Linking Porter’s generic strategies to firm performance

Xhavit Islami (), Naim Mustafa () and Marija Topuzovska Latkovikj ()
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Xhavit Islami: Saints Cyril and Methodius University in Skopje
Naim Mustafa: Department of Management, Faculty of Economics, University Kadri Zeka in Gjilan
Marija Topuzovska Latkovikj: Saints Cyril and Methodius University in Skopje

Future Business Journal, 2020, vol. 6, issue 1, 1-15

Abstract: Abstract In this study, the significance of using Porter’s generic strategies in firms that operate in competitive environments is investigated. The aim is to indicate the effects of Porter’s generic strategies (low-cost strategy, differentiation strategy, and focus strategy) on firm performance. The questionnaires of the study have been prepared, the responses have been obtained, and the econometric model is constructed to measure these relationships. Findings stemmed by data that were taken from 113 firms that operate in the Republic of Kosovo. t test, Pearson’s correlation analysis, and multivariate regression analysis were used to provide testing of hypotheses. Econometric results suggest that pursuing differentiation strategy provides higher firm performance compared to two other Porter’s generic strategies (low-cost strategy or focus strategy) that have a positive impact as well.

Keywords: Porter’s generic strategies; Low-cost strategy; Differentiation strategy; Focus strategy; Firm performance (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (13)

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DOI: 10.1186/s43093-020-0009-1

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