Critical competitive methods, generic strategies, and firm performance

Powers, Thomas L.; Hahn, William

doi:10.1108/02652320410514924

Cited by 70 publications

(62 citation statements)

References 41 publications

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“…This implies that by producing more attractive and more variaty of wooden furniture, and also by providing much better products and services, the of Porter's Generic Strategies to Gain Firm Performances [3], but are contrary to the findings of Powers & Hahn (2004) [22], and Leitner & Guildenberg (2010) [14].…”

Section: Hypotheses Testing Resultscontrasting

confidence: 52%

“…This implies that by selling their products to certain markets such as to consumers that prefer unique furniture design or to certain market group such as schools, universities, banks, hospitals, and other group markets, the owners can increase their financial and market performance. The findings of this study support the findings of Bordean et al (2011) [6], but are contrary to the findings of Powers & Hahn (2004) [22], and Nandakumar et al (2011) [16].…”

Section: Hypotheses Testing Resultscontrasting

confidence: 52%

“…Banker, Mashruwala, and Tripathy (2014) [4] found that both cost leadership and differentiations strategies impact on contemporaneous performance, but the differentiation strategy allows a firm to sustain its current performance in the future to a greater extent than a cost leadership strategy. In contrary, Powers and Hahn (2004) [22] found that in the banking industry it may be difficult to generate superior returns using a differentiation or focus strategy because banks that used competitive methods to pursue a broad differentiation, customer service differentiation, or focus strategy were unable to realize a performance advantage over banks that are stuck-in-the-middle.…”

Section: Generic Strategies and Company Performancesmentioning

confidence: 99%

See 2 more Smart Citations

Five Competitive Forces Model and the Implementation of Porter’s Generic Strategies to Gain Firm Performances

Omsa¹

2017

SJBM

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Five competitive forces that comprise bargaining power of buyers, bargaining power of suppliers, threat of new entrants, threat of substitute products or services, and intensity of rivalries have been studied by many researchers for several years. However, linking them with Porter's generic strategy in order to gain financial and market performance in the Micro, Small and Medium Enterprises (MSMEs) context is very rare. The main purpose of this study is to analyze how those five competitive forces affect generic strategies developed by Porter and how the generic strategies affect firm performances. Questionnaire, survey and deep interview were conducted to figure out the implemented generic strategies by the owners of MSMEs of wooden furniture in East Java, Indonesia. Smart partial least square (PLS) was used to analyse the data. The results show that power of buyers (PoB) significantly affects only differentiation strategy (DS), power of supplies (PoS) significantly affects cost leadership strategy (CLS) and focus strategy (FS) but does not significantly affect differentiation strategy (DS), and threat of rivalries (ToR) significantly affects differentiation strategy (DS) and focus strategy (FC). In regards to the relationship between generic strategies and firm performances (FP), the results of this study show that both DS and FS significantly affect FP, while CLS does not significantly affect FP. Based on these findings, it is suggested that the owners of MSMEs wooden furniture in East Java (Indonesia) consider PoB, PoS, and ToR before performing DS and FS to gain much greater firm performances in the future.

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Section: Hypotheses Testing Resultscontrasting

confidence: 52%

Section: Hypotheses Testing Resultscontrasting

confidence: 52%

Section: Generic Strategies and Company Performancesmentioning

confidence: 99%

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Five Competitive Forces Model and the Implementation of Porter’s Generic Strategies to Gain Firm Performances

Omsa¹

2017

SJBM

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“…Porter (1980) suggests that a company must focus on one of the two generic strategies if it hopes to gain above average returns. The findings of Dushyantha (2008), Allen and Helms (2006), Thomas andWilliam (2004), Power andHahn (2004) and Nayyar (1993) support the view that firms employing one of the generics strategies perform better than firms which employ the stuck -in -the middle strategy. This is because firms applying this strategy avoid customers who demand low cost products and also lose high margin products demanders, leading to lower market share.…”

Section: Generic Strategymentioning

confidence: 78%

Top Management Team Demographic Diversities, Generic Strategy and Firm Performance in Marketing Social Research Association (MSRA) in Kenya

Yohannes¹,

Ayako²

2016

AFA

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This study investigated the relationship between Top Management Team (TMT) demographic diversities and firm performance using generic strategies as intervening variable in the Marketing and Social Research Association (MSRA) firms in Kenya. First, the relationship between TMT characteristics diversities and generic strategy was analyzed. Second, the link between generic strategy and firm performance was estimated. Mixed methods research design was used to critically investigate the relationship between the latent exogenous and endogenous variables of this study. The mixed research design used in this study was triangulation design, which was mainly transformation design model. The data were analyzed using structural equation modeling analysis, using IBM SPSS AMOS version 21. The study found out that the homogenous demographic diversities among the top management team members had statistically significant effect on cost leadership strategy (p = 0.012). Besides, cost leadership strategy showed a statistically significant positive relationship on firm performance (p = 0.005). The findings of this study implied that organizations need to know and develop the best composition of top management team based on their demographic diversities in relation to the environment. Besides, the organizations need to empower the TMT members using monetary and nonmonetary incentives to further improve performance. Last but not least, the compositions of TMT in marketing research firms need to embrace gender diversity.

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“…Market-focused learning (Į=0,76) was measured via the 8-item scale developed by Weerawardena (2003), internally-focused learning (Į=0,92) was measured via an 8-item scale of an adapted version of measures developed by Atuahene-Gima (1993) and relationally-focused learning (Į=0,66) was measured via 8-items developed by Cohen and Levinthal (1990) and Rothwell (1992). To measure strategic choice, a literature review including Miller and Friesen (1986); Bush and Sinclair (1992); Yamin et al (1999); Panayides (2003); Powers and Hahn (2004) and Allen and Helms (2006) yielded a pool of items. The purification process generated a total of 22 items.…”

Section: Methodsmentioning

confidence: 99%

How do learning orientation and strategy yield innovativeness and superior firm performance?

Dülger

Alpay

Yılmaz

et al. 2014

SAJBM

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This paper attempts to shed light on the role of learning orientations of firms and their adoption of Porter's generic strategies on four dependent variables: Behavioral innovativeness, product innovativeness, technological innovativeness and, ultimately, firm performance. Hierarchical regressions were run with data from a random sample of 121 firms operating in Turkey. Findings indicate that internally-focused learning, market-focused learning and differentiation strategy have significant effects on the three innovativeness dimensions. When firm performance is included as the eventual outcome variable into the analysis, internally-focused learning, focus strategy and product innovativeness emerge as its main predictors. In fast-paced, highly unpredictable market environments, managers can make use of these findings to their benefit in terms of elevating their firms' innovativeness and performance levels.

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Critical competitive methods, generic strategies, and firm performance

Cited by 70 publications

References 41 publications

Five Competitive Forces Model and the Implementation of Porter’s Generic Strategies to Gain Firm Performances

Five Competitive Forces Model and the Implementation of Porter’s Generic Strategies to Gain Firm Performances

Top Management Team Demographic Diversities, Generic Strategy and Firm Performance in Marketing Social Research Association (MSRA) in Kenya

How do learning orientation and strategy yield innovativeness and superior firm performance?

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