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Strategic groups as subsets of strategic scope groups in the Belgian brewing industry

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  • Noël Houthoofd
  • Aimé Heene

Abstract

This research report proposes a distinction between strategic scope groups and strategic groups whereby strategic groups are delineated within strategic scope groups. A strategic scope group (SSG) includes firms within an industry that define their business using a four‐dimensional ‘strategic space’ consisting of buyer types, product types, geographical reach and level of vertical integration, in a similar way. Within each SSG there may be several strategic groups (SGs). An SG includes firms within an SSG that deploy their resources in a similar way and that compete in the same way. While all firms within an SSG may compete against each other, firms within the same SG compete against each other in a similar way. Within the brewing industry in Belgium five SSGs could be identified. These SSGs differ statistically significantly on a risk‐adjusted return on assets measure. SGs themselves did not differ on this performance measure. One may therefore conclude that mobility barriers between SSGs are higher than they are between SGs. © 1997 by John Wiley & Sons, Ltd.

Suggested Citation

  • Noël Houthoofd & Aimé Heene, 1997. "Strategic groups as subsets of strategic scope groups in the Belgian brewing industry," Strategic Management Journal, Wiley Blackwell, vol. 18(8), pages 653-666, September.
    • Handle: RePEc:bla:stratm:v:18:y:1997:i:8:p:653-666
    DOI: 10.1002/(SICI)1097-0266(199709)18:83.0.CO;2-E
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    1. Truong, Yann & Pinkse, Jonatan, 2019. "Opportunistic behaviors in green signaling: When do firms engage in symbolic green product preannouncement?," International Journal of Production Economics, Elsevier, vol. 218(C), pages 287-296.
    2. Francisco Espasandín Bustelo & Cristóbal Casanueva Rocha & Juan Domingo Ganaza Vargas, 2004. "Las nuevas tecnologías de la información y la comunicación en la economía social andaluza," CIRIEC-España, revista de economía pública, social y cooperativa, CIRIEC-España, issue 49, pages 193-215, August.
    3. Theuvsen, Ludwig & Heyder, Matthias & Niederhut-Bollmann, Christoph, 2010. "Does Strategic Group Membership Affect Firm Performance? An Analysis of the German Brewing Industry," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59(2).
    4. Palmer, Mark & Truong, Yann, 2017. "The Impact of Technological Green New Product Introductions on Firm Profitability," Ecological Economics, Elsevier, vol. 136(C), pages 86-93.
    5. Kim, Youngbae & Lee, Byungheon, 2002. "Patterns of technological learning among the strategic groups in the Korean Electronic Parts Industry," Research Policy, Elsevier, vol. 31(4), pages 543-567, May.
    6. Shun-Jen Hsueh & Hsin-Hong Kang, 2007. "Cointegration relationships of strategy variables among firms within strategic groups," Asia Pacific Journal of Management, Springer, vol. 24(1), pages 61-73, March.
    7. Johnson, Aaron J. & Johnson, Heather C. & Devadoss, Stephen & Foltz, John C., 2011. "Strategic Group Analysis of U.S. Food Businesses Using the Two-step Clustering Method," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-16, May.
    8. Zuniga-Vicente, Jose Angel & de la Fuente-Sabate, Juan Manuel & Suarez Gonzalez, Isabel, 2004. "Dynamics of the strategic group membership-performance linkage in rapidly changing environments," Journal of Business Research, Elsevier, vol. 57(12), pages 1378-1390, December.
    9. Theuvsen, Ludwig & Heyder, Matthias & Niederhut-Bollmann, Christoph, 2010. "Does Strategic Group Membership Affect Firm Performance? An Analysis of the German Brewing Industry," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(02), pages 1-16, June.
    10. N. Houthoofd & S. Desmidt & G. Fidalgo, 2009. "Analyzing Firm Performance Heterogeneity: The Relative Effect Of Business Definition," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/580, Ghent University, Faculty of Economics and Business Administration.
    11. Michael Greiner & Jing Sun, 2021. "How corporate social responsibility can incentivize top managers: A commitment to sustainability as an agency intervention," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1360-1375, July.

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