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Assessing Porter'S (1980) Model In Terms Of Its Generalizability, Accuracy And Simplicity

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  • A. Miller
  • G. G. Dess

Abstract

The Porter (1980) model of generic strategies is evaluated in terms of simplicity, accuracy (i.e., predictive and explanatory power), and generalizability, through an empirical analysis of PIMS data. Results lead to the following conclusions: (1) the simplicity of Porter's model captures much of the complexity inherent in strategic gestalts; (2) Porter's framework could be improved by viewing it as providing three important dimensions of strategic positioning rather than three (or four) distinct strategies; (3) performance norms vary significantly across strategic types, though Porter's predictions of performance are not entirely accurate; (4) strategies such as those described by Porter are possibly more contingent than generic, thus limiting the generalizability of some prescriptions implicit in the model.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:jomstd:v:30:y:1993:i:4:p:553-585
    DOI: 10.1111/j.1467-6486.1993.tb00316.x
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    Cited by:

    1. Waidi Adeniyi Akingbade, 2020. "Strategic Options for Improved Organizational Performance in the Nigerian Telecommunication Industry: Miles and Snow Approach," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 58-69.
    2. Ron Adner & Francisco Ruiz-Aliseda & Peter Zemsky, 2016. "Specialist versus Generalist Positioning: Demand Heterogeneity, Technology Scalability and Endogenous Market Segmentation," Strategy Science, INFORMS, vol. 1(3), pages 184-206, September.
    3. 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.
    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. 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.
    6. Asdemir, Ozer & Fernando, Guy D & Schneible, Richard A. & Tripathy, Arindam, 2017. "Impact of strategy on analyst information," Advances in accounting, Elsevier, vol. 37(C), pages 103-110.
    7. 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.
    8. 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.
    9. Jinhee Kwon & Cheong Kim & Kun Chang Lee, 2020. "Moderating Effect of the Continental Factor on the Business Strategy and M&A Performance in the Pharmaceutical Industry for Sustainable International Business," Sustainability, MDPI, vol. 12(12), pages 1-14, June.
    10. 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.
    11. Steven Shijin Zhou & Peter Ping Li & Abby Jingzi Zhou & Shameen Prashantham, 2020. "The cultural roots of compositional capability in China: balanced moderation," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 1217-1237, December.
    12. 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.
    13. Acquaah, Moses, 2013. "Management control systems, business strategy and performance: A comparative analysis of family and non-family businesses in a transition economy in sub-Saharan Africa," Journal of Family Business Strategy, Elsevier, vol. 4(2), pages 131-146.
    14. 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.
    15. Chi‐Hyon Lee & Manuela N. Hoehn‐Weiss & Samina Karim, 2021. "Competing both ways: How combining Porter's low‐cost and focus strategies hurts firm performance," Strategic Management Journal, Wiley Blackwell, vol. 42(12), pages 2218-2244, December.
    16. Avci, Umut & Madanoglu, Melih & Okumus, Fevzi, 2011. "Strategic orientation and performance of tourism firms: Evidence from a developing country," Tourism Management, Elsevier, vol. 32(1), pages 147-157.
    17. Samppa Suoniemi & Lars Meyer-Waarden & Andreas Munzel & Alex Ricardo Zablah & Detmar Straub, 2020. "Big data and firm performance: The roles of market-directed capabilities and business strategy," Post-Print hal-02957479, HAL.
    18. Jan W. Rivkin, 2000. "Imitation of Complex Strategies," Management Science, INFORMS, vol. 46(6), pages 824-844, June.
    19. Artz, Martin & Homburg, Christian & Rajab, Thomas, 2012. "Performance-measurement system design and functional strategic decision influence: The role of performance-measure properties," Accounting, Organizations and Society, Elsevier, vol. 37(7), pages 445-460.
    20. 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.
    21. Aliyu Shehu Usman & Ahmed Sabo & Tariro Masunda, 2019. "The Review of Management Control System, corporate Strategy and Firm Performance," iRASD Journal of Management, International Research Alliance for Sustainable Development (iRASD), vol. 1(1), pages 12-19, June.
    22. Balsam, Steven & Fernando, Guy D. & Tripathy, Arindam, 2011. "The impact of firm strategy on performance measures used in executive compensation," Journal of Business Research, Elsevier, vol. 64(2), pages 187-193, February.
    23. Fernando, Guy D. & Schneible, Richard A. & Tripathy, Arindam, 2016. "Firm strategy and market reaction to earnings," Advances in accounting, Elsevier, vol. 33(C), pages 20-34.
    24. Maurilio Alves de Melo & Rodrigo José Guerra Leone, 2015. "Alignment between Competitive Strategies and Cost Management: a Study of Small Manufacturing Companies," Brazilian Business Review, Fucape Business School, vol. 12(5), pages 78-96, September.
    25. Linton, Gabriel & Kask, Johan, 2017. "Configurations of entrepreneurial orientation and competitive strategy for high performance," Journal of Business Research, Elsevier, vol. 70(C), pages 168-176.

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