An Empirical Study of Strategic Positioning and Production Efficiency
Joint Authors
Chang, Hsihui
Fernando, Guy D.
Tripathy, Arindam
Source
Advances in Operations Research
Issue
Vol. 2015, Issue 2015 (31 Dec. 2015), pp.1-11, 11 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2015-06-22
Country of Publication
Egypt
No. of Pages
11
Main Subjects
Information Technology and Computer Science
Abstract EN
We examine the relationship between strategic positioning of firms and their production efficiency.
Firms with competitive advantages based on either cost leadership or differentiation are able to outperform their competitors.
Firms pursuing a cost leadership strategy seek to be the lowest cost producer, primarily by minimizing inputs for a given level of output, thus concentrating on increasing the efficiency of their production processes.
On the other hand, firms that pursue a differentiation strategy rely on innovation, brand development, marketing, and so forth to achieve competitive advantages; therefore such firms do not place high emphasis on production efficiency.
Thus the importance of production efficiency for the success of a firm depends on the strategic positioning of the firm.
We apply DEA to an archival data for a large sample of publicly listed firms to investigate the importance of production efficiency for firms based on their strategic positioning.
We provide empirical evidence that firms pursuing a cost leadership strategy attribute higher importance to production efficiency, while firms pursuing differentiation strategy attribute less importance to production efficiency.
American Psychological Association (APA)
Chang, Hsihui& Fernando, Guy D.& Tripathy, Arindam. 2015. An Empirical Study of Strategic Positioning and Production Efficiency. Advances in Operations Research،Vol. 2015, no. 2015, pp.1-11.
https://search.emarefa.net/detail/BIM-1053794
Modern Language Association (MLA)
Chang, Hsihui…[et al.]. An Empirical Study of Strategic Positioning and Production Efficiency. Advances in Operations Research No. 2015 (2015), pp.1-11.
https://search.emarefa.net/detail/BIM-1053794
American Medical Association (AMA)
Chang, Hsihui& Fernando, Guy D.& Tripathy, Arindam. An Empirical Study of Strategic Positioning and Production Efficiency. Advances in Operations Research. 2015. Vol. 2015, no. 2015, pp.1-11.
https://search.emarefa.net/detail/BIM-1053794
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1053794