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Pure versus hybrid competitive strategies in the forest sector: Performance implications

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https://ir.library.oregonstate.edu/concern/articles/5q47rq799

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  • The extant forest sector strategy research rests on Porter’s classic dictum that successful firms pursue a singular strategy. A growing research stream on organizational ambidexterity, however, challenges this traditional view and recommends the pursuit of hybrid strategies, a phenomenon that we note existing among forest sector firms. In this study, we set out to compare the financial performance of firms pursuing a singular or pure strategy and those pursuing hybrid strategies. We compare whether a differentiation, overall low cost, or hybrid strategy yields higher financial performance. We first deduce our study hypotheses and then test each using data from 441 US-based manufacturing firms drawn from multiple sub-sectors. We find no evidence that a hybrid strategy is a more effective choice towards enhanced firm performance than a singular strategy. We also find that firms pursuing a differentiation strategy are the highest performers while there is little difference in performance of firms pursuing other strategies.
  • Keywords: Cost leadership, Ambidexterity, Business strategy, Differentiation, Financial performance
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  • Hansen, E., Nybakk, E., & Panwar, R. (2015). Pure versus hybrid competitive strategies in the forest sector: Performance implications. Forest Policy and Economics, 54, 51-57. doi:10.1016/j.forpol.2015.02.001
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  • 54
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