IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v61y2008i4p346-354.html
   My bibliography  Save this article

Does the implementation of a combination competitive strategy yield incremental performance benefits? A new perspective from a transition economy in Sub-Saharan Africa

Author

Listed:
  • Acquaah, Moses
  • Yasai-Ardekani, Masoud

Abstract

This study examines the performance implications of implementing generic competitive strategies, and whether the implementation of a combination competitive strategy yields an incremental performance benefit over a single generic competitive strategy using data from Ghana, a Sub-Saharan African economy implementing economic liberalization policies. Two types of singular generic competitive strategies are analyzed: cost-leadership and differentiation. Our findings from the overall sample provide support for the viability and profitability of implementing coherent generic competitive strategies -- cost-leadership, differentiation, and the combination of the singular strategies. The results further indicate that firms implementing a combination strategy tend to experience substantial incremental performance benefits over those implementing only the cost-leadership strategy. However, the incremental performance benefits to firms implementing a combination strategy do not significantly differ from the performance of firms implementing only the differentiation strategy. Furthermore, firms that implement a coherent competitive strategy (combination, cost-leadership, or differentiation) tend to gain considerable incremental performance benefits over firms that are stuck-in-the-middle. Implications are discussed.

Suggested Citation

  • Acquaah, Moses & Yasai-Ardekani, Masoud, 2008. "Does the implementation of a combination competitive strategy yield incremental performance benefits? A new perspective from a transition economy in Sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 61(4), pages 346-354, April.
    • Handle: RePEc:eee:jbrese:v:61:y:2008:i:4:p:346-354
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148-2963(07)00176-2
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    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. Suresh Kotha & Bhatt L. Vadlamani, 1995. "Assessing generic strategies: An empirical investigation of two competing typologies in discrete manufacturing industries," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 75-83.
    2. Suresh Kotha & Roger L. M. Dunbar & Allan Bird, 1995. "Strategic action generation: A comparison of emphasis placed on generic competitive methods by U.S. And Japanese managers," Strategic Management Journal, Wiley Blackwell, vol. 16(3), pages 195-220.
    3. Cliff Bowman & Véronique Ambrosini, 1997. "Perceptions of Strategic Priorities, Consensus and Firm Performance," Journal of Management Studies, Wiley Blackwell, vol. 34(2), pages 241-258, March.
    4. Anand, Jaideep & Brenes, Estaban R. & Karnani, Aneel & Rodriquez, Arnoldo, 2006. "Strategic responses to economic liberalization in emerging economies: Lessons from experience," Journal of Business Research, Elsevier, vol. 59(3), pages 365-371, March.
    5. Yiannis E. Spanos & George Zaralis & Spyros Lioukas, 2004. "Strategy and industry effects on profitability: evidence from Greece," Strategic Management Journal, Wiley Blackwell, vol. 25(2), pages 139-165, February.
    6. A. Miller & G. G. Dess, 1993. "Assessing Porter'S (1980) Model In Terms Of Its Generalizability, Accuracy And Simplicity," Journal of Management Studies, Wiley Blackwell, vol. 30(4), pages 553-585, July.
    7. Masoud Yasai-Ardekani & Paul C. Nystrom, 1996. "Designs for Environmental Scanning Systems: Tests of a Contingency Theory," Management Science, INFORMS, vol. 42(2), pages 187-204, February.
    8. Sashi, C. M. & Stern, Louis W., 1995. "Product differentiation and market performance in producer goods industries," Journal of Business Research, Elsevier, vol. 33(2), pages 115-127, June.
    9. Danny Miller, 1986. "Configurations of strategy and structure: Towards a synthesis," Strategic Management Journal, Wiley Blackwell, vol. 7(3), pages 233-249, May.
    10. Richard B. Robinson & John A Pearce, 1988. "Planned patterns of strategic behavior and their relationship to business‐unit performance," Strategic Management Journal, Wiley Blackwell, vol. 9(1), pages 43-60, January.
    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. Ahmed Agyapong & Kofi Amanor & Kofi Poku, 2016. "Antecedents To The Implementation Of Hybrid Strategy In A Dynamic Business Environment — An Econometric Analysis Of Business Decisions In Ghana," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 1-24, December.
    2. Brenes, Esteban R. & Montoya, Daniel & Ciravegna, Luciano, 2014. "Differentiation strategies in emerging markets: The case of Latin American agribusinesses," Journal of Business Research, Elsevier, vol. 67(5), pages 847-855.
    3. Ahmed Agyapong & Hannah Vivian Osei & Samuel Yaw Akomea, 2015. "Marketing Capability, Competitive Strategies And Performance Of Micro And Small Family Businesses In Ghana," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 1-25, December.
    4. Wijbenga, Frits H. & van Witteloostuijn, Arjen, 2007. "Entrepreneurial locus of control and competitive strategies - The moderating effect of environmental dynamism," Journal of Economic Psychology, Elsevier, vol. 28(5), pages 566-589, October.
    5. Luo, Yadong & Zhao, Hongxin, 2004. "Corporate link and competitive strategy in multinational enterprises: a perspective from subsidiaries seeking host market penetration," Journal of International Management, Elsevier, vol. 10(1), pages 77-105.
    6. Mas Bambang Baroto Author_Email: mbbaroto@ic.utm.my & Muhammad Madi Bin Abdullah, 2011. "He Application Of Cost, Differentiation And Hybrid Strategy In Business Operations: Will Hybrid Strategy Become The New Competitive Strategy?," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-261, Conference Master Resources.
    7. Chan, Ricky Yee-kwong & Wong, Y. H., 1999. "Bank generic strategies: does Porter's theory apply in an international banking center," International Business Review, Elsevier, vol. 8(5-6), pages 561-590, October.
    8. García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2012. "Towards a comprehensive model of entry timing in the ICT industry: Direct and indirect effects," Journal of World Business, Elsevier, vol. 47(2), pages 297-310.
    9. Brenes, Esteban R. & Ciravegna, Luciano & Pichardo, Caleb A., 2016. "Examining the strategy-performance link of Latin American businesses – a configurational approach," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(3), December.
    10. Nguyen Phong Nguyen & Samuel Adomako, 2021. "Environmental proactivity, competitive strategy, and market performance: The mediating role of environmental reputation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2008-2020, May.
    11. Acquaah, Moses, 2009. "International joint venture partner origin, strategic choice, and performance: A comparative analysis in an emerging economy in Africa," Journal of International Management, Elsevier, vol. 15(1), pages 46-60, March.
    12. Hamzah E. Alqudah & Mani Poshdar & Luqman Oyekunle Oyewobi & James Olabode Bamidele Rotimi & John Tookey, 2023. "Sustaining Construction Organisations in NZ: A Linear Regression Model Approach to Analysing Determinants of Their Performance," Sustainability, MDPI, vol. 15(5), pages 1-18, February.
    13. Becerra, Manuel & Santaló, Juan & Silva, Rosario, 2013. "Being better vs. being different: Differentiation, competition, and pricing strategies in the Spanish hotel industry," Tourism Management, Elsevier, vol. 34(C), pages 71-79.
    14. Jeffrey, Stephen & Diller, Heike & Fiedler, Marina, 2016. "Closing the strategy-performance gap: The role of communication fit and distraction," Passauer Diskussionspapiere, Betriebswirtschaftliche Reihe B-25-16, University of Passau, Faculty of Business and Economics.
    15. Cerrato, Daniele & Crosato, Lisa & Depperu, Donatella, 2016. "Archetypes of SME internationalization: A configurational approach," International Business Review, Elsevier, vol. 25(1), pages 286-295.
    16. BarNir, Anat & Gallaugher, John M. & Auger, Pat, 2003. "Business process digitization, strategy, and the impact of firm age and size: the case of the magazine publishing industry," Journal of Business Venturing, Elsevier, vol. 18(6), pages 789-814, November.
    17. Photis M. Panayides, 2003. "Competitive strategies and organizational performance in ship management," Maritime Policy & Management, Taylor & Francis Journals, vol. 30(2), pages 123-140, January.
    18. Alhamzah Alnoor & Khai Wah Khaw & XinYing Chew & Sammar Abbas & Zeeshan Zaib Khattak, 2023. "The Influence of the Barriers of Hybrid Strategy on Strategic Competitive Priorities: Evidence from Oil Companies," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(2), pages 179-198, June.
    19. Yi Liu & Wenqian Li & Yuan Li, 2020. "Ambidexterity between low cost strategy and CSR strategy: contingencies of competition and regulation," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 633-660, September.
    20. Claver-Cortés, Enrique & Pertusa-Ortega, Eva M. & Molina-Azorín, José F., 2012. "Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance," Journal of Business Research, Elsevier, vol. 65(7), pages 993-1002.

    More about this item

    Statistics

    Access and download statistics

    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:61:y:2008:i:4:p:346-354. 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.