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The resource-based view of the firm and strategic groups research are two of the most investigated frameworks in strategic management. Historically, assumptions behind these two views have seemingly put them at odds. The resource-based view of the firm argues that sustained competitive advantage is best attained when firms have unique resources, while strategic groups research argues that a number of firms within the same industry can achieve sustained profitability with strategies that are similar to one another, but distinct from other industry members. The two views focus on different levels of analysis and each largely ignores the other’s focal level. Yet neither offers any propositions that are incompatible with the tenets of the other. Thus, conceptual integration that crosses levels of analysis is possible and potentially fruitful. Indeed, some strategic groups research has begun to bridge the gap between these two theories by suggesting that firm differences exist both within and between strategic groups. This article adopts a multi-level view by developing propositions concerning contingencies when firm differences, group processes, or both may lead to sustained competitive advantage. Implications for practitioners as well as suggestions for future theory building and empirical tests are also discussed.

The purpose of this paper is to examine and analyze the significant qualitative factors that affect the financial performance of financial firms. The authors argue that those factors can be used as “indices of identity” or external cues that help financial firms enhance their relative position in the marketplace. This can be done by focusing on the indices that are highly and positively associated with financial performance measures. This is a practical approach since the financial products are characterized by intrinsic intangibility.

The researchers empirically test this framework in a sample of the European banking industry. The methodology utilizes the benefits of the “content analysis,” that focuses on the critical observed elements of firm identity as published in the most recognized publications. The indices of identity examined in this paper are reputation for clients, age, CEO, size, country of origin, geographic spread, and profits. Measures of financial performance include: return on assets, non‐performing loans/total loans, shareholder equity/total assets and deposits/total assets.

The results show that indices of identity are positively related to corporate financial performance and thus can effectively help firms be well recognized by other actors in the marketplace.

The paper contributes to the literature in two ways. First, the paper shows how firm's indices of identity can be quantified through the use of content analysis. Second, the paper creates an association between the indices of identity and financial performance. This association offers a quantitative approach that shows the possibilities of overcoming the problems of intangibility in the marketplace.

In this paper, we explore the conditions under which organizations that compete in both market and non-market domains might engage in collective strategy. We study low-power FM radio activists in the U.S., who employed a collective strategy both within and across geographic communities to gain the right to broadcast in low-power broadcast spectra. By comparing and contrasting two stages of the micro-radio movement, we argue that, under certain conditions, for collective strategy to be viable, organizations competing on the dimensions of both ideology and resources must recognize themselves as members of an identity group, based on their common struggle against a stronger, more salient enemy. We highlight the role of collective strategies in the processes of organizational ecology, and discuss the generalizability of our argument.

This paper presents the results of exploratory research aimed at understanding how firms operating in regional clusters use the clusters' collective identity in their external communication and combine it with the communication of their individual identity. In particular, the paper aims to detect different behaviors among different types of firms.

A quantitative exploratory content analysis is performed on the websites of the wineries of the Franciacorta wine cluster (Italy). A two‐step cluster analysis is used to identify differences in identity communications.

The results suggest the existence of two groups manifesting different patterns of identity communication. Larger firms communicate their individual identity through symbols, but they consistently communicate collective values. The other group (on average smaller firms, but including some of the biggest) seems to exploit collective identity symbols, without giving prominence to collective values.

This study provides an understanding of how companies communicate collective symbols and values promoted by cooperative institutions; this understanding can be beneficial for future developments of collective branding projects.

This research contributes to broadening the debate on cluster identity as a strategic resource by adopting a communication perspective as well as providing empirical data on how different types of clusters' firms actually combine a collective cluster's identity and their firm's identity to shape their external image.

In this study, we develop understanding of factors that shape the propensity of market incumbents to collaborate in response to the threat posed by new market entrants. We are particularly interested in instances when a market's competitive structure becomes unsettled by new entrants who engage in nonconforming strategic tactics. In such situations, we propose two factors – strategic similarity among competitors and market-share instability – will systematically shape competitors' collaborative response to new entrants. To test our theory, we use data on strategic tactics and collaborative dynamics in the US airline industry from 1989 to 2010. We demonstrate that greater strategic similarity among a market's incumbents increases the likelihood of cooperation in response to the threat of a nonconforming new entrant, while greater market-share instability reduces cooperative response. Through this study, we extend existing understanding of the contextual circumstances under which established competitors recognize their mutual interests and band together.

The purpose of this paper is to investigate the strategic profiles and differences across globally leading business schools.

This paper used the concepts of strategic group identity and domain consensus to examine the differences across the business schools. Cluster analysis is applied to identify strategic groups among 82 global schools from the USA, Canada, Europe, Asia and Australia.

Ten strategic groups – essentially similar strategic “clusters” – are identified by the clustering analysis. The results demonstrate that the groups do have different resource and reputation profiles.

Future research can improve the research base by collecting data on financial variables such as endowments, providing metrics by which a school's efficiency can be assessed, or collecting longitudinal data. Furthermore, a form of cognitive strategic mapping could be achieved through survey and interview mechanisms in order to highlight the perspectives of deans and senior managers of business schools.

This research contributes to the literature in two aspects. First, this research provides a clear mapping of the strategic “bands” across globally branded business schools. The results are highly timely in today's debate about the nature and future of business schools. Second, this research demonstrates that strategic group theory can be applied in the business school context.

The paper describes six major approaches within strategic groups research: the industrial organization perspective (the IO-view), the strategic choice perspective, the strategy types perspective, the cognitive perspective, the customer perspective, and the business definition perspective. The two most promising perspectives to make real advances in the strategic management discipline seem to be the cognitive view and the business definition perspective. The purpose of a grouping based on business definitions is to provide an insight, as objective as possible, of the industry’s substructure which also corroborates with the cognitive maps of the industry which the CEOs have in mind. From a practical point of view, the classification of firms in groups based on commonality in business definition (buyer scope, product scope, geographical scope and degree of vertical integration), allows managers to compare their own firms with comparable firms (the firms within the same group). The research concerning strategic groups in the Belgian beer brewing sector and the Belgian electrical wholesale sector is presented. The major problems within the strategic groups research are discussed.

Research on strategic industry groups provides numerous examples of the tensions between theory and methodology in strategic management research. After an initial explosion of largely non-theoretical, methods-driven studies led to mounting criticisms, researchers recognized the need for more theoretical guidance concerning the nature of groups and their potential influences on firm performance. This refocusing on theory has produced different research streams, each with its own methodological concerns. This chapter reviews these developments with the objective of understanding how researchers balance theory and methods in current research.

For a long time, researchers have stressed the importance of identity for collaborative supply relationships. Accordingly, it has been proposed that supply relationships may be efficiently managed by establishing a shared collective identity among partners. However, this strategy may challenge the partners' individual distinctiveness and thus lead to adversarial relationship outcomes. In this article, it is argued how and when establishing an intergroup relational identity may be a better choice than building a collective identity.

The conceptual research is based on an analysis of previous literature. Relational identity theorizing and the theory of intergroup leadership are applied to build on and extend previous views on identity in interorganizational contexts.

It is proposed that when supply chain actors are subject to identity threats in collaborative supply relationships, such threats are driven by the imbalance of power between or among the parties. Therefore, establishing an intergroup relational identity should be preferred over a collective identity in situations characterized by a high identity threat.

Future studies could support this article's theoretical suggestions with empirical evidence.

Intergroup relational identity preserves the distinctiveness of all parties involved in a collaborative relationship and is based on their individual contributions. Managers could support a collaborative environment and promote a shared vision between or among organizations through appropriate rhetoric.

This study contributes to an understanding of the relational aspects of interorganizational behavior by adapting social psychological theories to this area of research.

This article aims to explore how understanding the challenges faced by companies' attempts to create competitive advantage through their human resources and HRM practices can be enhanced by insights into the concept of strategic groups within industries. Based within the international hotel industry, this study identifies how strategic groups emerge in the analysis of HRM practices and approaches. It sheds light on the value of strategic groups as a way of readdressing the focus on firm and industry level analyses.

Senior human resource executives and their teams across eight international hotel companies (IHCs) were interviewed in corporate and regional headquarters, with observations and the collection of company documentation complementing the interviews.

The findings demonstrate that strategic groups emerge from analysis of the HRM practices and strategies used to develop hotel general managers (HGMs) as strategic human resources in the international hotel industry. The value of understanding industry structures and dynamics and intermediary levels of analysis are apparent where specific industries place occupational constraints on their managerial resources and limit the range of strategies and expansion modes companies can adopt.

This study indicates that further research on strategic groups will enhance the theoretical understanding of strategic human resource management and specifically the forces that act to constrain the achievement of competitive advantage through human resources. A limitation of this study is the dependence on the human resource divisions' perspectives on realising international expansion ambitions in the hotel industry.

This study has implications for companies' engagement with their executives' perceptions of opportunities and threats, and suggests companies will struggle to achieve competitive advantage where such perceptions are consistent with their competitors.

Developments in strategic human resource management have relied on the conceptual and theoretical developments in strategic management, however, an understanding of the impact of strategic groups and their shaping of SHRM has not been previously explored.