IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v69y2016i8p2731-2738.html
   My bibliography  Save this article

Senior management perceptions of aspirational groups: A study of the UK general insurance market

Author

Listed:
  • Robson, Julie
  • van der Heijden, Hans

Abstract

This study examines the concept of aspirational groups: a reference group that a firm wishes to associate with. A desire to belong to an aspirational group may provide an important source of strategy formulation. Drawing from insights from consumer marketing on aspirational groups, the study explores the composition and structure of aspirational groups compared to strategic groups in a market setting. Using qualitative data from senior managers in the UK general insurance market, this study arrives at the following findings. First, aspirational groups do not necessarily share the same composition or structure as strategic groups. Second, selection of aspirational firms is driven by attribute association. Third, aspirations can be conflicting and reversed. Fourth, firms do not seek membership of the aspirational group but isolate key attributes they aspire to. These findings contribute to knowledge on strategy formation by highlighting the important role aspirational groups play in understanding competitive market movements.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:8:p:2731-2738
    DOI: 10.1016/j.jbusres.2015.11.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296315006025
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2015.11.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wilfred Amaldoss & Sanjay Jain, 2008. "—Trading Up: A Strategic Analysis of Reference Group Effects," Marketing Science, INFORMS, vol. 27(5), pages 932-942, 09-10.
    2. R. E. Caves & M. E. Porter, 1977. "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(2), pages 241-261.
    3. Childers, Terry L & Rao, Akshay R, 1992. "The Influence of Familial and Peer-Based Reference Groups on Consumer Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(2), pages 198-211, September.
    4. John McGee & Howard Thomas, 1986. "Strategic groups: Theory, research and taxonomy," Strategic Management Journal, Wiley Blackwell, vol. 7(2), pages 141-160, March.
    5. Zied Guedri & Jean McGuire, 2011. "Multimarket Competition, Mobility Barriers, and Firm Performance," Journal of Management Studies, Wiley Blackwell, vol. 48(4), pages 857-890, June.
    6. Avi Fiegenbaum & Howard Thomas, 1990. "Strategic groups and performance: The U.S. insurance industry, 1970–84," Strategic Management Journal, Wiley Blackwell, vol. 11(3), pages 197-215, March.
    7. Bearden, William O & Netemeyer, Richard G & Teel, Jesse E, 1989. "Measurement of Consumer Susceptibility to Interpersonal Influence," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(4), pages 473-481, March.
    8. Margaret Peteraf & Mark Shanley, 1997. "Getting To Know You: A Theory Of Strategic Group Identity," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 165-186, July.
    9. Deepika Nath & Thomas S. Gruca, 1997. "Convergence across alternative methods for forming strategic groups," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 745-760, October.
    10. Rhonda K. Reger & Anne Sigismund Huff, 1993. "Strategic groups: A cognitive perspective," Strategic Management Journal, Wiley Blackwell, vol. 14(2), pages 103-123, February.
    11. Levinthal, Daniel & March, James G., 1981. "A model of adaptive organizational search," Journal of Economic Behavior & Organization, Elsevier, vol. 2(4), pages 307-333, December.
    12. Avi Fiegenbaum & Howard Thomas & Ming-Je Tang, 2001. "Linking hypercompetition and strategic group theories: strategic maneuvering in the US insurance industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 22(4-5), pages 265-279.
    13. Kenneth J. Hatten & Mary Louise Hatten, 1987. "Strategic groups, asymmetrical mobility barriers and contestability," Strategic Management Journal, Wiley Blackwell, vol. 8(4), pages 329-342, July.
    14. 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.
    15. Huang, Kuo-Feng, 2009. "How do strategic groups handle cognitive complexity to sustain competitive advantage? A commentary essay," Journal of Business Research, Elsevier, vol. 62(12), pages 1296-1298, December.
    16. Cheng, Shu-Ling & Chang, Hae-Ching, 2009. "Performance implications of cognitive complexity: An empirical study of cognitive strategic groups in semiconductor industry," Journal of Business Research, Elsevier, vol. 62(12), pages 1311-1320, December.
    17. Tamela D. Ferguson & David L. Deephouse & William L. Ferguson, 2000. "Do strategic groups differ in reputation?," Strategic Management Journal, Wiley Blackwell, vol. 21(12), pages 1195-1214, December.
    18. Karel Cool & Dan Schendel, 1988. "Performance differences among strategic group members," Strategic Management Journal, Wiley Blackwell, vol. 9(3), pages 207-223, May.
    19. Enrico Diecidue & Jeroen van de Ven, 2008. "Aspiration Level, Probability Of Success And Failure, And Expected Utility," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(2), pages 683-700, May.
    20. Zied Guedri & Jean Mcguire, 2011. "Multimarket competition, mobility barriers, and firm performance," Post-Print hal-02312578, HAL.
    21. Bearden, William O & Etzel, Michael J, 1982. "Reference Group Influence on Product and Brand Purchase Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(2), pages 183-194, September.
    22. Porter, Michael E, 1979. "The Structure within Industries and Companies' Performance," The Review of Economics and Statistics, MIT Press, vol. 61(2), pages 214-227, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Antonio Gozzi & Roberta Scarsi & Riccardo Spinelli, 2015. "Un?analisi dei raggruppamenti strategici nella fornitura di servizi logistici," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2015(2), pages 231-257.
    3. 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.
    4. 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.
    5. 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.
    6. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & Gino Cattani & Joseph F. Porac & Howard Thomas, 2017. "Categories and competition," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 64-92, January.
    7. Olusoga, S. Ade & Mokwa, Michael P. & Noble, Charles H., 1995. "Strategic groups, mobility barriers, and competitive advantage: An empirical investigation," Journal of Business Research, Elsevier, vol. 33(2), pages 153-164, June.
    8. Cheng, Shu-Ling & Chang, Hae-Ching, 2009. "Performance implications of cognitive complexity: An empirical study of cognitive strategic groups in semiconductor industry," Journal of Business Research, Elsevier, vol. 62(12), pages 1311-1320, December.
    9. Brenner, Steffen & Bunke, Olaf & Droge, Bernd & Schwalbach, Joachim, 2001. "The relative importance of group-level effects on the performance of German companies," SFB 373 Discussion Papers 2001,95, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    10. Peter Ebbes & Rajdeep Grewal & Wayne DeSarbo, 2010. "Modeling strategic group dynamics: A hidden Markov approach," Quantitative Marketing and Economics (QME), Springer, vol. 8(2), pages 241-274, June.
    11. Gisele Walczak Galilea & William Eid Junior, 2017. "The Competitive Structure and Strategic Positioning of the Bank Industry in the Face of Major Environmental Disturbances: A Study of Brazilian Banks," Brazilian Business Review, Fucape Business School, vol. 14(4), pages 368-384, July.
    12. Day, Diana L. & Lewin, Arie Y. & Li, Hongyu, 1995. "Strategic leaders or strategic groups: A longitudinal data envelopment analysis of the U.S. brewing industry," European Journal of Operational Research, Elsevier, vol. 80(3), pages 619-638, February.
    13. Prior, Diego & Surroca, Jordi, 2006. "Strategic groups based on marginal rates: An application to the Spanish banking industry," European Journal of Operational Research, Elsevier, vol. 170(1), pages 293-314, April.
    14. Mas-Ruiz, Francisco J. & Ruiz-Conde, Enar & Calderón-Martínez, Aurora, 2018. "Strategic group influence on entry mode choices in foreign markets," International Business Review, Elsevier, vol. 27(6), pages 1259-1269.
    15. Hałaj, Grzegorz & Żochowski, Dawid, 2006. "Strategic groups in Polish banking sector and financial stability," MPRA Paper 326, University Library of Munich, Germany.
    16. Huang, Kuo-Feng, 2009. "How do strategic groups handle cognitive complexity to sustain competitive advantage? A commentary essay," Journal of Business Research, Elsevier, vol. 62(12), pages 1296-1298, December.
    17. Pätäri, Satu & Puumalainen, Kaisu & Jantunen, Ari & Sandstrüm, Jaana, 2011. "The interface of the energy and forest sectors--Potential players in the bioenergy business," International Journal of Production Economics, Elsevier, vol. 131(1), pages 322-332, May.
    18. Enrique Claver & Jose Molina & Juan Tari, 2003. "Strategic groups and firm performance: the case of Spanish house-building firms," Construction Management and Economics, Taylor & Francis Journals, vol. 21(4), pages 369-377.
    19. Sudharshan, Devanathan & Furrer, Olivier & Arakoni, Ramesh A., 2013. "Robust Imitation Strategies," FSES Working Papers 446, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    20. 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:69:y:2016:i:8:p:2731-2738. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.