TY - JOUR
T1 - Cointegration relationships of strategy variables among firms within strategic groups
AU - Hsueh, Shun Jen
AU - Kang, Hsin Hong
PY - 2007/3
Y1 - 2007/3
N2 - 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.
AB - 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.
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U2 - 10.1007/s10490-006-9009-0
DO - 10.1007/s10490-006-9009-0
M3 - Article
AN - SCOPUS:33847353776
SN - 0217-4561
VL - 24
SP - 61
EP - 73
JO - Asia Pacific Journal of Management
JF - Asia Pacific Journal of Management
IS - 1
ER -