Title: Strategic grouping and performance of Portuguese manufacturing firms: a structural equation modelling approach

Authors: Carlos F. Gomes, Mario G. Augusto, Mahmoud M. Yasin

Addresses: School of Economics, ISR – Institute of System and Robotics, University of Coimbra, Av. Dias da Silva 165, Coimbra 3004-512, Portugal. ' School of Economics, ISR – Institute of System and Robotics, University of Coimbra, Av. Dias da Silva 165, Coimbra 3004-512, Portugal. ' Department of Management and Marketing, East Tennessee State University, P.O. Box 70625, Johnson City, TN 37614, USA

Abstract: The objective of this study is to investigate the strategic factors that influence the overall performance of manufacturing organisations in different industries. Strategic groups were identified using cluster analysis and their overall performance was evaluated. Structural equation modelling was used to verify the existence of significant linkages between competitive factors and firms| overall performance within the identified strategic groups. The results of this study pointed out to the existence of a relationship between strategic group membership and firm|s overall performance. Overall, the results tend to emphasise the importance of viewing manufacturing performance from a system-wide perspective.

Keywords: manufacturing performance; closed system orientation; open system orientation; system-wide performance; structural equation modelling; Portugal; manufacturing firms; strategic grouping; industrial clusters; cluster analysis; firm performance.

DOI: 10.1504/IJBSR.2010.033421

International Journal of Business and Systems Research, 2010 Vol.4 No.4, pp.417 - 431

Published online: 02 Jun 2010 *

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