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Strategies of effective low share businesses

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  • Carolyny. Y. Woo
  • Arnold C. Cooper

Abstract

Previous research has suggested that low share market businesses have dismal prospects. This study examines low share businesses which are effective. In particular, it examines the product‐market choices and competitive strategies of effective low share businesses, comparing them with two control groups: effective high share and ineffective low share businesses. Data are drawn from PIMS data bases and hypotheses are tested using cluster analysis and discriminant analysis. Effective low share businesses are found to locate in stable rather than protected environments. Their competitive strategies are strongly characterized by selective focus on specific strengths.

Suggested Citation

  • Carolyny. Y. Woo & Arnold C. Cooper, 1981. "Strategies of effective low share businesses," Strategic Management Journal, Wiley Blackwell, vol. 2(3), pages 301-318, July.
    • Handle: RePEc:bla:stratm:v:2:y:1981:i:3:p:301-318
    DOI: 10.1002/smj.4250020307
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    Cited by:

    1. Chowdhury, Shamsud D. & Lang, James R., 1996. "Turnaround in small firms: An assessment of efficiency strategies," Journal of Business Research, Elsevier, vol. 36(2), pages 169-178, June.
    2. Leiblein, Michael J. & Reuer, Jeffrey J., 2004. "Building a foreign sales base: the roles of capabilities and alliances for entrepreneurial firms," Journal of Business Venturing, Elsevier, vol. 19(2), pages 285-307, March.
    3. Kartick Gupta, 2018. "Environmental Sustainability and Implied Cost of Equity: International Evidence," Journal of Business Ethics, Springer, vol. 147(2), pages 343-365, January.
    4. Sorrentino, Mario & Williams, Mary L., 1995. "Relatedness and corporate venturing: Does it really matter?," Journal of Business Venturing, Elsevier, vol. 10(1), pages 59-73, January.
    5. Asif Ali & Ashok Aima & Jaya Bhasin & Robert D. Hisrich, 2021. "Measuring Entrepreneurial Orientation in Developing Economies: Scale Development and Validation," Jindal Journal of Business Research, , vol. 10(2), pages 147-162, December.
    6. Fritz, Wolfgang, 1993. "Produktqualität, Marktanteil und Unternehmenserfolg: Ergebnisse der PIMS-Forschung und ihre empirische Relevanz für die westdeutsche Industrie," Working Papers 93/03, Technische Universität Braunschweig, Institute of Marketing.
    7. Paul E. Bierly III & Paula S. Daly, 2007. "Alternative Knowledge Strategies, Competitive Environment, and Organizational Performance in Small Manufacturing Firms," Entrepreneurship Theory and Practice, , vol. 31(4), pages 493-516, July.
    8. Heather Dixon-Fowler & Daniel Slater & Jonathan Johnson & Alan Ellstrand & Andrea Romi, 2013. "Beyond “Does it Pay to be Green?” A Meta-Analysis of Moderators of the CEP–CFP Relationship," Journal of Business Ethics, Springer, vol. 112(2), pages 353-366, January.
    9. Todd A. Finkle, 1998. "The Relationship between Boards of Directors and Initial Public Offerings in the Biotechnology Industry," Entrepreneurship Theory and Practice, , vol. 22(3), pages 5-29, April.
    10. Heather R. Dixon-Fowler & Alan E. Ellstrand & Jonathan L. Johnson, 2017. "The Role of Board Environmental Committees in Corporate Environmental Performance," Journal of Business Ethics, Springer, vol. 140(3), pages 423-438, February.
    11. De Castro, Julio O. & Chrisman, James J., 1995. "Order of market entry, competitive strategy, and financial performance," Journal of Business Research, Elsevier, vol. 33(2), pages 165-177, June.
    12. Santamaría Sánchez, Luis, 2006. "Technological collaboration : bridging the innovation gap between small and large firms," DEE - Working Papers. Business Economics. WB wb066620, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    13. Nair, Anil & Selover, David D., 2012. "A study of competitive dynamics," Journal of Business Research, Elsevier, vol. 65(3), pages 355-361.
    14. Jarrar, Nazmi Saeb & Smith, Malcolm, 2014. "Innovation in entrepreneurial organisations: A platform for contemporary management change and a value creator," The British Accounting Review, Elsevier, vol. 46(1), pages 60-76.
    15. W. Alan Randolph & Harry J. Sapienza & Mary Anne Watson, 1991. "Technology-Structure Fit and Performance in Small Businesses: An Examination of the Moderating Effects of Organizational States," Entrepreneurship Theory and Practice, , vol. 16(1), pages 27-42, October.
    16. Bantel, Karen A., 1998. "Technology-based, "adolescent" firm configurations: strategy identification, context, and performance," Journal of Business Venturing, Elsevier, vol. 13(3), pages 205-230, May.

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