Are pure or hybrid strategies right for new ventures in transition economies?. (December 2015)

• Record Type: Journal Article
• Authors: Manev, Ivan M; Manolova, Tatiana S; Harkins, Jason A; Gyoshev, Bojidar S
• Is Part Of: International small business journal. Volume 33:Number 8(2015)
• Page Start: 951
• Page End: 973
• Publication Date: 2015-12
• Subjects: hybrid strategy -- strategic intensity -- strategic type -- transition economies; Small business -- Periodicals; 338.64205
• DOI: 10.1177/0266242614550322
• Languages: English
• ISSNs: 0266-2426

Abstract

This article examines the role of strategic intensity or commitment to a chosen course of action, and the impact of pure versus hybrid competitive strategies on competitive performance in transition economies, using survey data ( N = 333) from Bulgaria. We find that strategic intensity is positively related to performance; firms that deviate from pure cost leadership or differentiation and achieve a balance on both dimensions report superior performance. In a post hoc analysis of our data, we find preliminary evidence that strategic intensity may act as a mediator of the relationship between strategic type and performance.