Competitive strategy, performance measurement, and firm performance | |
| Author | Luliya Teeratansirikool |
| Call Number | AIT Diss. no.SM-13-03 |
| Subject(s) | Business enterprises--Evaluation Corporations--Valuation |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation ; no. SM-13-03 |
| Abstract | This dissertation examines the relationship between competitive strategy and firm performance. Adding a theoretical contribution to the existing studies, it asserts that performance measurement and HRM practices have a mediating effect on such a relationship. That is, a firm will be able to implement itscompetitive strategies more effectively andperformbetter if itapplies aneffective performance measurement and HRM practices. In this study, the data collection was conducted in three stages. First, the researcher used a qualitative method, namely, the in-depth interview, to gain insight into the research issuesby using a semi-structuredquestionnaire. Four executives from Thai listed companies were interviewed. The data were analyzed and discussed in termsof the relationship between competitive strategy, performance measurement, human resource management, and firm performance. Second, a pilot study was administered with 24 Thai listed companies in order to develop and test the survey instrument so that modifications of the questionnaire and anyfine-tuning of the research methodology couldbe implemented for the full scale survey. The data obtained were analyzed by using the statistical software,SPSS Version11.5. The data analyses were conducted using factor analysis, correlation, regression and path analysis. The third step was the development of a full-scale questionnaire which was distributed among 561 Thai listed companies, which was analyzed using the same statistical methods as those applied to the second stage. A total of 101 executives from Thai listed companies, each representing their own company, participated in this study. This study finds that generally, all competitive strategies positively and significantly enhancedfirm performance when a performance measurementwas applied. Specifically, a firm‟s differentiation strategy not only has a direct and significant impact on firm performance but it also has indirect and significant impact on firm performance through financial measures. When firms pursue a cost leadership strategy,this does not directlyimpact onfirm performance.However, an indirect and significant impact through financial performance measures is observed.The study also finds that HRM practices play a mediating role in the relationship between Porter‟s competitive strategy model and firm performance. Specifically, this study finds that HRM practices play a full (as opposed to partial) mediating role in the relationship between cost leadership strategy and firm performance. There is no direct relationship between cost leadership and firm performance. However whenbusinesses align theirHRM practices with cost leadership strategy,firm performance is enhanced. Whenfirms implement a differentiation strategy, the study finds that HRM practices have a partial mediating role inthe relationship between differentiation strategy and firm performance. Differentiation strategy by itself has a positive relationship with firm performance, and HRM practices aligned with the differentiation strategy also enhance firm performance.This study adds a substantialtheoretical discussion and empirical analyzes as well asfindings on the mediating role of performance measurement on the relationship between competitive strategy and firm performance. The paper also offers managerial implicationsthat whena firm preferscost leadership or differentiation as its competitive strategy, a strong emphasis on performance measurement and HRM practiceswill ensure apositive impact on firm performance in thefierce competitive environment. Usinglongitudinal data to ascertain more clearly these causal relationshipsshould be consideredin the future research. |
| Year | 2013 |
| Corresponding Series Added Entry | Asian Institute of Technology. Dissertation ; no. SM-13-03 |
| Type | Dissertation |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Sununta Siengthai |
| Examination Committee(s) | Badir, Yuosre F. ;Chotchai Charoenngam |
| Scholarship Donor(s) | Prince of Songkla University ;Asian Institute of Technology Fellowship |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2013 |