This paper uses a configurational perspective to examine high perceived value differentiation strategies of agribusiness in Latin America. Relying on information collected through interviews and a ...survey conducted with 200 firms, we explore the elements of the differentiation strategies adopted by the firms in this empirical context. We apply fsQCA to uncover asymmetric, complex causality. The findings provide interesting insights for scholars and practitioners alike, illustrating the strategic initiatives that the surveyed firms pursue to obtain higher perceived value than their competitors.
In this study, the significance of using Porter's generic strategies in firms that operate in competitive environments is investigated. The aim is to indicate the effects of Porter's generic ...strategies (low-cost strategy, differentiation strategy, and focus strategy) on firm performance. The questionnaires of the study have been prepared, the responses have been obtained, and the econometric model is constructed to measure these relationships. Findings stemmed by data that were taken from 113 firms that operate in the Republic of Kosovo. t test, Pearson's correlation analysis, and multivariate regression analysis were used to provide testing of hypotheses. Econometric results suggest that pursuing differentiation strategy provides higher firm performance compared to two other Porter's generic strategies (low-cost strategy or focus strategy) that have a positive impact as well.
Porter's framework of generic strategies conceptualizes key elements of firms' strategic positions in their industry. Research on these generic strategies has been challenged by the complexity of ...capturing relations between generic strategies (i.e., cost leadership, differentiation, and focus) and their interdependencies with other strategic commitments for performance outcomes. We address these challenges by utilizing fuzzy set Qualitative Comparative Analysis (fsQCA) to explore the causal complexity underlying the links between generic strategies and firm performance. Specifically, we study combinations of firms' generic strategies and other strategy attributes as paths to high or low performance in the U.S. and Canadian airline industry. We find six equifinal configurations that are consistently linked to high performance and nine configurations that are consistently linked to the absence of high performance. Our findings shed light on the contingencies underlying performance consequences of generic strategies. Consequently they redirect theoretical debates on the links between generic strategies and firm performance as well as on the superiority of pure versus hybrid generic strategies towards relations of set-theoretic of necessity and sufficiency. Specifically, we show that having a generic strategy advantage is not sufficient for high performance but that it is a vital ingredient in recipes for success. Similarly, our findings suggest that a generic strategy disadvantage is not sufficient for low performance, but is a key ingredient in all paths to poor performance. We conclude with a discussion of our study's contributions to the literature, suggestions for future research, and implications for managerial practice.
Competitiveness has become one of the objectives of firms in today’s world especially in consumer goods sector. Every firm wants to have a reasonable share in the market to achieve specific firm ...goals which competitiveness is part of. To achieve this objective, consumers goods firms need to adopt appropriate strategies. Thus, the need to see how Porter generic strategies could drive competitiveness strength of Fast Moving Consumer Goods (FCMB) in Nigeria. The study employed survey research design and primary source of data collection via questionnaire as well as multiple sampling techniques (simple and stratified). Simple regression was utilized as data analytical tool and it was found that differentiation and focus strategies have significant effect on FMCGs firms competitiveness. The study concluded that generic strategies (differentiation and focus) are determinants for firms competitiveness in FMCGs sector. It was therefore recommended that FMCGs firms should continue to deploy differentiation and focus strategies to achieve their competitive objectives.
Organizational configurations are sets of firms that are similar in terms of important characteristics. This article is intended to help close three gaps in the literature on organizational ...configurations. First, the authors propose clear definitions that may facilitate progress in the literature. Second, they provide the first major review since 1993 of accomplishments and struggles within organizational configurations research. Third, they describe how the configurational approach to organizations can make greater contributions within its traditional domains of organization theory and strategic management and can be extended to inform areas such as human resource management, organizational behavior, ethics, entrepreneurship, and international business.
Tanzania’s northern circuit (Arusha and Kilimanjaro) has continued to be characterized by limited growth of firms’ in the tourism industry despite the initiatives made by government in stimulating ...both performance and growth of the industry. This paper was set out to investigate the influence of generic strategies (low-cost leadership, focus and differentiation) on performance of tourism firms in Tanzania’s northern circuit. Cross-sectional survey design was used in 40 tourism firms targeting a sample size of 120 respondents. However, only 100 participants making 83.3% of the valid questionnaires. The study employed explanatory sequential mixed method strategy, where questionnaires and interview guide were used to collect quantitative and qualitative data respectively. Quantitative data were analysed both descriptively and inferentially using SPSS while qualitative data were analysed thematically using content analysis. The study revealed that, the generic strategies positively influence by 62.8% the performance of tourism firms in the Tanzanian northern circuit while 37.2% is contributed by other factors which were not studied. The study concludes that, generic strategies influence performance of tourism firms; and further recommends that, tourism firms are required to implement generic strategies in order to improve their performance and search other factors which can influence the performance of tourism firms.
Research in strategy has identified and tried to explain four types of rents: monopolistic rents, efficiency rents, quasi rents, and Schumpeterian rents. Building on previous work on political and ...institutional strategies, we add a fifth type of rent: influence rents. Influence rents are the extra profits earned by a firm because the rules of the game (laws, regulations, and informal rules) are designed or changed to suit it. To aid the analysis of the relationship between institutional context and firm performance and to provide a structure to guide research, we develop a framework with five key components: (a) an identification of the five fundamental problems of a market economy, (b) a typology that describes the five different types of institutions that emerge to solve these problems, (c) the market-ordering mechanisms used by institutions to solve these problems, (d) the common causes of weak institutional performance, and (e) generic strategies used by firms to exploit these weaknesses of an institutional context to enhance firm performance. We highlight potential applications of the framework as well as an illustrative research agenda that can advance the development of theory to explain the emergence and persistence of influence rents.
PurposeInnovation ecosystem research has highlighted complementors as the critical force to determining focal firm innovation’s success in addition to the traditional value chain or supply chain ...perspective. However, literature is relatively scarce in terms of innovation ecosystem governance, especially, on how to manage various types of complementors. The purpose of this paper is to fill this theoretical gap by developing a typology of managing complementors from multiple case studies.Design/methodology/approachThis study conducted multiple case studies of three leading focal firms with ecosystem strategies to understand innovation ecosystem governance. Theoretical themes are inductively generated to reveal their success in managing complementors in their ecosystems.FindingsThe case analysis reveals four generic strategies to manage complementors. These strategies are contingent on the types of complementors and level of interdependence: focal firms tend to engage functional complementors and collaborate with infrastructural complementors when the level of interdependence is higher, and acquire functional complementors and nurture infrastructural complementors when the level of interdependence is lower.Practical implicationsFor practitioners, this study can improve their understanding on the mechanisms of innovation ecosystem governance, particularly interdependence between participants in an innovation ecosystem, and developing appropriate strategies to manage different types of complementors in innovation ecosystems.Originality/valueThis study contributes to innovation ecosystem literature by enriching the conceptualization of interdependence in innovation ecosystems and unpacking innovation ecosystem governance with the inductively developed holistic typology of strategies to manage complementors. Meanwhile, this study also suggests underlying mechanisms for how innovation ecosystem governance and, therefore, contributes to a systematic theory on understanding innovation ecosystem governance.
Many foreign firms are expected to enter China's growing construction market. The objectives are to: (i) identify the extent to which Porter's generic business strategies and practices are adopted by ...local Chinese architectural, engineering and construction firms (Chinese firms) and foreign firms offering construction-related consultancy services in China (foreign firms); (ii) investigate the extent to which Porter's generic strategies contribute to firms' competitiveness in China; and (iii) propose a business model framework for construction services in China. Using a structured questionnaire, data were collected via mail and face-to-face interviews. In total, 37 and 45 completed questionnaires were received from foreign and Chinese firms, respectively. Both foreign and Chinese firms adopt Porter's differentiation and focus strategies to a significant extent. Foreign firms emphasize value offerings that incorporate superior design, technology and quality significantly more than Chinese firms. The findings show that Porter's cost leadership and differentiation strategies are significantly correlated with firms' competitiveness, especially the practices relating to cutting suppliers' prices, reconfiguring the value chain, providing innovative services and offering comprehensive services. To help them succeed in China, it is recommended that foreign firms develop their business models based on the framework developed here.
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