Dimensions Of Competitive Priorities: Are They Clear, Communicated, And Consistent?

Abstract

In spite of convincing theoretical arguments in the literature, very little attention is paid to empirically identifying the dimensions of competitive priorities. The present study identifies these dimensions and relates them to Porter’s cost-differentiation strategy framework. Although the majority of the manufacturing plants ranked quality as the most important competitive priority, it could not foster differentiation by itself. Subsequent analyses show that while plants pursuing differentiation strategy were proactive in two administrative activities (communication of manufacturing strategy and establishment of formal strategic planning), plants pursuing low-cost strategy were not, suggesting that the managers of these plants pay close attention to these administrative activities.