IDEAS home Printed from https://ideas.repec.org/a/spr/futbus/v6y2020i1d10.1186_s43093-020-0009-1.html
   My bibliography  Save this article

Linking Porter’s generic strategies to firm performance

Author

Listed:
  • Xhavit Islami

    (Saints Cyril and Methodius University in Skopje
    Department of Management, Faculty of Economics, University Kadri Zeka in Gjilan)

  • Naim Mustafa

    (Department of Management, Faculty of Economics, University Kadri Zeka in Gjilan)

  • Marija Topuzovska Latkovikj

    (Saints Cyril and Methodius University in Skopje)

Abstract

In this study, the significance of using Porter’s generic strategies in firms that operate in competitive environments is investigated. The aim is to indicate the effects of Porter’s generic strategies (low-cost strategy, differentiation strategy, and focus strategy) on firm performance. The questionnaires of the study have been prepared, the responses have been obtained, and the econometric model is constructed to measure these relationships. Findings stemmed by data that were taken from 113 firms that operate in the Republic of Kosovo. t test, Pearson’s correlation analysis, and multivariate regression analysis were used to provide testing of hypotheses. Econometric results suggest that pursuing differentiation strategy provides higher firm performance compared to two other Porter’s generic strategies (low-cost strategy or focus strategy) that have a positive impact as well.

Suggested Citation

  • Xhavit Islami & Naim Mustafa & Marija Topuzovska Latkovikj, 2020. "Linking Porter’s generic strategies to firm performance," Future Business Journal, Springer, vol. 6(1), pages 1-15, December.
    • Handle: RePEc:spr:futbus:v:6:y:2020:i:1:d:10.1186_s43093-020-0009-1
    DOI: 10.1186/s43093-020-0009-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s43093-020-0009-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s43093-020-0009-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Jon M. Hawes & William F. Crittenden, 1984. "A taxonomy of competitive retailing strategies," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 275-287, July.
    2. Patricia McDougall & Richard B. Robinson, 1990. "New venture strategies: An empirical identification of eight ‘archetypes’ of competitive strategies for entry," Strategic Management Journal, Wiley Blackwell, vol. 11(6), pages 447-467, October.
    3. Aneel Karnani, 1984. "Generic competitive strategies—An analytical approach," Strategic Management Journal, Wiley Blackwell, vol. 5(4), pages 367-380, October.
    4. Theodore T. Herbert & Helen Deresky, 1987. "Generic strategies: An empirical investigation of typology validity and strategy content," Strategic Management Journal, Wiley Blackwell, vol. 8(2), pages 135-147, March.
    5. Levinthal, D.A. & Fichman, M., 1991. "Honeymoons and the Liability of Adolescence : A New Perspective on Duration Dependence in Social Organizational Relationships," GSIA Working Papers 1991-34, Carnegie Mellon University, Tepper School of Business.
    6. Roderick E. White, 1986. "Generic business strategies, organizational context and performance: An empirical investigation," Strategic Management Journal, Wiley Blackwell, vol. 7(3), pages 217-231, May.
    7. Manuel Guisado-González & Manuel Guisado-Tato & Carlos Ferro-Soto, 2013. "Business strategy and enterprises cooperation agreements in research and development," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 7(1), pages 1-22.
    8. Nancy M. Carter & Timothy M. Stearns & Paul D. Reynolds & Brenda A. Miller, 1994. "New venture strategies: Theory development with an empirical base," Strategic Management Journal, Wiley Blackwell, vol. 15(1), pages 21-41, January.
    9. Zahra, Shaker A., 1993. "Environment, corporate entrepreneurship, and financial performance: A taxonomic approach," Journal of Business Venturing, Elsevier, vol. 8(4), pages 319-340, July.
    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. Pattama Suriyakul Na Ayudhya, 2021. "Enhancing the Competitive Advantage of the Germinated Parboiled Rice," GATR Journals gjbssr593, Global Academy of Training and Research (GATR) Enterprise.
    2. Jing Wang & Zeyu Xing & Rui Zhang, 2023. "AI technology application and employee responsibility," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-17, December.
    3. Marc Dressler, 2023. "Generic strategic profiling of entrepreneurial SMEs – environmentalism as hygiene factor," International Entrepreneurship and Management Journal, Springer, vol. 19(1), pages 121-150, March.
    4. Ismail Abukar Omar & Kibe Lucy Wairimu, 2022. "Analysis of Differentiation Strategy on Growth of Small and Medium Enterprises in Yagshid District Mogadishu Somalia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(6), pages 96-99, June.
    5. Margarita Išoraitė & Irena Alperytė, 2022. "How Blue Ocean Strategy helps innovate social inclusion," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 10(2), pages 239-254, December.
    6. Abbas, Jaffar & Balsalobre-Lorente, Daniel & Amjid, Muhammad Asif & Al-Sulaiti, Khalid & Al-Sulaiti, Ibrahim & Aldereai, Osama, 2024. "Financial innovation and digitalization promote business growth: The interplay of green technology innovation, product market competition and firm performance," Innovation and Green Development, Elsevier, vol. 3(1).
    7. Sehrish Atif, 2023. "Mapping circular economy principles and servitisation approach in business model canvas: an integrated literature review," Future Business Journal, Springer, vol. 9(1), pages 1-21, December.
    8. Mercedes Rubio-Andrés & Jorge Linuesa-Langreo & Santiago Gutiérrez-Broncano & Miguel Ángel Sastre-Castillo, 2024. "How to improve market performance through competitive strategy and innovation in entrepreneurial SMEs," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 1677-1706, September.
    9. Arshinder Singh Chawla & Neha Gahlawat & Sandeep Kumar & Subhash C. Kundu & Homesh Kundu, 2023. "Strategic HRM and Firm Performance: Mediating Role of Knowledge Management Capacity and Innovation Performance," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 48(1), pages 98-117, February.
    10. Mohamed ID BAHA & Mohamed Eddani, 2024. "Impact des Technologies Numériques sur la performance des Petites et Moyennes Entreprises marocaines : cas des entreprises de la région « Souss Massa »," Post-Print hal-04563306, HAL.
    11. Julen Castillo‐Apraiz & Jesus Matey, 2020. "Customizing competitive strategy to entry timing: Implications for firm performance in the pharmaceutical industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 976-985, September.
    12. Wanjiku Joseph Thukia, 2022. "Differentiation strategies and tourism performance interplay," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(10), pages 13-23, December.
    13. Jane Wandia Wanjogo & Stephen Makau Muathe, 2022. "Gaining competitive advantage through generic strategies in medical training colleges in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 29-41, March.

    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. Sharda, Kirti, 2009. "Strategic Orientation of Outsourcing Firms:Demystifying Key Differentiators," IIMA Working Papers WP2009-12-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Jorge Mejia & Anandasivam Gopal & Michael Trusov, 2020. "Deal or No Deal? Online Deals, Retailer Heterogeneity, and Brand Evaluations in a Competitive Environment," Information Systems Research, INFORMS, vol. 31(4), pages 1087-1106, December.
    3. Carlos Díaz-Santamaría & Jacques Bulchand-Gidumal, 2021. "Econometric Estimation of the Factors That Influence Startup Success," Sustainability, MDPI, vol. 13(4), pages 1-14, February.
    4. Kirti Sharda, 2010. "Strategic Orientation of Outsourcing Firms: Demystifying Key Differentiators," Working Papers id:2671, eSocialSciences.
    5. 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.
    6. Stearns, Timothy M. & Carter, Nancy M. & Reynolds, Paul D. & Williams, Mary L., 1995. "New firm survival: Industry, strategy, and location," Journal of Business Venturing, Elsevier, vol. 10(1), pages 23-42, January.
    7. Johan Bruneel & Els Van de Velde & Bart Clarysse, 2013. "Impact of the Type of Corporate Spin–Off on Growth," Entrepreneurship Theory and Practice, , vol. 37(4), pages 943-959, July.
    8. Carter, Nancy M. & Williams, Mary & Reynolds, Paul D., 1997. "Discontinuance among new firms in retail: The influence of initial resources, strategy, and gender," Journal of Business Venturing, Elsevier, vol. 12(2), pages 125-145, March.
    9. Joern Block & Karsten Kohn & Danny Miller & Katrin Ullrich, 2015. "Necessity entrepreneurship and competitive strategy," Small Business Economics, Springer, vol. 44(1), pages 37-54, January.
    10. Block, Jörn H. & Fisch, Christian O. & Hahn, Alexander & Sandner, Philipp G., 2015. "Why do SMEs file trademarks? Insights from firms in innovative industries," Research Policy, Elsevier, vol. 44(10), pages 1915-1930.
    11. J. Bruneel & B. Clarysse & M. Wright, 2009. "Linking Entrepreneurial Strategy and Firm Growth," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/571, Ghent University, Faculty of Economics and Business Administration.
    12. K. Ramachandran & Sougata Ray, 2006. "Networking and New Venture Resource Strategies," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 15(2), pages 145-168, September.
    13. Park, Sangmoon & Bae, Zong-Tae, 2004. "New venture strategies in a developing country: Identifying a typology and examining growth patterns through case studies," Journal of Business Venturing, Elsevier, vol. 19(1), pages 81-105, January.
    14. Ramakrishnan, K., 2010. "The competitive response of small, independent retailers to organized retail: Study in an emerging economy," Journal of Retailing and Consumer Services, Elsevier, vol. 17(4), pages 251-258.
    15. Karl-Heinz Leitner & Stefan Güldenberg, 2010. "Generic strategies and firm performance in SMEs: a longitudinal study of Austrian SMEs," Small Business Economics, Springer, vol. 35(2), pages 169-189, September.
    16. Gao, Yang & Ge, Baoshan & Lang, Xiangxiang & Xu, Xiaobo, 2018. "Impacts of proactive orientation and entrepreneurial strategy on entrepreneurial performance: An empirical research," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 178-187.
    17. Gary Kleinman & Dan Palmon, 2000. "A Negotiation-Oriented Model of Auditor-Client Relationships," Group Decision and Negotiation, Springer, vol. 9(1), pages 17-45, January.
    18. Hussin J. Hejase & Bassam Hamdar & Ziad Haddad & Mariam Chaaya & Ale J. Hejase & Nouri Beyrouti, 2015. "Corporate Entrepreneurship in Lebanon: An Exploratory Research," Quarterly Journal of Business Studies, Research Academy of Social Sciences, vol. 1(3), pages 94-118.
    19. Isaksson, Olov H.D. & Simeth, Markus & Seifert, Ralf W., 2016. "Knowledge spillovers in the supply chain: Evidence from the high tech sectors," Research Policy, Elsevier, vol. 45(3), pages 699-706.
    20. Zahra, Shaker A., 1996. "Technology strategy and new venture performance: A study of corporate-sponsored and independent biotechnology ventures," Journal of Business Venturing, Elsevier, vol. 11(4), pages 289-321, July.

    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:spr:futbus:v:6:y:2020:i:1:d:10.1186_s43093-020-0009-1. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.