Testing High Performance Configurations: A Five-Step Model Using Fuzzy Set QCA

Abstract

As the literature on a subject matures, increasingly refined studies are conducted to understand the complex nature of the concept and its context. However, performance outcomes of complex systems of interdependencies may be difficult to capture using commonly employed methods, such as regression models. This study aims to break new ground by employing a configurational approach to analyze the constellations of different strategic orientations, strategy types, and market conditions that yield superior performance using fuzzy set Qualitative Comparative Analysis (QCA). We offer a five-step model to develop and test alternative configurations. We hypothesize performance effects of four configurations and find support for three. The study has implications for strategy analysis, market orientation research, and configurational theory and in general.