Moderating Role of Environment on the Relationship of Competitive Strategy and Firm Performance: Based on Machine Learning and Text Analysis

Abstract

The impact of competitive strategy on firm performance has been a fundamental and important issue. However, there is a little research on moderating role of environment on the relationship, especially moderating role of different dimensions of environment. This study employs the technology of machine learning and text analysis to obtain the measure value of competitive strategy and environment. On this basis, the research empirically investigates the moderating effect of environmental dynamism, complexity and competitiveness on the relationship between competitive strategy and organizational performance. The results show that both types of competitive strategy can improve corporate performance, environmental characteristics have a significant impact on the causal relationship mentioned above, and there are differences in the moderating effects of different environmental dimensions. Some conclusions are inconsistent with the research of foreign scholars. The differences in conclusions reflect the impact of China's transitional economic environment on corporate competitive strategy decisions and result.