Impacts of Competitive Position on Export Propensity and Intensity: An Empirical Study of Manufacturing Firms in China

We examine the impacts of competitive industry position on firms’ export propensity and intensity in China. Drawing on the resource-based view and the structure-conduct-performance paradigm of firm behavior, we investigate whether firms with competitive industry position through cost leadership or differentiation strategy have different export behaviors. We use a longitudinal data of 213,662 manufacturing firms in China from 1998 to 2005 to show that firms that have developed competitive advantages in the domestic market are more likely to export and have higher levels of export intensity. Indigenous and foreign manufacturing firms exhibit different patterns of export behaviors. Foreign firms with differentiation advantages focus on local market expansion instead of seeking opportunity in export markets.

Exploring the imperative for purchasing strategic alignment to drive purchasing maturity

This study challenges purchasing literature on its lacking consideration of contextual factors, resulting in generic recommendations that oversimplify reality. Through a systematic review across purchasing maturity, purchasing strategic alignment and strategic purchasing literature, core conceptualisations are examined to understand underlying premises and the impact on performance links. This analysis highlights issues and unarticulated assumptions that limit the generalisability of any relationships with performance. The paper proposes a framework for future research that conceptualises alignment as a smaller gap between the current and target category maturity profile

Generic strategies and financial performance persistence in the bank sector in Indonesia / Etikah Karyani and Hilda R. Rossieta.

This study investigates the relationship between the bank strategic positioning and performance. A central question in the management literature has been to identify the sources of competitive advantage that allow firms to attain and persistent superior performance over their competitors. Bank can build competitive advantages by following either a cost leadership or a differentiation strategy. Bank adopting a cost leadership strategy principally attain advantages based on operational efficiency, and hence the performance of such firms should more persist over time than other bank adopting differentiation strategy. This study documents an empirical investigation of this premise using a sample of 216 firm-years over the period 2009-2013. This study details the development of constructs using audited financial-level archival data to capture a bank's strategic positioning. These constructs are then used in empirical models that explore the persistence of bank performance. Using confirmatory factor analysis, the results of these models estimation indicate that although both cost leadership and differentiation strategies have a positive effect on contemporaneous performance, only the efficiency strategy allows a bank to achieve and maintain superior performance in the future

Business strategy and earnings management: financial versus non-financial firms

This study investigates the impact of business strategy on earnings management practices for financial and non-financial firms in Oman. To assess the research objective, 430 firm-year observations from 2015 to 2019 were employed in the study. Using regression analysis, the findings suggest that differentiation strategy positively affects earnings management in financial sector firms. In addition, cost leadership strategy positively affects earnings management in non-financial sector firms. This indicates that business strategy is associated with company leaders managing their earnings while they are trying to survive through competition. These findings are useful for regulators, as they can introduce mechanisms to curb earnings management practices and instil more faith in investors

Generic strategies and financial performance persistence: study in Indonesia banking

This study investigates the relationship between the bank strategic positioning and performance.A central question in the management literature has been to identify the sources of competitive advantage that allow firms to attain and persistent superior performance over their competitors.Banks can build competitive advantages by following either a cost leadership or a differentiation strategy.Banks adopting a cost leadership strategy principally attain advantages based on operational efficiency, and hence the performance of such firms should more persist over time than other bank adopting differentiation strategy.This study documents an empirical investigation of this premise using a sample of 216 firm-years over the period 2010-2013. This study details the development of constructs using audited financial-level archival data to capture a bank's strategic positioning.These constructs are then used in empirical models that explore the persistence of bank performance.Using confirmatory factor analysis, the results of these models estimation indicate that although both cost leadership and differentiation strategies have a positive effect on contemporaneous performance, only the efficiency strategy allows a bank to achieve and maintain superior performance in the future

Using text analytics to discover organizational congruences: A study of the Thai IT industry

Organizational congruence is a leading indicator for organizational adaptation and increasing relevant in technological disruptive environments. However, the congruence perspective is often investigated through another lens. Information technology (IT) literature is less familiar with this perspective. This study aims to raise awareness of the perspective among IT literature by strictly investigating constructs under the perspective. It postulated an investigation akin to a measure development under the congruence perspective. Data was collected from Thai IT industry and a combination of computeraided text analysis and traditional measure development were implemented. The data was preprocessed to ensure high quality and entered to measure modeling techniques. The results unveil four organizational congruence constructs. Three are first-level constructs: strategy consensus, operational congruence, and competitive congruence. One is second-level construct: organizational ambidexterity. Implications of this discovery are discussed. Limitations and future directions are recognized in the last section

Strategies affecting sustainable financial performance (A case study on southeast asian companies)

This study aims to find out the effect of cost leadership and differentiation strategies on sustainable financial performance, including which strategy has a more dominant effect. Sustainable financial performance is financial performance that can be achieved and enjoyed into the future, not just for temporary in a certain period. The sample includes public companies in the Southeast Asia region consisting of 395 companies during the period 2107-2020, with a total 1,580 observations. This study uses Structural Equation Modeling to analyze the data. The test results show that the cost leadership strategy has no effect on sustainable financial performance. In contrast, the differentiation strategy has a positive and significant effect on sustainable financial performance. The role of innovation is very important in achieving sustainability. This study proves that innovation moderates the effect of the two strategies on sustainable financial performance. This study failed to prove which strategy has a more dominant effect due to the different results of the effect of the two strategies on sustainable financial performance

Impacts of Competitive Position on Export Propensity and Intensity: An Empirical Study of Manufacturing Firms in China

We examine the impacts of competitive industry position on firms’ export propensity and intensity in China. Drawing on the resource-based view and the structure-conduct-performance paradigm of firm behavior, we investigate whether firms with competitive industry position through cost leadership or differentiation strategy have different export behaviors. We use a longitudinal data of 213,662 manufacturing firms in China from 1998 to 2005 to show that firms that have developed competitive advantages in the domestic market are more likely to export and have higher levels of export intensity. Indigenous and foreign manufacturing firms exhibit different patterns of export behaviors. Foreign firms with differentiation advantages focus on local market expansion instead of seeking opportunity in export markets

Impacts of Competitive Position on Export Propensity and Intensity: An Empirical Study of Manufacturing Firms in China

We examine the impacts of competitive industry position on firms’ export propensity and intensity in China. Drawing on the resource-based view and the structure-conduct-performance paradigm of firm behavior, we investigate whether firms with competitive industry position through cost leadership or differentiation strategy have different export behaviors. We use a longitudinal data of 213,662 manufacturing firms in China from 1998 to 2005 to show that firms that have developed competitive advantages in the domestic market are more likely to export and have higher levels of export intensity. Indigenous and foreign manufacturing firms exhibit different patterns of export behaviors. Foreign firms with differentiation advantages focus on local market expansion instead of seeking opportunity in export markets

Business Strategy, State-Owned Equity and Cost Stickiness: Evidence from Chinese Firms

This paper investigates the relationship between business strategy and cost stickiness under different ownership. Using the data from listed firms in China from 2002 to 2015, we find that first, firms with different strategies exhibit different cost behavior. The cost stickiness of choosing a differentiation strategy is higher than that of choosing a low-cost strategy. Second, management expectations will affect cost stickiness. Optimistic expectations will increase cost stickiness, while pessimistic expectations will reduce cost stickiness. Third, management expectations can adjust the relationship between business strategy and cost stickiness in terms of government-created advantages (GCAs). If management expectations tend to be optimistic, the cost stickiness is higher with a differentiation strategy than with a low-cost strategy. If management expectations tend to be pessimistic, then cost stickiness is higher with a low-cost strategy than with a differentiation strategy. Finally, the state-owned equity affects the extent of the effect of a differentiation strategy on cost stickiness. State-owned firms, which receive more GCAs than non-state-owned firms, have stronger cost stickiness than non-state-owned firms, even if both categories of firms use more differentiation strategy