Environment, Generic Strategies, and Performance in a Rapidly Developing Country: A Taxonomic Approach

Abstract

Multivariate analyses of 54 firms in the high-growth electronics industry in Korea showed that top management perceived multiple environments within the industry. The characteristics of the four strategic groups identified in this study were generally consistent with those of the generic strategies identified by Porter and by Miller, and the four environmental settings that emerged were classified primarily on the basis of two dimensions, technical dynamism and bargaining power. High-performing cost leaders and high-performing differentiators were found in different environments. Also, firms without a clearcut generic strategy performed less well than those using generic strategies.