Strategic Groups and Performance in Higher Education in Brazil

Abstract

The private on-campus higher education industry in Brazil faces numerous challenges and an increasingly competitive business scenario. Therefore, it becomes critical to verify the potential existence of strategic business groups in this industry, measure their fit to Porter’s and Mintzberg’s typologies, and assess the performance of the stuck-in-the-middle (SITM) group vis-à-vis other groups’ performances. Statistical tests using proxies based on data from the 2016 to 2020 period and associated with 21 business units distributed throughout Brazil suggest the existence of strategic groups in this industry and their fit to the typologies of the study. According to the literature, the SITM group performed below other strategic groups in general, albeit with statistically significant lower results only in comparison to the “focus on differentiation” strategic group. The research results enhance the debate about strategic groups and performance and point to existing strategic risks and opportunities for Brazilian private institutions. In addition, they provide a robust analytical model of performance in the sector for discussion and future use.