Competitive Institutional Strategies: A New Generic Typology

Abstract

This paper places firm competitive strategy in an institutional context to offer a competitive institutional strategy typology. The structure of a competitive institutional environment is explained in terms of its constituents: institutional support, and institutional influence on governance orientation. Firm and competitor position are given in terms of this framework. Proposals dealing with firm strategic aim are identified. Firm strategy is described in terms of movement towards or maintenance of positions within the framework through four strategy types: Dominant market competition, niche market competition, institutional competition-support and institutional competition-governance. Propositions relating firm position, competitor position, strategy and performance are advanced in the context of short and longer time frames. Finally, the paper includes a discussion of firm characteristics, which affect the choice of strategy by firms.

Keywords: Competitive strategy, institutions, corporate governance