The extant literature has challenged the original idea that pure strategy leads to superior performance. This shift has raised the question whether pure strategy is still superior…
Abstract
Purpose
The extant literature has challenged the original idea that pure strategy leads to superior performance. This shift has raised the question whether pure strategy is still superior to hybrid strategy? The purpose of this paper is to investigate the strategy-performance relationship in this context and the performance of pure, hybrid, and reactor strategies is compared.
Design/methodology/approach
Scoring method is used for identification of strategic types. ANOVA, univariate, and multivariate regression models are applied for empirical analysis using seven-year financial data of 307 Pakistani joint stock firms from 12 industries.
Findings
The results show that firms in Pakistan practice hybrid and reactor strategies rather than pure strategies. Overall, defending and analyzing strategies perform better than the prospecting strategies. However, the performance of the strategic types varies among industries and firm size. Strategy and firm size are the better predictors of firm performance.
Originality/value
The proposed methodology can be replicated to identify strategic groups and strategic orientations proposed by typological classifications when longitudinal studies are carried out. The process for identification of pure, hybrid, flexible, consistent, and reactor strategies is a key contribution to the literature.
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Wahyu Apriyantopo, Atik Aprianingsih and Mandra Lazuardi Kitri
State-owned enterprises’ (SOEs) goals are perceived as two-sided blades, providing goods or services to the public on one side and escalating the government’s wealth on the other…
Abstract
Purpose
State-owned enterprises’ (SOEs) goals are perceived as two-sided blades, providing goods or services to the public on one side and escalating the government’s wealth on the other side. Treating the SOEs, government encounters the problem of injection strategy or privatize them. At the same time, managers have the option to formulate the SOEs strategy to boost performance. By using Miles and Snow’s typology strategy and the above factors, this paper investigates those impacts on Indonesia’s SOEs’ performance. This study aims to propose strategic typology as the main predictor with other variables such as the size, ownership structure, market competitiveness and capital subsidy on SOEs.
Design/methodology/approach
The study uses archived SOEs’ financial data from 2014 to 2018 to predict the financial performance using ordinal logistic regression analysis. The additional factors, such as firm size, ownership structure, market concentration and capital subsidy, are incorporated.
Findings
The result demonstrates that SOEs strategic typology, market concentration, size, ownership structure and capital subsidy significantly affect Indonesia’s SOEs’ performance.
Originality/value
To the best of the authors’ knowledge, this paper is the first elaborating government policies for SOEs, such as capital subsidy and state ownership, on the perspective of Miles and Snow’s strategy-performance relationship. Correspondingly, the paper contributes to examine the Indonesian characteristic SOE type with the performance. No single study has previously explored this relationship in the context of SOE in Indonesia.
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Jamil Anwar, S.A.F. Hasnu, Irfan Butt and Nisar Ahmed
The purpose of this paper is to find out the most influential journals, articles, authors and the subject areas where Miles and Snow typology is used. The study identifies the…
Abstract
Purpose
The purpose of this paper is to find out the most influential journals, articles, authors and the subject areas where Miles and Snow typology is used. The study identifies the opportunities for future research as well.
Design/methodology/approach
Review is based on 196 journal articles selected through a systematic and rigorous search process from the four databases: ProQuest, Business Source Complete, Willy and Science Direct. Total Citation, threshold citations, fractional citation and citation per year techniques are used for analyses.
Findings
Strategic Management Journal (SMJ), Academy of Management Journal (AMJ) and Journal of Marketing (JOM) are the most influential Journals. The most influential and prolific articles on the subject are from Hambrick (1983), Conant et al. (1990), Doty et al. (1993), Sabherwal et al. (2001), Desarbo et al. (2005) and Fiss (2011). Management, strategic management and marketing are the most studied subject areas.
Originality/value
Although there have been many reviews of the literature on this typology, the systematic review on Miles and Snow typology to find out the most influential journals, authors, articles and subject area has not been done before.
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Yan Tao, Hongyan Ke and Ziye Zhang
The paper examines whether the hybrid strategy can generate high performance and what hybrid strategy configurations are more conducive to high performance.
Abstract
Purpose
The paper examines whether the hybrid strategy can generate high performance and what hybrid strategy configurations are more conducive to high performance.
Design/methodology/approach
This paper explores the complex causal relationships between six strategic elements (marketing, growth, R&D, capital, efficiency, stability) and firm performance. From a configurational approach, the authors utilize necessary condition analysis, time-series qualitative comparative analysis, and typical case extraction techniques to analyze 944 balanced panel data from 118 Chinese ICT firms during 2013–2020.
Findings
Chinese ICT sector firms do not rely on pure strategies (prospector or defender) to achieve high performance. The hybrid strategy is conducive to high performance. Only specific hybrid strategy configurations, including stable growth, innovative efficiency, and two-way player types, could enable firms to perform well. Six strategic elements do not constitute a necessary condition for high performance.
Originality/value
This paper proposed an integrated qualitative comparative analysis scheme, proved the effectiveness of the hybrid strategy on firm performance, and revealed how hybrid strategy configurations generate high performance.
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Marc Eulerich, Anna Eulerich and Benjamin Fligge
This study examines the strategy–performance relationship within publicly traded German firms. Strategic management literature provides several strategic frameworks that offer…
Abstract
Purpose
This study examines the strategy–performance relationship within publicly traded German firms. Strategic management literature provides several strategic frameworks that offer guidance on promising strategies. However, given major changes, such as globalization, managers wonder whether strategic frameworks are still applicable.
Design/methodology/approach
The authors employ principal component analysis (PCA) to measure competitive strategy and analyze a sample of 6,037 firm-years among 651 firms between 2000 and 2019.
Findings
While the authors find evidence for the existence of efficiency-based strategies, differentiation-based strategies and mixed strategies, only differentiation-based strategies are positively related to performance.
Originality/value
The study’s results contribute to the discourse on the strategy–performance relationship, as they provide insights into promising strategies that are of interest to researchers and practitioners. Further, the authors introduce a new measure of competitive strategy based on PCA.
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Santiago Gutiérrez-Broncano, Mercedes Rubio-Andrés, Jorge Linuesa Langreo and Miguel Angel Sastre-Castillo
For this paper, the authors focus on Porter’s competitive advantage. Hybrid strategy refers to how a firm creates value vis-à-vis competitors by simultaneously relying on lower…
Abstract
Purpose
For this paper, the authors focus on Porter’s competitive advantage. Hybrid strategy refers to how a firm creates value vis-à-vis competitors by simultaneously relying on lower costs and greater differentiation to achieve a competitive advantage. This strategy emphasises both and aims to provide much more monetary value to customers through the combination of reduced cost and a higher rate of differentiation. In addition, this research focuses on family small and medium-sized enterprises (SMEs), because they have particularities arising from the incorporation of family members both as owners of the SME and in managerial positions. The porpose of this study is to analyse whether the existing differences produced by the role of the family in strategic decision-making and the concentration of family power have a higher impact on performance and innovation than non-family SMEs.
Design/methodology/approach
Structural equation modelling was used to analyse Spanish firms with fewer than 250 employees. This study randomly selected SMEs operating in Spain from the Spanish Central Business Directory (2021) database. The overall sample design was based on stratified sampling.
Findings
SMEs are facing new challenges, and this has led to the emergence of new competitive strategies. Companies have started to combine differentiation strategies with cost strategies to achieve superior performance and better adapt to these changes. This study confirms a positive relationship between the adoption of hybrid strategies and market performance in SMEs. In addition, hybrid strategy reinforces innovation, which has a mediating role between hybrid strategy and market performance. Finally, the findings indicate that family SMEs achieve a greater impact of hybrid strategy on innovation than non-family SMEs. Moreover, innovation plays a mediating role only in the case of family firms, which enhances the relationship between hybrid strategy and market performance.
Originality/value
For SMEs to survive in turbulent environments, this study proposes the adoption of hybrid strategies instead of pure strategies. The novel model links hybrid strategy (as opposed to “stuck in the middle”), innovation and market performance. The research is valuable for owners and managers of family SMEs because this study finds differences in the relationships studied compared to non-family SMEs.
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Marc Sollosy, Rebecca M. Guidice and K. Praveen Parboteeah
The purpose of this paper is to link firms’ strategic archetypes as formulated by Miles and Snow (1978) to the more recent literature on organizational ambidexterity. Examining…
Abstract
Purpose
The purpose of this paper is to link firms’ strategic archetypes as formulated by Miles and Snow (1978) to the more recent literature on organizational ambidexterity. Examining these obvious linkages, the paper also addresses how these firms address their entrepreneurial, engineering and administrative problem domains in relationship with the firm’s strategic archetype.
Design/methodology/approach
Data were collected from 503 firms across the US. Measures previously validated were used to collect information related to the strategic archetype as well as the three problem domains. Multiple discriminant and regression analyses were used to test the hypotheses.
Findings
Most of the hypotheses relating the entrepreneurial (exploration and exploitation), engineering (radical and incremental innovation) and administrative problem (adaptation and alignment) to the four strategic archetypes (defender, prospector, analyzer and reactor) were supported. Additionally, the authors found that the firms that had the closest alignment along the three problem domains outperformed the other firms.
Originality/value
Although the Miles and Snow typology has received considerable research attention, the obvious links with more contemporary research on organizational ambidexterity has been neglected. Through this integration, with more recent key strategic management concepts, this paper shows the utility and current relevance of the Miles and Snow archetypes.
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Md. Jahidur Rahman and Hongyi Liu
This study aims to examine the impact of intellectual capital (IC) and its three components (human, structural and relational capital) on corporation performance in the Chinese…
Abstract
Purpose
This study aims to examine the impact of intellectual capital (IC) and its three components (human, structural and relational capital) on corporation performance in the Chinese transportation industry. In addition, this study also investigates auditor characteristics (both Big-N and non-Big-N auditors) as a moderating role to examine the relationship between IC and corporate performance.
Design/methodology/approach
The data include 398 firm-year observations of transportation companies listed on the Shanghai and Shenzhen Stock Exchange from 2011 to 2020. Value-added intellectual coefficient (VAIC) model and its modified version (MVAIC) are applied to measure IC efficiency. Finally, the fixed effects regression analysis is used to mitigate the endogeneity issue. To investigate the moderating effect of auditor characteristics, the authors divide the samples based on the clients audited by Big-4 and non-Big-4 firms.
Findings
This study reveals that IC can enhance firm performance in China’s transportation sector. Overall, findings indicate that on the whole, IC has a positive and significant impact on corporation profitability and productivity. Human capital and physical and financial assets (capital employed) play highly important roles, but structural capital has no significant impact. The authors also found that auditor characteristics play an important moderating role in the connection between IC and corporate performance. For example, the positive association between IC and corporate performance is more pronounced when Big-4 auditors audit client firms. At the same time, the authors found a negative relationship between IC and firm performance when non-Big-4 auditors audit client firms.
Practical implications
Managers must understand that several components of IC have a total effect on corporate financial performance. Therefore, managers can dedicate more resources to such components based on the performance outcomes to emphasize their business strategies.
Originality/value
This study is the first empirical analysis of the impact of IC and its components on corporation performance in the transportation sector in China, an emerging market. Previous studies mainly focus on developed countries’ high technology and financial industries sectors but the impact of IC in transportation industry largely remains unknown. Thus, the present findings contribute to IC literature by revealing several underlying mechanisms by which the components of IC help achieve good firm performance.
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The purpose of this paper is to find out intentions of business graduating students regarding launching their own business, and their perception regarding issues and constraints…
Abstract
Purpose
The purpose of this paper is to find out intentions of business graduating students regarding launching their own business, and their perception regarding issues and constraints entrepreneur would encounter after entering into entrepreneurial activities. In addition, it focusses to provide a general understanding regarding entrepreneurship. The study also argues unfriendly policies and environment for entrepreneurship slows down poverty reduction and economic development.
Design/methodology/approach
For this research, data were collected through structured questionnaire. Population of this study comprised of all the MBA final semester students of Pakistan. Statistical techniques were used for analysis.
Findings
Research shows that most MBA graduating students actually plan to launch their own business, but perception about different issues and constraints refrain them to enter into the entrepreneurial field. The study also shows that policies of government and country’s environment effect entrepreneurship which further effects poverty reduction and economic development.
Originality/value
Different constraints are highlighted in the study due to which business graduates hesitate to become an entrepreneur, plus importance level of each constraint is also calculated in the study.
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Pratima Verma and R.R.K. Sharma
The purpose of this paper is to investigate the linkages among different employee benefits, business strategies and organizational cultures. The manufacturing and service sectors…
Abstract
Purpose
The purpose of this paper is to investigate the linkages among different employee benefits, business strategies and organizational cultures. The manufacturing and service sectors in the conglomerate industry are investigated.
Design/methodology/approach
Analysis of variance (ANOVA) are used for the statistical verification of the hypotheses, whereas Levene’s test and Wilk–Shapiro tests are conducted to verify the assumptions of ANOVA.
Findings
The results reported indicate that the social class benefits (SCB) and long-term benefits (LTB) are high in defenders as compared to prospectors and innovators, whereas group incentive schemes (GIS) are lower in the defender, and power distance and uncertainty avoidance are higher in the defender as compared to prospector and innovator.
Practical implications
This paper highlights that if mismatch among the employee benefits, strategy and culture occurs, then it becomes a hurdle to the good performance of organization and employee. The proposed model focuses on the effective coherence among the strategy, culture and benefits for leveraging the business processes. This research along with enriching the already existing literature would also act as a guidelines to practitioners implementing organizational change and development and to the academicians for extending the research in this area.
Originality/value
It has been established in the study that employee benefits (SCB, LTB, GIS and result-oriented benefits) are completely different for innovators, defenders and prospectors for conglomerate firms.