Does the implementation of a combination competitive strategy yield incremental performance benefits? A new perspective from a transition economy in Sub-Saharan Africa

By Moses Acquaah, Masoud Yasai-Ardekani. 2008

215 citations recorded by the source corpus.

This study examines the performance implications of implementing generic competitive strategies, and whether the implementation of a combination competitive strategy yields an incremental performance benefit over a single generic competitive strategy using data from Ghana, a Sub-Saharan African economy implementing economic liberalization policies. Two types of singular generic competitive strategies are analyzed: cost-leadership and differentiation. Our findings from the overall sample provide support for the viability and profitability of implementing coherent generic competitive strategies -- cost-leadership, differentiation, and the combination of the singular strategies. The results further indicate that firms implementing a combination strategy tend to experience substantial incremental performance benefits over those implementing only the cost-leadership strategy. However, the incremental performance benefits to firms implementing a combination strategy do not significantly differ from the performance of firms implementing only the differentiation strategy. Furthermore, firms that implement a coherent competitive strategy (combination, cost-leadership, or differentiation) tend to gain considerable incremental performance benefits over firms that are stuck-in-the-middle. Implications are discussed.

Subfields: Accounting, Business and International Management, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/23ce2b59c4399447b49f1a4a27d28ee4c6a77116

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Citations in the corpus

Linkages among business strategy, uncertainty and performance in the hospitality industry: Evidence from an emerging economy (2013, unknown): “Following Porter’s admonition, hotels in Turkey seeking to combine approaches are likely to end up “stuck in the middle,” a finding supported by previous work (Acquaah and Yasai-Ardekani, 2008; Kim et al., 2004).”
Differentiation strategies in emerging markets: The case of Latin American agribusinesses (2014, background): “Some authors argue that Porter's generic strategies are a valid construct but that they are not necessarily exclusionary, as companies may implement both cost leadership and differentiation simultaneously (Acquaah & Yasai-Ardekani, 2008; Pertusa et al., 2009).”
The Relationship between Competitive Strategy and Firm Performance in Micro and Small Businesses in Ghana: The Moderating Role of Managerial and Marketing Capabilities (2015, background): “Some of the marketing techniques include advertising and promotion, branding and brand management, exceptional customer service, and control of channels of distribution (Acquaah & Yasai-Ardekani, 2008).”
Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance (2012, background): “(Acquaah and Yasai-Ardekani, 2008; Kim et al., 2004; Leitner and Güldenberg, 2009; Miller and Dess, 1993; Pertusa-Ortega et al., 2009).”
When do Dynamic Capabilities Lead to Competitive Advantage? The Importance of Strategic Fit (2018, unknown): “…orientation continuously improved by dynamic capabilities can not only help firms keep up with changes, but also increase demand for firms’ products and thus increase economies of scale and learning effects, both of which improve a low-cost position (Acquaah and Yasai-Ardekani, 2008; Hill, 1988).”