IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v62y2009i12p1311-1320.html
   My bibliography  Save this article

Performance implications of cognitive complexity: An empirical study of cognitive strategic groups in semiconductor industry

Author

Listed:
  • Cheng, Shu-Ling
  • Chang, Hae-Ching

Abstract

This study extends previous strategic group research by empirically examining the performance effects of group's cognitive complexity in Taiwan semiconductor industry. Through computer-aided content analysis, this study derives themes from letters to shareholders as variables to assess the managerial cognitive complexity and uses thematic variations to find cognitive strategic groups during periods of market downturns, uncertainty and upturns. The study specifies three statistically reliable and accurate themes (operation, customer, and product) and identifies five types of cognitive strategic groups with different degrees of cognitive complexity on perceived strategic dimensions. The results indicate that cognitively complex groups with dual orientations toward customers and products sustain competitive advantages over time, especially during periods of market downturns and uncertainty.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:62:y:2009:i:12:p:1311-1320
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148-2963(08)00272-5
    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. 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.
    2. Anil Nair & Suresh Kotha, 2001. "Does group membership matter? Evidence from the Japanese steel industry," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 221-235, March.
    3. Richard L Daft & Juhani Sormunen & Don Parks, 1988. "Chief executive scanning, environmental characteristics, and company performance: An empirical study," Strategic Management Journal, Wiley Blackwell, vol. 9(2), pages 123-139, March.
    4. 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.
    5. J. David Osborne & Charles I. Stubbart & Arkalgud Ramaprasad, 2001. "Strategic groups and competitive enactment: a study of dynamic relationships between mental models and performance," Strategic Management Journal, Wiley Blackwell, vol. 22(5), pages 435-454, May.
    6. Edward H. Bowman, 1984. "Content Analysis of Annual Reports for Corporate Strategy and Risk," Interfaces, INFORMS, vol. 14(1), pages 61-71, February.
    7. Monique Forte & James J. Hoffman & Bruce T. Lamont & Erich N. Brockmann, 2000. "Organizational form and environment: an analysis of between‐form and within‐form responses to environmental change," Strategic Management Journal, Wiley Blackwell, vol. 21(7), pages 753-773, July.
    8. Joseph F. Porac & Howard Thomas & Charles Baden‐Fuller, 1989. "Competitive Groups As Cognitive Communities: The Case Of Scottish Knitwear Manufacturers," Journal of Management Studies, Wiley Blackwell, vol. 26(4), pages 397-416, 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. 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.
    12. 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.
    13. Pratima Bansal, 2005. "Evolving sustainably: a longitudinal study of corporate sustainable development," Strategic Management Journal, Wiley Blackwell, vol. 26(3), pages 197-218, March.
    14. Kassarjian, Harold H, 1977. "Content Analysis in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 4(1), pages 8-18, June.
    15. Avi Fiegenbaum & Howard Thomas, 1993. "Industry And Strategic Group Dynamics: Competitive Strategy In The Insurance Industry, 1970–84," Journal of Management Studies, Wiley Blackwell, vol. 30(1), pages 69-105, January.
    16. Briance Mascarenhas & David A. Aaker, 1989. "Mobility barriers and strategic groups," Strategic Management Journal, Wiley Blackwell, vol. 10(5), pages 475-485, September.
    17. Oster, Sharon M, 1982. "Intraindustry Structure and the Ease of Strategic Change," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 376-383, August.
    18. James P. Walsh, 1995. "Managerial and Organizational Cognition: Notes from a Trip Down Memory Lane," Organization Science, INFORMS, vol. 6(3), pages 280-321, June.
    19. Karel Cool & Dan Schendel, 1988. "Performance differences among strategic group members," Strategic Management Journal, Wiley Blackwell, vol. 9(3), pages 207-223, May.
    20. Moshe Farjoun & Linda Lai, 1997. "Similarity Judgments In Strategy Formulation: Role, Process And Implications," Strategic Management Journal, Wiley Blackwell, vol. 18(4), pages 255-273, April.
    21. Cho, Theresa S., 2006. "The effects of executive turnover on top management team's environmental scanning behavior after an environmental change," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1142-1150, October.
    22. Kathryn Rudie Harrigan, 1985. "An application of clustering for strategic group analysis," Strategic Management Journal, Wiley Blackwell, vol. 6(1), pages 55-73, January.
    23. Wright, Peter & Kroll, Mark & Pray, Bevalee & Lado, Augustine, 1995. "Strategic orientations, competitive advantage, and business performance," Journal of Business Research, Elsevier, vol. 33(2), pages 143-151, June.
    24. Gerry McNamara & David L. Deephouse & Rebecca A. Luce, 2003. "Competitive positioning within and across a strategic group structure: the performance of core, secondary, and solitary firms," Strategic Management Journal, Wiley Blackwell, vol. 24(2), pages 161-181, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Toshiyuki Sueyoshi & Youngbok Ryu, 2020. "Performance Assessment of the Semiconductor Industry: Measured by DEA Environmental Assessment," Energies, MDPI, vol. 13(22), pages 1-24, November.
    2. 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.
    3. Cheng, Shu-Ling & Chang, Hae-Ching, 2010. "Cognitive complexity implications for research on sustainable competitive advantage," Journal of Business Research, Elsevier, vol. 63(1), pages 67-70, January.
    4. Ferdaws Ezzi & Mouhamed Ali Azouzi & Anis Jarboui, 2016. "Does CEO emotional intelligence affect the performance of the diversifiable companies?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1230958-123, December.
    5. Bastian Grühn & Steffen Strese & Tessa C. Flatten & Nikolai A. Jaeger & Malte Brettel, 2017. "Temporal Change Patterns of Entrepreneurial Orientation: A Longitudinal Investigation of CEO Successions," Entrepreneurship Theory and Practice, , vol. 41(4), pages 591-619, July.
    6. Linan Lei & Xiaobo Wu, 2022. "Thinking like a specialist or a generalist? Evidence from hidden champions in China," Asian Business & Management, Palgrave Macmillan, vol. 21(1), pages 25-57, February.
    7. 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.

    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. 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.
    4. 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.
    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. 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.
    7. 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.
    8. 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.
    9. Hałaj, Grzegorz & Żochowski, Dawid, 2006. "Strategic groups in Polish banking sector and financial stability," MPRA Paper 326, University Library of Munich, Germany.
    10. 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.
    11. Carroll, Charles, 1998. "Interdependence and the social structure of rivalry," Research Report 98B24, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    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. 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.
    14. repec:dgr:rugsom:98b24 is not listed on IDEAS
    15. Francisco Espasandín Bustelo & Cristóbal Casanueva Rocha & Juan Domingo Ganaza Vargas, 2004. "Las nuevas tecnologías de la información y la comunicación en la economía social andaluza," CIRIEC-España, revista de economía pública, social y cooperativa, CIRIEC-España, issue 49, pages 193-215, August.
    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. 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.
    18. Kyung Min Park, 2007. "Antecedents of Convergence and Divergence in Strategic Positioning: The Effects of Performance and Aspiration on the Direction of Strategic Change," Organization Science, INFORMS, vol. 18(3), pages 386-402, June.
    19. 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.
    20. Cheng, Shu-Ling & Chang, Hae-Ching, 2010. "Cognitive complexity implications for research on sustainable competitive advantage," Journal of Business Research, Elsevier, vol. 63(1), pages 67-70, January.
    21. Jae Wook Yoo & Richard Reed & Shung Jae Shin & David J. Lemak, 2009. "Strategic Choice and Performance in Late Movers: Influence of the Top Management Team's External Ties," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 308-335, March.

    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:62:y:2009:i:12:p:1311-1320. 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.