Strategic purity: a multi-industry evaluation of pure versus hybrid business strategies
Strategic purity: a multi-industry evaluation of pure versus hybrid business strategies
Thornhill S., White R.E. Strategic Management Journal, May 2007, Vol. 28 No. 5, Start page: 553, No. of pages: 9
Purpose – To consider whether pursued of a pure business strategy leads to superior performance relative to a mixed or hybrid strategy. Design/methodology/approach – Notes Porter’s observation that businesses that combine generic strategies tend to get “stuck in the middle” and experience poorer performance. Points out that no consensus has emerged from empirical research in the 25 years since this assertion was originally made. Suggests that the ambiguous results are caused by the ways in which different studies have been designed, the constructs operationalized and the hypotheses framed and tested. Revisits this question, clarifying the definition and measure used for pure strategies, adopting a two-dimensional purity construct. Locates business units in strategy space using the dimensions of operating excellence and product leadership. Tests the hypothesis that there is a positive relationship between strategic purity and performance, using data from workplace and employee survey data at business unit level for Canadian firms. Utilizes two panels of data collected in 1999 and 2000. Findings –Observes a positive relationship between strategic purity and business performance. Draws attention to different patterns of results emerging in business services, construction and manufacturing sectors. Suggests that a strategic position of pure operating efficiency represents a more reliable a passage to superior operating margins. Points out that both product and service leadership are observable by customers and competitors and therefore open to imitation. Originality/value – Concludes that notwithstanding industry-specific success factors, pursuit of a pure strategy is always equal or preferable to hybrid strategic positioning.ISSN: 0143-2095Reference:36AK057
Keywords: Competitive advantage, Corporate strategy, Organizational performance
