Cointegration relationships of strategy variables among firms within strategic groups

Shun Jen Hsueh, Hsin-Hong Kang

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

This study examines the long-term, dynamic equilibrium relationship for strategy variables of firms in strategic groups by conducting a cointegration analysis. Replicating the Nair and Filer (Strateg. Manage. J., 24: 145-159, 2003) methodology and extending it to four industries listed on the Taiwan Stock Exchange, we find that not all of non-stationary strategy variables have the cointegration relationships, and that only the strategy variables of strategic groups in our traditional industries (as compared to our high-tech industries) should have a long-term competitive equilibrium (cointegration relationship). In other words, we can proceed with an error correction model in some traditional industries to map out the relative positions of rival firm strategies and subsequently implement appropriate reactions.

Original languageEnglish
Pages (from-to)61-73
Number of pages13
JournalAsia Pacific Journal of Management
Volume24
Issue number1
DOIs
Publication statusPublished - 2007 Mar 1

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management

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