The purpose of this study is to explore how blue ocean strategy and competitive strategy influence a firm's business performance differently according to its stage in the industry life cycle (ILC). We developed a theoretical research model and the measure items to capture the different attributes of the blue ocean and competitive paradigms. We collected primary data from 309 business owners and senior managers working in the U.S. through a survey research. We tested the data by performing the exploratory factor analysis (EFA), the confirmatory factor analysis (CFA) and the structural equation modeling analysis (SEM) using SPSS and AMOS. The results from the statistical analysis demonstrate that the effects of blue ocean strategy on a firm's business performance become increasingly weak as ILC stages pass, while the effects of competitive strategy gradually strengthen. However, our results show that, in general, blue ocean strategy has a more positive effect on a firm's performance than competitive strategy. In addition, the study results suggest that blue ocean strategy fully mediates the relationship between a firm's market orientation and its business performance, while competitive strategy only partially mediates the relationship. We discuss some theoretical implications and contributions of our research findings.
Cho, Y.S. and Jung, J.Y., 2013. Blue Ocean Strategy vs. Competitive Strategy: The Effect of Business Strategic Choices on Firm Performance, According to the Industry Life Cycle. International Research Journal of Business and Economics, 1(1), pp.36-45.
International Research Journal of Business and Economics