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It has been suggested that to be successful in the current global economy with increased competition and ever changing markets, especially in the post-crisis context, firms need to focus more on innovation in exploring new ideas and designing new products to develop new markets than on cost-cutting strategies to maintain cost leadership in old markets. However, because of the lack of micro data, this conjecture has not been systematically evaluated. This paper aims to fill this important void by studying the economic performance associated with these two different business strategies using Canadian micro data.

The main data for our analysis are from the Survey of Innovation and Business Strategy (2009 and 2012) which is a sample-based survey of Canadian government. The authors used in this research regression models for the econometric analysis of the underlying factors for undertaking certain business strategies and how business strategies link to economic performance. They also used propensity score matching to ensure the group of firms with innovation strategy being comparable to that with cost-cutting.

The research shows that firms focusing on product innovation are indeed more productive than firms focusing on cost-cutting, although there is no evidence that these two different strategies make a difference in profitability. The first indication from the research has been that certain characteristics of Canadian firms are very useful predictors for firms to undertake product innovation. They are, among other things, the age of the firms, the single-establishment structure of the business and being multinationals.

This empirical research opens up many interesting avenues for future research. Some other variables could be integrated into the models to increase the rate of explained variance. Moreover, because this research is based only on the case of Canadian firms and for a relatively short period of four years after the 2008 crisis, an extension to other context and to a longer period of time should be interesting.

The research has confirmed that Canadian firms adopting long-term business strategies based on product innovation are more productive.

The results truly concur with the vision of the Government of Canada, like some other developed countries, on the importance of innovation and its policies in encouraging business innovation in driving the growth of the Canadian economy and improving the standard of living of country.

Mainly because of the lack of micro data, the existing researches have not provided solid evidence on why firms are choosing different business strategies when they are operating in the same business conditions and how the financial crisis has affected the undertaking of business strategies. They have not established a clear linkage between economic performance and different business strategies, although there has been some anecdotal evidence about their association. This study aims to bridge the knowledge gaps with theoretical and practical contributions.

The debate on human resource (HR) outsourcing is polarised. HR outsourcing is seen as an opportunity for the HR function by some and as a threat by others. The first view suggests that HR outsourcing is an instrument creating time for HR to become a strategic partner. The second view considers HR outsourcing as a cost‐cutting instrument gradually reducing HR staff. The purpose of this study is to examine whether HR outsourcing is a manifestation of a strategic HR focus, a cost‐cutting HR focus or both.

The sample is obtained from an economy‐wide, cross‐sectional survey. The data cover 1,264 organisations with ten employees or more.

Results indicate that organisations with a strong focus on HR cost‐cutting do not outsource more than organisations with a weaker focus on HR cost‐cutting. The analyses show a positive relationship between a strong focus on strategic human resource management (HRM) and the level of HR outsourcing.

First, this study examines the breadth of HR outsourcing. Further research might consider the depth of HR outsourcing. Second, as results are based on cross‐sectional data we cannot draw causal inferences. Finally, future research might focus on the impact of HR outsourcing on the organisation of the HR function and internal HR customer satisfaction.

HR outsourcing empowers the HR department. It frees up HR professionals to focus on strategic HRM.

HR outsourcing has been heavily debated. Yet, empirical research into the impact on the HR function is extremely limited. This study helps to fill this gap.

This study aims to examine the development of dynamic capabilities and their effect on the competitive advantage of restaurants in 2009, one year after the beginning of the global financial crisis.

The restaurants were personally surveyed to discern the importance of proactive and reactive strategies for the organization. The resulting two organizational effects – cost cutting and the development of dynamic capabilities – were tested for their influence on competitive advantage.

The findings show that both proactive and reactive strategies reduce costs; however, only proactive strategies develop dynamic capabilities that improve competitive advantage.

The conclusions are drawn from a small sample of restaurants in Madrid, the capital of Spain. Given that Madrid enjoys a higher standard of living and greater business expenditures than other cities, the results may not be generalizable to the rest of the country or to other southern European capitals.

Managers must use proactive strategies for companies to survive during times of crisis. A focus on proactive strategies will improve a company’s competitive position.

Policy makers should support the development of proactive strategies and provide an adequate infrastructure of counseling and network creation.

To the best of our knowledge, no previous research specifically analyzes both the type of strategy deployed and its subsequent effect on dynamic capabilities and the consequences of the strategy on competitive advantage during a financial crisis.

Builds on the efforts of an earlier study to enhance marketers′ ability to evaluate earnings performance accurately by first presenting hands‐on illustrative examples of two approaches to adjusting the income statement for earnings shocks and estimating the earnings of core operations. Examines the impact on marketing managers of the “fallout” that may result from changes in management policies which are prompted by the perceptions of poor earnings performance. This fallout includes: challenges by upper management regarding the wisdom and effectiveness of the marketing strategy; marketers′ reduced ability to execute the marketing plan owing to cost‐cutting campaigns that result in reduced marketing expenditures (e.g. advertising and sales promotion expenditures); and higher projected rates of return (i.e. higher “hurdle rates”) required for investment proposals before they are considered acceptable. Concludes with the presentation of strategies which may be employed by marketers to respond to and negotiate with upper management when policy changes designed to cut operating and investment expenditures constrain marketers′ ability to execute marketing strategy aggressively and effectively.

Asda's impressive progress over the past few years has now brought them to the stage where they are achieving—from a relatively few 46 stores—4.3% of total grocery turnover, taking fifth place (excluding the co‐ops) in terms of relative market share. Faced like everybody else with inflationary pressures, they mounted a programme of comprehensive cost‐cutting and labour‐saving, looking particularly at caging, the use of racking in warehouse space, and the advantage of scheduled deliveries in both food and non‐food. This feature, based on an RDM interview with Asda's managing director, Peter Firmston‐Williams, charts their progress to date.

The history of business is full of ups and downs. The present (or past?) recession is worrying many businesses and people. Indications are that corporations and management have more to learn from this recession than from prior recessions. For one thing, increasing global competition has made business survival more difficult than before. Under the new conditions, many of the old ways of dealing with recessions or downturns cannot work; they may even debilitate firms using them. New means of surviving economic banes need to be considered. Examines some of those means, in particular: planning, cost‐cutting strategies, core strategy versus diversification, re‐structuring, post‐restructuring, and some positive aspects of an economic downturn.

Suggests that many Western managers find target costing hard to understand, gives an overview of the Japanese approach and explains three paths towards rational cost decrease: cost improvement, cost cutting and cost shifting. Emphasizes the importance of cost improvement in a total cost management (TCM) programme and the other strategies which should support it, e.g. comprehensiveness, integration, flexibility and dynamism. Recognizes that the weaknesses which may develop in a TCM programme can divert cost improvement into cost cutting or cost shifting but sees this as no more than a short‐term solution.

The average company spends 23 cents out of every dollar of revenue on overhead, yet most firms lack a plan or system for aligning the with their strategic goals. This paper aims to look at a strategic approach to overhead management.

The paper reframes how overhead can be categorized and assessed.

The paper finds that viewing overhead as an investment in a capability is the key to preventing wasteful stop‐and‐start cost‐cutting initiatives.

The paper presents a way to protect the critical capabilities of organizations that are likely to be at risk during cost‐cutting initiatives.

The paper offers a new framework for classifying what is spent on overhead and for evaluating the strategic logic of it, so that management can instill a new discipline to managing overhead.

Slimmed down and operating more efficiently after the recession, many companies are looking for ways to boost sales and grow their way to higher profits. While news of this renewed focus on growth is encouraging, a diminished role for cost management on the corporate agenda is alarming. The only thing certain about planning for growth is that it will cost money. Continuing to manage costs aggressively during periods of economic expansion is the most efficient way to fund that growth. Companies that want to grow and grow profitably must be relentless in finding ways to free up costs and capital and must reinvest those funds in their most promising growth opportunities. In this article, we argue that cost management should be closely aligned with, and made an explicit part of, corporate growth strategies, for the challenge is not only to lower costs, but also to ensure competitors are “out‐invested” on growth. We then suggest four principles for achieving this alignment. Our approach involves the use of ambitious sales and earnings growth targets, tailored cost‐reduction targets, selective cost cutting and improved organizational capabilities.