Convergence-Divergence Within Strategic Groups

  • Markus Schimmer


Since Hunt (1972) initially grouped strategically similar firms within the appliance industry into sets of direct competitors and dubbed these clusters “strategic groups”, numerous strategy scholars have adopted the strategic group concept. While early studies mostly applied strategic groups as a middle-ground between the industry and the firm for predicting profitability differences between firms, more recent studies turned toward investigating the internal structure of strategic groups (Cool & Schendel, 1987; McNamara et al., 2003), the groups’ roles in guiding managerial decision making and the competitive behavior of firms (Baum & Lant, 1995; Bresser, Dunbar, & Jithendranathan, 1994; Fiegenbaum & Thomas, 1995; Porac & Thomas, 1994), as well as the temporal dynamics of strategic groups (DeSarbo, Grewal, & Wang, 2009; Fiegenbaum & Thomas, 1993; Lee, Lee, & Rho, 2002; Mascarenhas, 1989; Oster, 1982).


Firm Performance Cluster Solution Insurance Industry Aspiration Level Focal Firm 


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Copyright information

© Gabler Verlag | Springer Fachmedien Wiesbaden 2012

Authors and Affiliations

  • Markus Schimmer
    • 1
  1. 1.St. GallenSwitzerland

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