Strategic similarity and firm performance: the moderating role of national institutions

Abstract

Purpose

This study aims to test the moderating effect of market-supporting institution on the strategic similarity–firm performance relationship.

Design/methodology/approach

The present is study based on a large panel of firms from developed and emerging economies covering the period 2000–2014.

Findings

Highly-developed market-supporting institutions improve the performance of firms that stick to industry's average strategies while weakly-developed market supporting institutions improve the performance of firms that deviate from industry norms.

Originality/value

This is the first paper that shows that the effect of strategic similarity on firm performance depends on the degree of development of market-supporting institutions.

Citation

Martynov, A. (2023), "Strategic similarity and firm performance: the moderating role of national institutions", Journal of Strategy and Management, Vol. 16 No. 2, pp. 301-322. https://doi.org/10.1108/JSMA-05-2022-0081