Strategic planning as competitive advantage
Article Abstract:
The planning-performance relationship is reassessed using a resource orientation in order to establish strategic planning's inability to satisfy requirements for sustainable competitive advantage. This is said to hold true despite the strategic plan's economic significance since the plan is highly susceptible to imitation and substitution. The strategic planning-financial performance link is shown to be positive for industries where factor market imperfections exist in an industry's strategic planning. Such a relationship, however, is not evident in industries where a planning equilibrium exists. Three effects of the planning-performance relationship are observed. These are the negative cross-industry effect, the zero intra-industry effect in a planning equilibrium industry, and the positive intra-industry effect in the planning disequilibrium industry.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1992
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How much does industry matter? An alternative empirical test
Article Abstract:
Previous studies that used the same FTC Line of Business data have demonstrated that industry membership accounts for between 17% to 20% of financial performance variance among firms. A study is conducted in an attempt to reproduce the findings of these prior research works. Unlike the previous studies, however, this one employs an alternative sample and a methodology based on executives' perceptions to address limitations of earlier studies. Results are similar to those observed in the earlier studies. Industry factors explain about 20% of overall performance variance. In addition, analysis generates empirically extracted industry factors and examines their relative power in determining industry performance variance.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1996
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Toward a general theory of competitive dominance: Comments and extensions on Powell (2003)
Article Abstract:
Powell (2003) studied 20-year performance in 21 industries using an ordinal performance measure ('wins'), and the Gini coefficient as a measure of competitive dominance. The findings suggest that firm performance is statistically indistinguishable from performance in non-business domains such as politics, games, sports, and pageants.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 2005
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