Open AccessBusiness Firm Performance Types And The Strategic Implications
Author(s) -
Peng Chan,
Edward J. Flynn,
Ravi Chinta
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v7i1.6257
Subject(s) - industrial organization , strategic management , business , asset (computer security) , linear discriminant analysis , marketing , economics , finance , statistics , mathematics , computer security , computer science
This study reports the findings of five different performance types that exist among business firms. These types were: Growing firms, turnabout firms, stagnant firms, turnaround firms, and declining firms. Using multiple discriminant analysis, the strategic differences among the five types were revealed. These strategic differences were captured in three dimensions, namely, asset-acquisition, finance, and differentiation. The key results indicate that growing firms tended to emphasize differentiation; turnabout firms ranked low on almost all dimensions; stagnant firms were high on both asset-acquisition and differentiation; turnaround firms tended to focus on financial strategies, and declining firms placed little emphasis on differentiation. The promising use of multiple discriminant analysis as a tool for taxonomic research in strategic management was highlighted.