intra-regional expansion and performance, the empirical findings suggest that marketing-related FSAs tend to be more regional-bound in nature and support the positive performance effect of intra-regional expansion


SINERGI ◽  
2019 ◽  
Vol 23 (3) ◽  
pp. 213
Author(s):  
Muji Indarwanto ◽  
Sarjono Puro ◽  
Edison H. Manurung

This study was aimed at examining the effect of competitive strategies and performance of construction organizations in the large construction industry in Indonesia. This study adopted a quantitative research approach using a questionnaire survey to obtain data from 260 senior managers and CEOs of enormous construction organizations in Indonesia. Using Partial Least Square (PLS), we examined the relations between the constructs discussed in the study. We found out that competitive strategies affected the performance of construction organizations; competitive strategies positively impacted on the organizational performance. These findings showed that we needed to harmonize a competitive strategy as a prerequisite to achieving superior performance. We believed that this study positively contributed to the role of competitive strategy and the performance of large construction organizations in Indonesia and ongoing discussions on issues arising in construction management in development.


2003 ◽  
Vol 7 (1) ◽  
pp. 79-87
Author(s):  
Shobha Ahuja

The objective of the paper is to ascertain whether foreign firms display superior performance in the marketplace as compared to Indian owned business units. The emphasis is on the branded product. The paper, on the basis of specified parameters, concludes that even with higher productivity, foreign firms are unable to secure a distinct niche in the market place. The reason is that the foreign firms have limited presence in some higher growth areas. However, MNCs can pose a challenge once FDI enters the country in a big way. To meet competition from the MNC, Indian firms need to emphasise on product innovation and adopt constant technological upgradation as an integral part of corporate planning. Besides, there is need to continuously rework on factors such as price and performance in order to enhance the brand appeal. It is also desirable to address social and cultural factors to draw the customer to the branded product. Above all, domestic companies need to be accorded a level playing field to compete with foreign firms on equal terms.


2018 ◽  
pp. 699-724
Author(s):  
Khaled Tamzini

By using the resource-based view as a theoretical framework, the purpose of this chapter is to explain the internal sources of competitiveness in Tunisian firms operating in the industry of Information Communication and Technology (ICT). In other words, how do firms within this industry build their competitive advantage and performance? Based on the results of the academic research undertaken in 2012 on a sample of 209 Tunisian ICT firms, the author explains how strategic tacit knowledge (seen as strategic resource) allows the firms to gain a sustainable competitive advantage and superior performance. In addition, it provides researchers with an empirical method to operationalize tacit knowledge appropriately, as well as competitive advantage and performance. It also focuses on the exploration of the relationship between these three variables, demonstrating that competitive advantage mediates the impact of tacit knowledge on performance. Finally, this chapter is considered an attempt to respond to criticism formulated against the resource-based view.


Author(s):  
Khaled Tamzini

By using the resource-based view as a theoretical framework, the purpose of this chapter is to explain the internal sources of competitiveness in Tunisian firms operating in the industry of Information Communication and Technology (ICT). In other words, how do firms within this industry build their competitive advantage and performance? Based on the results of the academic research undertaken in 2012 on a sample of 209 Tunisian ICT firms, the author explains how strategic tacit knowledge (seen as strategic resource) allows the firms to gain a sustainable competitive advantage and superior performance. In addition, it provides researchers with an empirical method to operationalize tacit knowledge appropriately, as well as competitive advantage and performance. It also focuses on the exploration of the relationship between these three variables, demonstrating that competitive advantage mediates the impact of tacit knowledge on performance. Finally, this chapter is considered an attempt to respond to criticism formulated against the resource-based view.


2021 ◽  
Vol 19 (2) ◽  
pp. 363-375
Author(s):  
Ratnawati Ratnawati ◽  
◽  
M. Taufiq Noor Rokhman ◽  
Yayuk Ngesti Rahayu ◽  
◽  
...  

The purpose of this study was to investigate competitive advantage as a mediator for the influence of managerial ability on the performance of SMEs in Malang City. The population of this research is the owners of SMEs in Malang, amounting to 113,000 units engaged in food processing, handicraft, and handicraft business units. Sampling in this study using the Slovin formula with a sampling error rate of 5% obtained a total sample of 100 SMEs. The sampling method is through a random procedure (random sampling). Data analysis using Structural Equation Modeling (SEM). The results showed that there is an effect of managerial ability on the performance of SMEs in Malang City and competitive advantage can mediate the effect of managerial ability on the performance of SMEs in Malang City. Future research can analyze the networking capability variables that contribute to the competitive advantage and performance of SMEs.


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