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Strategic orientations in a competitive context: The role of strategic orientation differentiation

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  • Rohit Deshpandé
  • Amir Grinstein
  • Elie Ofek

Abstract

Strategic orientation studies often provide ‘best practice prescriptions’ for firms in a given context—matching orientations to environmental conditions. While this perspective has value, empirical results are equivocal and an important reality has been overlooked: the fact that a firm’s decision to emphasize a particular strategic orientation can depend on its competitors’ orientation choices. Based on two studies of customer, technology and production orientations, we show that the emphasis a firm places on a strategic orientation depends on how competitive its environment is. When competition becomes less intense, firms place emphasis on the strategic orientation that matches the dominant environmental condition (e.g., technology orientation when technology turbulence is high). However, as competition intensifies, firms tend to follow strategic orientation differentiation: de-emphasizing the strategic orientation their main rival is emphasizing. Finally, we show that the greater the competitive intensity, the greater the contribution strategic orientation differentiation has on business performance. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Rohit Deshpandé & Amir Grinstein & Elie Ofek, 2012. "Strategic orientations in a competitive context: The role of strategic orientation differentiation," Marketing Letters, Springer, vol. 23(3), pages 629-643, September.
    • Handle: RePEc:kap:mktlet:v:23:y:2012:i:3:p:629-643
    DOI: 10.1007/s11002-012-9167-4
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    References listed on IDEAS

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    Cited by:

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    2. Ya-na Wang & Lifu Jin & Hanping Mao, 2019. "Farmer Cooperatives’ Intention to Adopt Agricultural Information Technology—Mediating Effects of Attitude," Information Systems Frontiers, Springer, vol. 21(3), pages 565-580, June.
    3. Adomako, Samuel & Amankwah-Amoah, Joseph & Ahsan, Mujtaba, 2023. "Base of the pyramid orientation, imitation orientation and new product performance in an emerging market," Technovation, Elsevier, vol. 119(C).
    4. Samuel Adomako & Kwabena Frimpong & Joseph Amankwah-Amoah & Francis Donbesuur & Robert A. Opoku, 2021. "Strategic Decision Speed and International Performance: The Roles of Competitive Intensity, Resource Flexibility, and Structural Organicity," Management International Review, Springer, vol. 61(1), pages 27-55, March.
    5. Wales, William & Beliaeva, Tatiana & Shirokova, Galina & Stettler, Tatiana R. & Gupta, Vishal K., 2020. "Orienting toward sales growth? Decomposing the variance attributed to three fundamental organizational strategic orientations," Journal of Business Research, Elsevier, vol. 109(C), pages 498-510.

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