Competitive strategies and business performance: evidence from the adhesives and sealants industry

Abstract

Synthesizes the contributions of a number of scholars on competitive strategies. Discusses several imperfections in the literature. Submits three propositions for empirical testing in a fragmented industry ‐ the adhesives and sealants industry. The results of the investigation suggest that business units which compete with the low cost strategy and differentiation strategy have higher ROIs than enterprises which compete with low costs only or differentiation only. As a group, however, the high profit firms are not significantly larger in size than the groups of low profit companies studied. Thus, what is elaborated is that competing with both strategies may involve benefits that are not based on advantages of larger market shares and scale economies.

Citation

Helms, M.M., Dibrell, C. and Wright, P. (1997), "Competitive strategies and business performance: evidence from the adhesives and sealants industry", Management Decision, Vol. 35 No. 9, pp. 689-703. https://doi.org/10.1108/00251749710186531