The purpose of this study is to argue that the group definition task should by be driven by mobility barriers between strategic groups, to categorize groups of firms having simmilar mobility barriers, and to examine how variables such as environmental perception, and strategy are associated differently with different groups of firms.
This study has three major steps in conceptualization.
It takes a deductive approach by reviewing the existing literature about strategic group to develop a conceptual model. Then, an indepth industry knowledge must be required to generate valid strategic group-defining variables, because group-defining variables are idyosyncratic to an industry. Personel interviews with top executives in the health food industry clearly revealed the presence of mobility barriers along two demensions : backward vertical integration, forward vertical integration, Finally, it generate three hypotheses by joining both deductive and inductive approaches.
The data were collected from 33 firms via questionaire. The major findings are as follows:
1. Four types of strategic groups exhibit different environmental perception. strategic groups which has high mobility barriers perceive more opportunity to grow than strategic groups which has low mobility barriers.
2. Four types of strategic groups show different patters of stratrgies. Strategic groups which has high mobility barriers make more investment than strategic groups which has low mobility barriers in almost strategy demensions.
3. Four types of strategic groups show different performance level. strategic groups which has high mobility barriers are more profitable than strategic groups which has low mobility barriers.
