The Linkage Between Strategic Groups and Firm Performance: An Analysis of Intergroup and Intragroup Differences

A central theme in the strategic groups literature is the theoretical relationship between groups and firm performance. The empirical evidence is conflicting, however. The aim of this research is to study this linkage through two analyses. Thus, the analysis that has been traditionally used – performance differences between groups – is complemented with an analysis of performance differences within each group. To set up strategic groups, we analyze firms operating in the construction industry, using specific variables associated with generic strategies.