Porter's (1980) Generic Strategies as Determinants of Strategic Group Membership and Organizational Performance

Abstract

A multimethod, multivariate analysis of “intended” strategies provides empirical support for the presence of strategic groups based upon Porter's (1980) generic strategies. Variations in intraindustry profitability and growth are found to be related to strategic group membership. Firms identified with at least one generic strategy outperformed firms identified as “stuck in the middle.”