Building a case against strategic equifinality: Hybrid ideal type service organizations in a developing country

Abstract

Purpose

The purpose of this paper is to build a case against strategic equifinality. This is accomplished by employing hybrid ideal types approach and testing the effect of these strategic types on firm performance among service firms in the context of a developing country.

Design/methodology/approach

Data were collected via a self-administered survey. The final sample of this study encompassed 169 ideal type hybrid companies operating in the tourism industry in Mugla, Turkey.

Findings

The research findings indicate that prospectors and hybrid prospector-analyzer (PA) orientations outperform defenders based on several financial and non-financial performance measures. However, all other strategic orientations show identical performance.

Research limitations/implications

The research findings imply that adopting a hybrid strategy is a viable option. In addition, SMEs in developing countries should exercise some caution when deciding to adopt a defender strategy.

Originality/value

This study uses hybrid ideal types for service firms in a dynamic business environment in a developing country.

Citation

Madanoglu, M., Okumus, F. and Avci, U. (2014), "Building a case against strategic equifinality: Hybrid ideal type service organizations in a developing country", Management Decision, Vol. 52 No. 6, pp. 1174-1193. https://doi.org/10.1108/MD-03-2013-0131