Strategic Positioning and Strategic Stability: Does It Matter to Performance?

Abstract

This study investigates whether oil multinational oil companies (MNCs) have adopted distinct strategic positioning and whether strategic positioning and firm performance are related. Cluster analysis of 50 firms identified 10 strategic types. Although no statistically significant differences were found in expected future performance on an annual basis, there were statistically significant differences in past performance between strategic types in five out of the eight years (2000 – 2007) of the study. Also, averaged over the entire period, some strategic types presented higher expected future performance and some achieved higher past performance. Moreover, stability in strategic positioning – that is, keeping the same strategic positioning for a longer period of time – was also associated with better performance.

DOI:10.5585/riae.v12i4.2000