Publication Type

Journal Article

Version

acceptedVersion

Publication Date

11-2019

Abstract

Purpose: Strategic groups research has been hampered by the poor alignment between theory and methods. This has been due in large part to the lack of significance tests for cluster analysis. Now that significance tests are available, the theoretical and methodological implications are discussed. The paper aims to discuss these issues. Design/methodology/approach: The theory behind strategic groups is reframed to capitalize on the available significance tests. Subsequently, the significance tests are also modified to fit the proposed theory. Due to this integrative approach, this is both a theoretical and a methodological paper. Findings: In lieu of significance tests, finding differences in performance emerged as the litmus test for the existence of discrete strategic groups. The concept of strategic groups gradually evolved to fit this requirement. Now that significance tests are available, these legacy effects of the structure-performance link can be removed. This reveals that three conflicting concepts have been sharing the label of strategic groups: strategic categories, interdependent strategic groups and strategic performance groups. The theory also reveals that the significance tests developed in ecological research need modifications for use in strategic groups research. Research limitations/implications: A theory is proposed for interdependent strategic groups and a significance test of external isolation is proposed as part of this integrative solution. Originality/value: This integrative solution appears to resolve the historical mismatch between theory and methods that has plagued this field since its inception. This creates a variety of intriguing areas for future research.

Keywords

Interdependence, Strategic groups, Cluster analysis, Categories and competition, Significance tests, Structure-performance link

Discipline

Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Journal of Strategy and Management

Volume

12

Issue

4

First Page

505

Last Page

521

ISSN

1755-425X

Identifier

10.1108/JSMA-07-2019-0142

Publisher

Emerald

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1108/JSMA-07-2019-0142

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