Strategic Group Theory Research Articles

WOMEN AS A STRATEGIC GROUP: WOMEN'S STRATEGY IN POLITICAL NETWORKS THROUGH THE ECONOMIC AREA

Abstract Women’s participation in economic field and politic is often viewed in a dichotomous manner, where the economy is referred as "low politics." Women’s participation in economic organization is also seen as non-strategiv activism, which interpreted as activities that are distant or excluded from electoral politics and has less influence on the decision-making process. This research aims to challenge the argument and suggests that women's roles in the economy are indeed interconnected with the political sector. The study argues that women use their institutional capital as members of IWAPI to build relationships and political networks, where the appropriation of interests which means securing access to specific resources is the main goal. This research utilizes the Strategic Group theory from Evans Dieter-Evers and finds that women affiliated with IWAPI adopt personal and corporate appropriation modes in pursuing their interests. Personal appropriation is closely related to strengthening political networks through political parties to drive institutional change, while corporate appropriation is carried out by IWAPI members through expanding business networks and forming resource alliances. Furthermore, women can be categorized as a strategic group with business types and often employ cooperative strategies with other strategic groups. IWAPI is ultimately referred to as an organization formed by strategic groups of women for the appropriation of specific interests. Keywords: Women, strategic groups, agency, appropriation of interests

Firm Competitive Structure and Consumer Reaction in Search Advertisings

Sponsored search advertising has become an important venue for firms competing for consumers. As a result, many keywords attract a large number of bidders, and the competing advertisers may be quite heterogeneous. We examine whether this heterogeneity impacts how consumers perceive and react to such competitions. To this end, we draw on the theory of strategic groups to prescribe the structure of the competitive environment and investigate how strategic groups impact consumers’ clicking and website-visit behavior when viewing sponsored search results. Our unique datasets that combine search results from Google and consumers’ clickstream data enable us to disentangle such an impact. We find strong positive externality for within-group competitors relative to across-group competitors: (1) consumers are more likely to co-visit two firms that belong to the same strategic group, as opposed to two firms from different groups when both firms appear in the search results; (2) the presence of a firm in the search results primes consumers to visit other firms from the same strategic group even when the other firms do not appear in the search results. Our findings contribute to the sponsored search and strategic group literature by theorizing and empirically verifying consumers’ website-visit behaviors from the strategic group perspective.

Who benefits more from trade shows: Independent, franchised or chain-owned/managed hotels?

Large-scale events are opportunities for hotels to generate revenue. The literature has attested positive effects of events on hotel performance. However, while large-demand events are associated with room rate increases, hotel operation types may play a critical role in this “event-hotel performance” relationship. Drawing on the resource-based view theory, the chain value model and the theory of strategic groups, we hypothesize that independent and franchised hotels outperform chain-owned/managed hotels when events are held. The empirical application on over 950,000 observations between 2014 and 2019 shows that while chain-owned/managed hotels generally outperform independent and franchised hotels, this situation reverses in the presence of events. This result extends the resource-based view theory and the value chain model by including the short/long-term and corporate/property paradigm in the hotel industry.

How is the strategic group theory applied to higher education?

How is the strategic group theory applied to higher education?

Competitive dynamics of strategic groups in the Portuguese banking industry

The objective of this paper is to analyse the retail banking behaviour in Portugal (2008–2010, 2011–2013 and 2014–2016), by taking into account the financial and economic assistance programme (FEAP) – monitored by the European Commission, the European Central Bank and the International Monetary Fund – that Portugal went through and that started in 2011. With competitive dynamics it is possible to understand the evolution of competitive strategies of the institutions of a strategic group within a given time horizon. Data were collected after consultation of reports and accounts of Banks from Banco de Portugal database. The results were analysed and discussed in light of the theory of strategic groups and their competitive dynamics allows us to conclude that: Banks implemented different competitive strategies; Strategic groups have dissimilar resources; and Strategic groups display different strategies. The 2008–2010 period can be considered as a ‘deregulated’ period, the 2011–2013 as a period of ‘imposed regulation’, and the 2014–2016 as a period of ‘strategic consolidation’ with strategic changes that have prompted strategic groupings of the various institutions as consequence of a low mobility barrier strategy.

A competitive dynamics perspective on the diversification of third-party logistics providers’ service portfolios

The diversification of service portfolios is one of the key strategies employed by third-party logistics providers (3PLs) to remain competitive. Moving from traditional transportation and warehousing services, many 3PLs now offer a one-stop shopping experience to shippers by combining these services with customized offerings such as inventory management, integrated supply chain management, and consulting. Academic literature has identified key drivers of this phenomenon, such as the need to meet shippers’ increasing expectations, a 3PL’s strategic orientation, or to capitalize on existing resources and capabilities. Yet, work focused on the theoretical and empirical analysis of competitive drivers of 3PL diversification is scant. Grounded in competitive dynamics theory and the theory of strategic groups, we investigate the effects of the addition of new services by peer 3PLs on a focal 3PL’s diversification of service offerings. In particular, we hypothesize—and find based on the analysis of a large archival panel dataset—that a focal 3PL is more likely to expand its service portfolio when its peers introduce services that put them in direct competition with the focal 3PL. The same behavior is observed, though to a lesser extent and with longer time lags, when peers introduce services that the focal 3PL did not previously offer. The results also indicate that when there is greater similarity between the service portfolios of a focal firm and its peers, these relationships will be stronger. Collectively, these findings contribute to the logistics outsourcing and diversification literatures and offer refinements to competitive dynamics theory. Our work also offers managerial insights relevant to 3PL decision makers as they design their service portfolios.

A STUDY OF STRATEGIC GROUP BASED ON MAIN MELODY ANALYSIS – APPLICATION ON AN INDUSTRY IN CHINA

At present, the tremendous change in the industrial environment affects both enterprise and industry, while the core values of strategic management are also being transformed into innovation, collaboration and common development in line with the idea of sustainable development. In this paper, a method of studying strategic group was proposed on the basis of current thinking about the relationship between enterprises in industry and corporate strategic behavior and subsequently its application was illustrated in the performance data of 41 listed companies in an industry in China in 2012–2016. The main melody analysis based on synergy and Jingyou theory was used to classify and analyze the strategic groups in industry. Results obtained from this study such as the distributive features of strategic groups in industry, the main developing mode of industry, the main strategic group, the benchmark and synergistic partner will be of significance in the development of strategic group theory and the practice of modern strategic management. Keywords: Jingyou, main melody analysis, organizational values, strategic group, synergy.

Minimizing blind men effect in strategic group research: Visualizing complex turbulent markets

AbstractIncreasing complexity and turbulence of modern markets calls for nonstatic multitheoretical/empirical approaches with intrinsic triangulation and intuitive strategic cluster visualization to minimize the “blind men effect” to offer unbiased insights for various stakeholders: corporate strategic managers, policy researchers, and market legislators. This study presents a refined framework for multi‐time‐point dynamic analysis that integrates and superposes multiple dimensions of strategic flexibility, agility, and orientation for cross‐validated insights. It also addresses long‐standing critical debates on strategic group theory via the metaphor of the blind men and the elephant justifying the need for an in‐depth, multiperspective approach. Our approach reveals the evolution of the market structure (strategic and competitive dynamics) of the French pharmaceutical market over time by mapping and interpreting strategic movements over a turbulent time period.

Examining strategic group membership and firm performance in the global hotel industry

The increasing complexity of global competitive environment requires a comprehensive approach that integrates business practices and strategic management theory to investigate firms' performance. Following strategic group and competitive advantage theory, content analysis is adopted as a fundamental tool to investigate and categorise the competitive methods employed by multinational hotel firms in the new millennium era. The resulted differentiation-based strategic groups are further examined to explore the strategic sources of intra-industry performance differences in the global hotel industry. The results suggest that strategic group membership is an important predictor of hotel firms' performance. The patterns of commitment to strategic group membership have significant impacts on multinational hotel firms' business performance. These findings advance the current research on strategic group-performance relationship through discovering the important role played by strategic group commitment in the context of a globalised service industry.

Strategic behaviour of Russian companies with regard to intangibles

PurposeThe purpose of this paper is to explore strategy-specific competencies with regard to intangibles and provides empirical evidence of intangible-based strategy groups for Russian companies. Additionally, the study examines the link between intangible-based strategy and company performance.Design/methodology/approachThe paper uses strategic group theory and the resource-based view framework to identify similar strategic behaviour of companies by employment of intangibles. In line with the intellectual capital concept, the study provides a cluster analysis that considers four types of intangibles: human, relational, innovation and process capital. These are measured through publicly available data using principal component analysis. The empirical part of the study uses a database of 1,096 Russian public companies, which covers the period 2004–2014.FindingsAs a result, the study reveals three profiles of strategic behaviour with regard to intangibles. The majority of Russian public companies (63.5 per cent) are Generics and pursue a non-intensive intangible strategy. Only 13.3 per cent of companies constitute the intangible-intensive profile by having endowment of all intellectual resources higher than the sample average. The remaining companies (23.2 per cent) also pursue an intangible-intensive strategy with a focus on innovation capital. Intangible-intensive strategic groups outperform Generics.Originality/valueThe study proposes a novel intangible-based strategy continuum, which straddles two polar strategies: generic and smart. The study introduces insights to better understand the differences in performance across intangible-intensive strategies and presents a new empirical inquiry into strategic behaviour with regard to intangibles in Russia.

A Taxonomy of SME E-Commerce Platforms Derived from a Market-Level Analysis

ABSTRACTSmall and medium-size enterprises (SMEs) constitute a large and important sector of the U.S. and U.K. economies and e-commerce platforms have evolved that are designed specifically to help small business owners and entrepreneurs. Despite the popularity and importance of these digital platforms, there is a paucity of research in this area. This article contributes to theory by being the first study to map out the competitive landscape of SME e-commerce platforms in two markets using a theoretical framework and analysis that is based on business model and strategic group theories. In total, 144 platforms were analyzed using an online panel data methodology, which identified 32 leading SME e-commerce platforms in the UK and United States. These leading platforms were analyzed at the market level using cluster analysis based on strategic group theory and website content analysis. A taxonomy is proposed based on theoretical constructs derived from business model theory: value proposition, Web 2.0 sophistication, and revenue model. Five distinctive strategic groups are identified: information laggards, basic networking, advanced networking, advanced networking mature, and social media markets. The study further outlines managerial implications for SMEs, SME e-commerce platform providers, and external sponsors of the platforms—predominantly government organizations and banks.

Visualizing Elephants: Minimizing Blind Men Effect in Strategic Group Research of Turbulent Markets

This study addresses long-standing critiques of strategic group theory, particularly those related to the real-word pertinence of strategic groups discovered using specific combinations of strategic dimensions (do these groups really exist or are they mere statistical artifacts) and whether performance differences depend on said membership in strategic groups. We argue such debates are linked to differences in the very definitions of strategic groups needed to answer different research questions as well as omission bias by leveraging the metaphor of the blind men and the elephant. Further, we develop theoretical propositions to address such issues, propose an integrated hybrid, inducto-deductive, triangulated framework that allows a flexible choice of strategic group definitions and dimensions and superposition of multiple theoretical/empirical frameworks to minimize such biases and demonstrate its application to a complex turbulent market (French pharmaceutical industry during the turbulent 2010-2012) period. Our findings indicate that even short-lived market structural stability (attributed in part to cognitive inertia of strategic decision makers) is sufficient to render strategic group analysis meaningful for providing useful insights for diverse stakeholders.

Configurations of environmental management strategy: evidence from the container shipping service industry

This study applies the theory of strategic groups to segment environmental management practices orientation, and assess the performance outcomes of different environmental strategy oriented groups in container shipping sector in Taiwan. Based on data collected from 152 shipping firms, four environmental management dimensions were identified based on factor analysis: 1) environmental auditing; 2) environmental collaboration; 3) environmental purchasing; 4) environmental commitment. Cluster analysis was subsequently used to assign respondents' firms to three environmental strategy oriented groups, namely: environmental commitment oriented firms, environmental collaboration oriented firms, and environmental auditing and environmental purchasing oriented firms, based on their factor scores in the four environmental management dimensions. Finally, analysis of variance (ANOVA) results indicate that environmental auditing and purchasing oriented firms exhibited the best environmental performance among the groups, whereas environmental commitment oriented firms possessed the best non-financial performance, and environmental collaboration oriented firms had the best financial performance.

Proximity, Strategic Groups and Reputation: An Exploratory Study of Reputation in Higher Education

This paper explores the idea that stakeholder proximity, that is, how much/little experience a stakeholder has with a focal organization, impacts the extent to which stakeholders rely on strategic group characteristics as an anchor when judging the reputation of higher education institutions. We synthesize theories from psychology (ie, cognitive categorization theory) and management (ie, strategic group theory) to explore how stakeholder proximity may influence the formation of organizational reputation. Specifically, we examine how the proximity of three key stakeholders (N=1,049; prospective students, parents of students and hiring managers of new graduates) influences the perceived strategic character and generalized favorability of three distinct groups of post-secondary institutions (research-intensive universities, teaching-intensive universities and career colleges). Our results suggest that high proximity stakeholders rely less on strategic group characteristics, while reputation at a strategic group level is suggested to have greater influence on stakeholders who have less direct experience of and low proximity to an organization. Interestingly, our findings reveal some consistent differences between perceptions of prospective students and hiring managers that pose important theoretical questions about the role and impact of direct experiences in the reputation-building process, while also suggesting that higher education institutions may benefit significantly from differentiated marketing strategies according to issues of proximity.

Differentiated marketing strategies between strategic groups in Greek food industry

This study examines the heterogeneity of the Greek dairy industry based on 'strategic group theory'. Its objectives are: (1) to define strategic groups within the Greek dairy industry; (2) to examine whether firms move between strategic groups over time and (3) to examine the performance differences among these strategic groups. I use as key strategic variable product differentiation, which is measured by both advertising intensity and number of brands per firm. The results for the period 2002–2011 prove the existence of three strategic groups, based on differentiation within the Greek dairy industry, with certain performance differences.

Grupos estratégicos de investigación en escuelas de negocios y su relación con el desempeño: el caso de Chile

La presente investigación contextualiza cómo los mercados de educación superior se caracterizan por ser altamente competitivos. Esta situación se observa especialmente en las escuelas de negocios, las cuales toman decisiones que se enfocan en la creación de una imagen de reputación académica; por ejemplo, invertir recursos en investigación para ganar posiciones de liderazgo a nivel nacional e internacional. Aun cuando las escuelas de negocios ofrecen programas de estudios con un alto enfoque práctico y profesional, las actividades de investigación les permiten desarrollar conocimiento y vincularsecon los sectores privado y público. En este contexto, y recurriendo a la teoría degrupos estratégicos para estudiar su comportamiento en investigación, se consideraron las escuelas de negocios chilenas que aparecen en el ranking MBA de América Economía.Los resultados permiten identificar cuatros grupos estratégicos de investigación, de acuerdo con las decisiones que adoptan las escuelas de negocios en producción académica, equipo de investigación y difusión académica. Finalmente, se describe cómo la inversión realizada por las escuelas de negocios en fuentes de investigación tienen impacto en los indicadores de desempeño organizacional, tales como: acreditación internacional, posición en ranking de calidad y arancel de los programas de MBA.

Positioning decisions within strategic groups

Purpose– Strategic group has been intensively studied since this term emerged in 1970s, but previous studies have been limited to the comparisons between groups such as performance comparison. The purpose of this paper is to explore the internal structure of strategic groups by examining the effect of strategic distance from a firm to the center of its strategic group on firm performance.Design/methodology/approach– The research is based on data acquired from the annual reports of listed companies and some Chinese domestic databases, including CSMAR Solution, WIND financial database, and China Core Newspapers Full-text Database. After grouping listed pharmaceutical companies in China over the period 2010-2011, the authors test three hypotheses by using fixed effect regressions.Findings– The paper finds that the strategic distance from a firm to the center of its strategic group has a significant negative effect on the firm's financial performance. Two factors are discovered to influence that effect: corporate diversification strengthens the negative effect of strategic distance on performance, while firm's media visibility weakens that negative effect.Originality/value– The findings reveal the relationship between intra-group strategic positioning and firm performance, and specify how firms can gain competitive advantage through positioning choices and strategic actions. This study promotes the establishment of a more comprehensive strategic group theory by revealing the structure within strategic groups.

Competitive Pressure: Competitive Dynamics as Reactions to Multiple Rivals

Competitive dynamics research has focused primarily on interactions between dyads of firms. Drawing on the awareness-motivation-capability framework and strategic group theory we extend this by proposing that firms’ actions are influenced by perceived competitive pressure resulting from actions by several rivals. We predict that firms’ action magnitude is influenced by the total number of rival actions accumulating in the market, and that this effect is moderated by strategic group membership. We test this using data on the German mobile telephony market and find them supported: the magnitude of firm’s actions is influenced by a buildup of actions by multiple rivals, and firms react more strongly to strategically similar rivals.

Strategic groups in the Belgian fishing fleet

This study examines the heterogeneity of the Belgian fishing fleet based on “strategic groups”, a concept borrowed from the field of strategic management. Its objectives are: (1) to define strategic groups within the Belgian fishing fleet; (2) to examine the performance differences among these strategic groups; (3) to examine whether firms (i.e., vessels) move between strategic groups over time; and (4) to examine if firm-movement (i.e., vessel-movement) differs across strategic groups. In this study, strategic groups are derived through clustering firms based on their state of resources, built up through the collection of their past competitive strategic decisions, which are perceived as the main sources of mobility barriers (i.e. competitive advantages) in the fishing industry, namely: (1) technology, (2) product range and (3) geographic reach. Highly valid cluster solutions are obtained through use of excessive within- and between-method triangulation. Following this method, five strategic groups are identified that have distinct performance outcomes: (1) the large beam trawler fleet; (2) the small beam trawler fleet; (3) the shrimp beam trawler fleet; (4) the otter trawler fleet; and (5) the trammel netter fleet. Furthermore, in terms of firm movement and group loyalty, this study finds that once a vessel has decided on its strategic position in the fishing industry (i.e., the strategic group), in 80% of the cases, it stays in that position for a significant amount of time (in this case 10 years). However, not every strategic group enjoys this high level of group loyalty, since firm-movement differs significantly between the strategic groups. Although this is definitely a topic for further research, a possible interpretation for this phenomenon is the theory of “asymmetric mobility barriers” in combination with a firm's “isolating mechanisms”. The value of this study lies in its practical relevance to both policymakers and ship owners. Strategic group theory gives insight into the strategic differences and the patterns of rivalry between firms within the same industry. Such insights are crucial when managing fisheries and could result in regulations which are more focused on (1) affecting strategic groups’ competitive advantages (i.e., mobility barriers), (2) affecting “isolating mechanisms” of firms, and (3) managing rivalry between strategic groups. Ship owners and skippers can use the results of this study on the different performance potentials for the different competitive strategies in the current industry to determine if they are still satisfied with their current strategic direction. It allows them to reflect on current business and change strategic course based on the various performance indicators included in this research.

Strategic group theory: A customer-oriented view

Strategic group theory: A customer-oriented view