Exploring the effect of strategic positioning on firm performance in the e-business context

Authors:
Yong Jin Kim;Jaeki Song;Chulmo Koo
Affiliations:
School of Business Administration, Sogang University, Seoul 121-742, Republic of Korea;Rawls College of Business Administration, Texas Tech University, Lubbock, TX 79409, USA;College of Business Administration, Chosun University, Gwangju 501-759, Republic of Korea
Venue:
International Journal of Information Management: The Journal for Information Professionals
Year:
2008

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Abstract

This study investigates what strategic positions exist in the e-business context and how strategic positioning affects firm performance. The current study draws on the concept of fit between environmental factors and organizational factors. We collected survey data from both pure online and click-and-mortar companies and tested the model using 133 firm reports. Cluster analysis was performed to analyze survey data and to find groups of companies that pursue similar strategic positioning. The findings of the current study lend support to the hypothesis of distinctive grouping based on environmental factors and resources. The findings also support the hypothesis that strategic positioning influences firm performance. The major implication of this study is that innovative differentiation strategies together with technological resources strongly affect firm performance in the e-business context, a context where there is considerable turbulence in technological development.