This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Download to citation manager Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Google Scholar Articles by Park, K. M. Search for Related Content

Antecedents of Convergence and Divergence in Strategic Positioning: The Effects of Performance and Aspiration on the Direction of Strategic Change

School of Business, Yonsei University, 134 Seodaemoon-gu, Shinchon-dong, Seoul 120-749, Korea
kminpark{at}yonsei.ac.kr

This paper investigates drivers of convergence and divergence in strategic positioning in terms of resource-allocation decisions. The study, based on the behavioral theory of the firm, suggests two unexplored kinked-curve relationships between performance gaps and strategic convergence-divergence. First, the study suggests a negative relationship between a focal firm’s performance relative to aspiration levels and strategic convergence-divergence, where the slope is steeper when performance is above the aspiration level. Second, it suggests a positive relationship between a target firm’s performance relative to a focal firm’s performance and strategic convergence-divergence, where the slope is steeper when a target firm’s performance is below a focal firm’s performance. Empirical analysis of dyad-level data in the U.S. food processing industry reveals that the direction of a firm’s strategic change is shaped by its aspiration level, its performance level, and the performance gap between it and the firm it selects as a model. This study contributes to the current literature by offering preliminary indications of when and how a firm moves closer to or further away from other competing firms in its strategic position.

Key Words: convergence; divergence; strategic positioning; performance gap; aspiration levels

This article has been cited by other articles:

				T. E. Beck and D. A. Plowman Experiencing Rare and Unusual Events Richly: The Role of Middle Managers in Animating and Guiding Organizational Interpretation Organization Science, September 1, 2009; 20(5): 909 - 924. [Abstract] [PDF]

				A. C. Amason and A. C. Mooney The Icarus paradox revisited: how strong performance sows the seeds of dysfunction in future strategic decision-making Strategic Organization, November 1, 2008; 6(4): 407 - 434. [Abstract] [PDF]

				V. M. Desai Constrained Growth: How Experience, Legitimacy, and Age Influence Risk Taking in Organizations Organization Science, July 1, 2008; 19(4): 594 - 608. [Abstract] [PDF]

				W.-R. Chen Determinants of Firms' Backward- and Forward-Looking R&D Search Behavior Organization Science, July 1, 2008; 19(4): 609 - 622. [Abstract] [PDF]

				L. Argote and H. R. Greve A Behavioral Theory of the Firm--40 Years and Counting: Introduction and Impact Organization Science, May 1, 2007; 18(3): 337 - 349. [Abstract] [PDF]