Abstract

This article proposes to decide on the impact of external and internal factors (competitive forces and strategic capabilities) on strategic competitive choices (pure or hybrid). Using a sample of Tunisian companies operating in the manufacturing industry, the results show that face to the competition’ intensity, companies opt for competitive hybrid strategies at the expense of pure ones only when they have strong combined strategic capabilities. However, when they have a stock of capabilities less rich and less diversified, they have interest to pursue a pure competitive strategy. Moreover, the study shows that the pure competitive strategy differs according to the nature of the strategic capabilities held.

Highlights

  • This research focuses on the competitive strategies proposed by Porter (1980) in the face of competitive intensity, whose competitive advantage can only be assured when they are mutually exclusive and whose the combination risks leading the company to become bogged down in a non-performing middle path

  • This research is a contribution to debates on the determinants of strategic competitive choices and the primacy of pure competitive strategies over hybrid ones and vice versa

  • Few works have brought these two types of factors together in a composite model crowned by the definition of favorable conditions for pursuing a pure competitive strategy or a hybrid competitive strategy

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Summary

Introduction

This research focuses on the competitive strategies (cost, differentiation, concentration) proposed by Porter (1980) in the face of competitive intensity, whose competitive advantage can only be assured when they are mutually exclusive and whose the combination risks leading the company to become bogged down in a non-performing middle path. If multiple works, which succeeded him, supported it (Hall, 1981; Hambrick, 1983; Galbraith & Schendel, 1983; Dess & Davis, 1984; Parker & Helms, 1992; Nayyar et al, 1994), many other more recent works have upset him and argue in favor of the combination of higher-performing strategies (Allen & Helms, 2006,; Miller, 1992; Acquah et al, 2008; Jonhson & Scholes, 2008; Hassen et al, 2015, Gaberiellson et al, 2015) This new trend states that in order to protect oneself against the new competitive reality, and to obtain a competitive advantage that is difficult to imitate and sustain, companies must master the "cost-quality" couple (Billard, 1991). More recent work has just shown the complementarity of these two approaches in explaining these strategies (Spanos & Lioukas, 2001)

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