Hybrid strategic groups

Wayne Desarbo, Rajdeep Grewal

Research output: Contribution to journalArticle

46 Citations (Scopus)

Abstract

The notion of strategic groups has recently emerged as a critical perspective for uncovering firms' strategic postures/recipes and competitive market structures. Firms within strategic groups generally adopt similar strategic recipes and compete more intensely than firms across strategic groups. Building on recent research, the authors develop the concept of hybrid strategic groups, which blend the strategic recipes of more than one group, in contrast to existing conceptualizations of strategic groups, where either firms tightly follow the recipes of a strategic group (i.e., core firms) or firms loosely follow the recipes of a strategic group (i.e., secondary firms). Thus, competition among firms depends not only on the strategic group but also on the overlap ofthat strategic group with other strategic groups. The authors devise a combinatorial optimizationbased classification procedure utilizing a bilinear model that accommodates multiple variable batteries that can estimate hybrid strategic groups. The proposed methodology is illustrated by using archival data on public banks. For this illustration, the hybrid strategic group solution outperforms ordinary cluster analyses and offers critical insights into the nature of competition among firms.

Original languageEnglish (US)
Pages (from-to)293-317
Number of pages25
JournalStrategic Management Journal
Volume29
Issue number3
DOIs
StatePublished - Mar 1 2008

Fingerprint

Strategic groups
Competitive market
Market structure
Methodology
Conceptualization
Critical perspective
Blends

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management

Cite this

Desarbo, Wayne ; Grewal, Rajdeep. / Hybrid strategic groups. In: Strategic Management Journal. 2008 ; Vol. 29, No. 3. pp. 293-317.
@article{8b5ee0ca21e341fda28293b3385d5b83,
title = "Hybrid strategic groups",
abstract = "The notion of strategic groups has recently emerged as a critical perspective for uncovering firms' strategic postures/recipes and competitive market structures. Firms within strategic groups generally adopt similar strategic recipes and compete more intensely than firms across strategic groups. Building on recent research, the authors develop the concept of hybrid strategic groups, which blend the strategic recipes of more than one group, in contrast to existing conceptualizations of strategic groups, where either firms tightly follow the recipes of a strategic group (i.e., core firms) or firms loosely follow the recipes of a strategic group (i.e., secondary firms). Thus, competition among firms depends not only on the strategic group but also on the overlap ofthat strategic group with other strategic groups. The authors devise a combinatorial optimizationbased classification procedure utilizing a bilinear model that accommodates multiple variable batteries that can estimate hybrid strategic groups. The proposed methodology is illustrated by using archival data on public banks. For this illustration, the hybrid strategic group solution outperforms ordinary cluster analyses and offers critical insights into the nature of competition among firms.",
author = "Wayne Desarbo and Rajdeep Grewal",
year = "2008",
month = "3",
day = "1",
doi = "10.1002/smj.658",
language = "English (US)",
volume = "29",
pages = "293--317",
journal = "Strategic Management Journal",
issn = "0143-2095",
publisher = "John Wiley and Sons Ltd",
number = "3",

}

Desarbo, W & Grewal, R 2008, 'Hybrid strategic groups', Strategic Management Journal, vol. 29, no. 3, pp. 293-317. https://doi.org/10.1002/smj.658

Hybrid strategic groups. / Desarbo, Wayne; Grewal, Rajdeep.

In: Strategic Management Journal, Vol. 29, No. 3, 01.03.2008, p. 293-317.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Hybrid strategic groups

AU - Desarbo, Wayne

AU - Grewal, Rajdeep

PY - 2008/3/1

Y1 - 2008/3/1

N2 - The notion of strategic groups has recently emerged as a critical perspective for uncovering firms' strategic postures/recipes and competitive market structures. Firms within strategic groups generally adopt similar strategic recipes and compete more intensely than firms across strategic groups. Building on recent research, the authors develop the concept of hybrid strategic groups, which blend the strategic recipes of more than one group, in contrast to existing conceptualizations of strategic groups, where either firms tightly follow the recipes of a strategic group (i.e., core firms) or firms loosely follow the recipes of a strategic group (i.e., secondary firms). Thus, competition among firms depends not only on the strategic group but also on the overlap ofthat strategic group with other strategic groups. The authors devise a combinatorial optimizationbased classification procedure utilizing a bilinear model that accommodates multiple variable batteries that can estimate hybrid strategic groups. The proposed methodology is illustrated by using archival data on public banks. For this illustration, the hybrid strategic group solution outperforms ordinary cluster analyses and offers critical insights into the nature of competition among firms.

AB - The notion of strategic groups has recently emerged as a critical perspective for uncovering firms' strategic postures/recipes and competitive market structures. Firms within strategic groups generally adopt similar strategic recipes and compete more intensely than firms across strategic groups. Building on recent research, the authors develop the concept of hybrid strategic groups, which blend the strategic recipes of more than one group, in contrast to existing conceptualizations of strategic groups, where either firms tightly follow the recipes of a strategic group (i.e., core firms) or firms loosely follow the recipes of a strategic group (i.e., secondary firms). Thus, competition among firms depends not only on the strategic group but also on the overlap ofthat strategic group with other strategic groups. The authors devise a combinatorial optimizationbased classification procedure utilizing a bilinear model that accommodates multiple variable batteries that can estimate hybrid strategic groups. The proposed methodology is illustrated by using archival data on public banks. For this illustration, the hybrid strategic group solution outperforms ordinary cluster analyses and offers critical insights into the nature of competition among firms.

UR - http://www.scopus.com/inward/record.url?scp=40549111683&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=40549111683&partnerID=8YFLogxK

U2 - 10.1002/smj.658

DO - 10.1002/smj.658

M3 - Article

VL - 29

SP - 293

EP - 317

JO - Strategic Management Journal

JF - Strategic Management Journal

SN - 0143-2095

IS - 3

ER -