Strategy-performance relationships: A comparative analysis of pure, hybrid, and reactor strategies
Journal of Advances in Management Research
ISSN: 0972-7981
Article publication date: 2 October 2017
Issue publication date: 2 October 2017
Abstract
Purpose
The extant literature has challenged the original idea that pure strategy leads to superior performance. This shift has raised the question whether pure strategy is still superior to hybrid strategy? The purpose of this paper is to investigate the strategy-performance relationship in this context and the performance of pure, hybrid, and reactor strategies is compared.
Design/methodology/approach
Scoring method is used for identification of strategic types. ANOVA, univariate, and multivariate regression models are applied for empirical analysis using seven-year financial data of 307 Pakistani joint stock firms from 12 industries.
Findings
The results show that firms in Pakistan practice hybrid and reactor strategies rather than pure strategies. Overall, defending and analyzing strategies perform better than the prospecting strategies. However, the performance of the strategic types varies among industries and firm size. Strategy and firm size are the better predictors of firm performance.
Originality/value
The proposed methodology can be replicated to identify strategic groups and strategic orientations proposed by typological classifications when longitudinal studies are carried out. The process for identification of pure, hybrid, flexible, consistent, and reactor strategies is a key contribution to the literature.
Keywords
Citation
Anwar, J. and Hasnu, S.A.F. (2017), "Strategy-performance relationships: A comparative analysis of pure, hybrid, and reactor strategies", Journal of Advances in Management Research, Vol. 14 No. 4, pp. 446-465. https://doi.org/10.1108/JAMR-07-2016-0056
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited