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Pure versus hybrid competitive strategies in the forest sector: Performance implications

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  • Hansen, Eric
  • Nybakk, Erlend
  • Panwar, Rajat

Abstract

The extant forest sector strategy research rests on Porter's classic dictum that successful firms pursue a singular strategy. A growing research stream on organizational ambidexterity, however, challenges this traditional view and recommends the pursuit of hybrid strategies, a phenomenon that we note existing among forest sector firms. In this study, we set out to compare the financial performance of firms pursuing a singular or pure strategy and those pursuing hybrid strategies. We compare whether a differentiation, overall low cost, or hybrid strategy yields higher financial performance. We first deduce our study hypotheses and then test each using data from 441 US-based manufacturing firms drawn from multiple sub-sectors. We find no evidence that a hybrid strategy is a more effective choice towards enhanced firm performance than a singular strategy. We also find that firms pursuing a differentiation strategy are the highest performers while there is little difference in performance of firms pursuing other strategies.

Suggested Citation

  • Hansen, Eric & Nybakk, Erlend & Panwar, Rajat, 2015. "Pure versus hybrid competitive strategies in the forest sector: Performance implications," Forest Policy and Economics, Elsevier, vol. 54(C), pages 51-57.
    • Handle: RePEc:eee:forpol:v:54:y:2015:i:c:p:51-57
    DOI: 10.1016/j.forpol.2015.02.001
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