Pure, hybrid or "stuck-in-the-middle" strategies? A revision and analysis of their effects on firm performance

Abstract

The purpose of this study is to examine the viability of hybrid competitive strategies, which combine differentiation and cost elements, and their impact on organisational performance in comparison to pure strategies and “stuck-in-the-middle” combinations. The analysis carried out on a multisectorial sample of 164 Spanish firms has revealed that a large number of them use different types of hybrid strategies and also that such strategies tend to be associated with higher levels of firm performance, particularly those strategies which place emphasis on a greater number of strategic dimensions, and specifically on innovation differentiation. This is a relevant finding because previous studies had so far focused above all on US data and because it shows that Spain has evolved from being a developing country with low costs to a developed nation where innovating is important in order to be competitive.