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Strategic groups, competitive groups and performance within the U.K. pharmaceutical industry: Improving our understanding of the competitive process

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  • Graham Leask
  • David Parker

Abstract

Strategic group research originated in the 1970s and a number of notable studies centered on the U.S. pharmaceutical industry. Results were, however, conflicting. This paper explores the nature of strategic groups in the U.K. pharmaceutical industry. The study confirms the presence of between six and eight strategic groups across the period studied, 1998–2002. The study also demonstrates a statistically significant relationship between these strategic groups and performance using three performance measures. The paper then compares strategic groups with competitive groups and concludes that the distinction is important and may explain the contradictory findings in earlier strategic group research. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • Graham Leask & David Parker, 2007. "Strategic groups, competitive groups and performance within the U.K. pharmaceutical industry: Improving our understanding of the competitive process," Strategic Management Journal, Wiley Blackwell, vol. 28(7), pages 723-745, July.
    • Handle: RePEc:bla:stratm:v:28:y:2007:i:7:p:723-745
    DOI: 10.1002/smj.603
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    Cited by:

    1. Zucchini, Leon & Kretschmer, Tobias, 2011. "Competitive Pressure: Competitive Dynamics as Reactions to Multiple Rivals," Discussion Papers in Business Administration 12308, University of Munich, Munich School of Management.
    2. Santos, Alexandre Borges & Sproesser, Renato Luiz & Batalha, Mário Otávio, 2018. "Exploring strategic characteristics of intermodal grain terminals: Empirical evidence from Brazil," Journal of Transport Geography, Elsevier, vol. 66(C), pages 259-267.
    3. Manfred Lehner Othmar & Weber Christiana, 2020. "Growing up from In-Betweeners: Alternatives to Hybridity in Social Entrepreneurship Research," Entrepreneurship Research Journal, De Gruyter, vol. 10(3), pages 1-13, July.
    4. Täuscher, Karl & Laudien, Sven M., 2018. "Understanding platform business models: A mixed methods study of marketplaces," European Management Journal, Elsevier, vol. 36(3), pages 319-329.
    5. Vikas Anand & Mahendra Joshi & Anne M. O'Leary-Kelly, 2013. "An Organizational Identity Approach to Strategic Groups," Organization Science, INFORMS, vol. 24(2), pages 571-590, April.
    6. 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.
    7. Goddard, John & Tavakoli, Manouche & Wilson, John O.S., 2009. "Sources of variation in firm profitability and growth," Journal of Business Research, Elsevier, vol. 62(4), pages 495-508, April.
    8. Jaime Gómez & Raquel Orcos & Sergio Palomas, 2013. "Multimarket Contact Externalities: The Effect of Rivals' Multimarket Contacts on Focal Firm Performance," Working Papers 1302, Departament Empresa, Universitat Autònoma de Barcelona, revised Apr 2013.
    9. Lim, Stanley Frederick W. T. & Srai, Jagjit Singh, 2015. "E-commerce Last-mile Supply Network Configuration and Logistics Capability," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Innovations and Strategies for Logistics and Supply Chains: Technologies, Business Models and Risk Management. Proceedings of the Hamburg Internationa, volume 20, pages 59-89, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    10. Hernández-Perlines, Felipe & Moreno-García, Juan & Yañez-Araque, Benito, 2016. "The mediating role of competitive strategy in international entrepreneurial orientation," Journal of Business Research, Elsevier, vol. 69(11), pages 5383-5389.
    11. Lampel, Joseph & Bhalla, Ajay, 2011. "Living with offshoring: The impact of offshoring on the evolution of organizational configurations," Journal of World Business, Elsevier, vol. 46(3), pages 346-358, July.
    12. Ángela González-Moreno & Francisco Sáez-Martínez, 2008. "Rivalry and strategic groups: what makes a company a rival?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 12(3), pages 261-285, August.
    13. Shingo Yoshida & Hironori Yagi & Akira Kiminami & Guy Garrod, 2019. "Farm Diversification and Sustainability of Multifunctional Peri-Urban Agriculture: Entrepreneurial Attributes of Advanced Diversification in Japan," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    14. Julen Castillo‐Apraiz & Jesus Matey, 2020. "Customizing competitive strategy to entry timing: Implications for firm performance in the pharmaceutical industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 976-985, September.
    15. Travassos Rosário, Albérico & Carrizo Moreira, António & Macedo, Pedro, 2021. "Competitive dynamics of strategic groups in the Portuguese banking industry," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    16. Robson, Julie & van der Heijden, Hans, 2016. "Senior management perceptions of aspirational groups: A study of the UK general insurance market," Journal of Business Research, Elsevier, vol. 69(8), pages 2731-2738.
    17. Rodolfo Petter & Luis Resende & Pedro Andrade Júnior & Diogo Horst, 2014. "Systematic review: an analysis model for measuring the coopetitive performance in horizontal cooperation networks mapping the critical success factors and their variables," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 157-178, August.
    18. Shingo Yoshida & Hironori Yagi, 2023. "Effects of Sustainability Practices on Farm Continuity in Urban Agriculture: From the Creating Shared Value Perspective," Sustainability, MDPI, vol. 15(21), pages 1-20, October.
    19. Chen, Yi-Min & Ni, Yu-Ting & Liu, Hsin-Hsien & Teng, Ying-Maw, 2015. "Information- and rivalry-based perspectives on reactive patent litigation strategy," Journal of Business Research, Elsevier, vol. 68(4), pages 788-792.
    20. Zhi Tang & Jintong Tang, 2016. "The Impact of Competitors–Firm Power Divergence on Chinese SMES’ Environmental and Financial Performance," Journal of Business Ethics, Springer, vol. 136(1), pages 147-165, June.

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