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RESULTS

Hypothesis 1 suggests that firms following a LCS experience higher performance. Results shown in Table 1, Model 1, provide marginal support for this hypothesis. The regression coefficient for the LCS was statistically significant at p<.10. Hypothesis 2 suggests that a HQS also has a positive effect on firm performance. Again, results shown in Model 1 provide marginal support for this hypothesis. The regression coefficient for a HQS is statistically significant at p<.10. Hypothesis 3 does not receive support, however. There is no statistically significant relationship between the use of a TBS and performance. The results in Model 2 show that all three types of competitive actions used to demonstrate the firm’s timing for implementing new products to the marketplace are positively related to ROS (the regression coefficients are all statistically significant at p<.05). The addition of the implementation approaches to the model produces a statistically significant increase in R2 and they explain more variance in performance than the competitive strategies.

Because of the small number of respondents employing low–cost strategies and the small number using the late follower’s approach to competitive actions, there were no firms utilizing this combination. Thus, we could not enter all three interactions of the LCS with the three implementation approaches as shown by intended competitive actions in the same model because it would create a singular matrix. As a result, we entered them individually; as noted in the table, no interaction was statistically significant (see models 3, 4, and 5). These results support Hypothesis 4. Care must be taken interpreting these findings, however, because of the small number of firms in each cell.

As shown in Model 6, all three of the interactions between the HQS and the implementation approaches are statistically significant, but they all are negatively related to firm performance. Therefore, Hypothesis 5 is not supported. The results related to Hypothesis 6 are presented in Model 7. As shown, none of the interaction effects are statistically significant; therefore, they do not support the hypothesis. In summary, the overall results provide support for three of the hypotheses (Hypothesis 1, 2, and 4) and do not provide support for the other three hypotheses (Hypothesis 3, 5, and 6). These results, and their implications, are discussed next.

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