Senior management perceptions of aspirational groups: A study of the UK general insurance market

Abstract

This study examines the concept of aspirational groups: a reference group that a firm wishes to associate with. A desire to belong to an aspirational group may provide an important source of strategy formulation. Drawing from insights from consumer marketing on aspirational groups, the study explores the composition and structure of aspirational groups compared to strategic groups in a market setting. Using qualitative data from senior managers in the UK general insurance market, this study arrives at the following findings. First, aspirational groups do not necessarily share the same composition or structure as strategic groups. Second, selection of aspirational firms is driven by attribute association. Third, aspirations can be conflicting and reversed. Fourth, firms do not seek membership of the aspirational group but isolate key attributes they aspire to. These findings contribute to knowledge on strategy formation by highlighting the important role aspirational groups play in understanding competitive market movements.

Looking forward instead of backward

“…As a result, a firm's goals or aspirations are an outgrowth of a manager's goal setting behavior (Schimmer and Brauer, 2012; Shinkle, 2012). This is consistent with behavioral research in which a firm's aspirations are often explained as a managerial level construct (Shinkle, 2012, p. 423; see also Robson and Van der Heijden, 2016). This study however adds that while the manager is tasked with setting their firm's future goals or aspirations (i.e.…”

“…This social comparison facilitates a firm's exploitive search because a firm shares similar experiences with its strategic group members and therefore offers solutions most relevant to improving a firm's performance. Yet, Robson and Van der Heijden's (2016) empirical study found that managers engage in a social comparison to members of an “aspirational group” that did not include the same members of a strategic group. Aspirational groups involve those groups “in which a person does not hold membership but wants, or aspires, to become a member” (Robson and Van der Heijden, 2016, p. 2732).…”

“…Yet, Robson and Van der Heijden's (2016) empirical study found that managers engage in a social comparison to members of an “aspirational group” that did not include the same members of a strategic group. Aspirational groups involve those groups “in which a person does not hold membership but wants, or aspires, to become a member” (Robson and Van der Heijden, 2016, p. 2732). The members of an aspirational group offer a positive influence or role model in which individuals have a strong desire to aspire to the attributes or behaviors of the members of the aspirational group (Robson and Van der Heijden, 2016).…”

“…Aspirational groups involve those groups “in which a person does not hold membership but wants, or aspires, to become a member” (Robson and Van der Heijden, 2016, p. 2732). The members of an aspirational group offer a positive influence or role model in which individuals have a strong desire to aspire to the attributes or behaviors of the members of the aspirational group (Robson and Van der Heijden, 2016). With this positive influence, managers have a strong desire to mimic the attributes or behaviors of these aspirational members because this mimicry creates an association where the positive influence of these referent members are imputed on the imitating firm (Robson and Van der Heijden, 2016; see also Short and Palmer, 2003; Stuart, 1998; Reschke et al , 2017).…”

“…The members of an aspirational group offer a positive influence or role model in which individuals have a strong desire to aspire to the attributes or behaviors of the members of the aspirational group (Robson and Van der Heijden, 2016). With this positive influence, managers have a strong desire to mimic the attributes or behaviors of these aspirational members because this mimicry creates an association where the positive influence of these referent members are imputed on the imitating firm (Robson and Van der Heijden, 2016; see also Short and Palmer, 2003; Stuart, 1998; Reschke et al , 2017). Since exploitive search involves a social comparison to similar or closely related members, exploitation involves imitating the goals of those aspirational members that are similar to those of a manager's forward-looking aspirations.…”