Generic Strategy Research: Application of LISREL and Smallest Space Analysis
The concept of generic strategies remains the principal framework in discussions of business-level strategy formulation in research and teaching. Given that generic strategy typologies (e.g., Porter, 1980; Mintzberg, 1988) represent latent constructs, researchers have predominantly employed Factor Analysis to identify underlying dimensions among observed variables (i.e., generic competitive methods). However for the generic strategy research stream to progress, statistical techniques that examine the relative “goodness-of-fit” of different typologies to empirical field data are sorely needed. The purpose of this paper is to discuss the appropriateness and application of LISREL and Smallest Space Analysis (SSA) for generic strategy research. Specifically, we argue that the use of these techniques allow researchers to clarify and crystallize some of the assertions underlying the concept of generic strategies and to test them more rigorously than in the past.
KeywordsGeneric Strategy Competitive Method Strategy Construct Cost Leadership Interpoint Distance
Unable to display preview. Download preview PDF.
- Ansoff, Igor (1965), Corporate Strategy. New York: McGraw Hill.Google Scholar
- Bollen, K. A. (1989), Structural Equations with Latent Variables. New York: Wiley.Google Scholar
- Burke, M. J., Brief, A. P., George, J. M., Roberson, L., and Webster, J. (1989), `Measuring affect at work: Confirmatory analyses of competing mood structures with conceptual linkages to cortical regulatory systems,’ Journal of personality and social psychology, 57, pp 1091–1102.CrossRefGoogle Scholar
- Jöreskog, K. G. and Sorbom, D. (1986), LISREL VI: User’s Guide, Mooresville, IN: ScientificGoogle Scholar
- Kotha, S. and Vadlamani, B. L. (1995), Assessing generic strategies: An empirical investigation of two competing typologies in discrete manufacturing industries. Strategic Management Journal, 16, pp 7583.Google Scholar
- Lingoes, J. C. (1973), The Guttman-Lingoes Nonmetric Program Series. Mathesis Press, Ann Arbor, MI.Google Scholar
- Long, J. C. (1983), Confirmatory Factor Analysis. Newbury Park, California: Sage Publications.Google Scholar
- Miles, R. E. and Snow, C. C. (1978), Organization Strategy, Structure and Process. New York: McGraw- Hill Book Company.Google Scholar
- Miller, D. and Friesen, P. H. (1986), Porter’s (1980), generic strategies and performance: An empirical examination with American Data. Organization Studies, 7,3 pp 255–261.Google Scholar
- Mintzberg, H. (1988), `Generic Strategies: Toward a comprehensive framework,’ Advances in Strategic Management, 5, pp 1–67.Google Scholar
- Porter, M. E. (1980), Competitive Strategy. New York: Free Press.Google Scholar
- Rindskopf, D. and Rose, T. (1988), ‘Some theory and application of confirmatory second-order factor analysis,’ Multivariate Behavioral Research.Google Scholar