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In spite of convincing theoretical arguments in the literature, very little attention is paid to empir- ically identifying the dimensions of competitive priorities. The present study identifies these di- mensions and relates them to Porter's cost-differentiation strategy framework. Although the ma- jority of the manufacturing plants ranked quality as the most important competitive priority, it could not foster differentiation by itself. Subsequent analyses show that while plants pursuing dif- ferentiation strategy were proactive in two administrative activities (communication of manufac- turing strategy and establishment of formal strategic planning), plants pursuing low-cost strategy were not, suggesting that the managers of these plants pay close attention to these administrative activities.

Dimensions Of Competitive Priorities: Are They Clear, Communicated, And Consistent?