This cross-sectional study of Portuguese service organizations seeks to determine the level of alignment of competitive methods with strategy typologies covered in the business literature. Surveyed firms were asked to indicate their level of utilization of several competitive methods. The results of factor analysis of the survey data indicate that 30 of the 33 competitive methods covered in this study represent seven underlying strategy dimensions. Further analysis revealed that there is some congruence between the derived strategy dimensions and established strategy typologies in the literature. Cluster analysis revealed that each of the responding firms could be classified into one of four hybrid or mixed strategy orientations. However, differences in strategy orientation were not statistically significant in explaining differences in the financial performance of these organizations. These findings are discussed in the light of their implications for strategy development, strategy choices and performance evaluation in the Portuguese service sector.

The resource-based view (RBV) of competitive strategy emphasises the importance of unique firm resources and associated capabilities to the formulation of competitive strategy. This cross-sectional study seeks to determine whether or not the pattern of usage of competitive methods related to marketing, information technology and flexibility in the Portuguese service sector aligns with the resource-based view. Fifteen service-related competitive methods are identified. Surveyed firms were asked to indicate the degree of relevance of these competitive methods to their competitive strategy. Exploratory factor analysis and structural equation modelling indicates that these methods represent four underlying strategy dimensions that reflect some of the dynamic capabilities suggested by the resource-based view. In addition, cluster analysis revealed that each of the responding firms could be classified into one of three capability orientations. Some implications of these findings for strategy development in the Portuguese service sector are discussed. Limitations of the study and areas for future research are also presented.

This research mainly examines the relationship among competitive methods, performance measures, and strategic orientations utilised by 68 Portuguese manufacturing organisations from different industries. The findings reveal that the surveyed organisations appear to be following a hybrid-mixed strategy. The group with the best results adopted the most balanced strategic approach, as it emphasised most of the different strategic dimensions. The examination of the strategic orientations, performance dimensions, and most utilised performance measures reveals inconsistencies among the surveyed organisations, which clearly indicates that the strategic choices and performance measures and measurements are misaligned. This study has direct practical implications to executives of manufacturing organisations, as they attempt to integrate their organisational systems in pursuit of effective strategic competitive performance. Based on the results of this study, a conceptual framework is proposed to facilitate the alignment among the competitive methods, performance measurement, and selected strategy.

Purpose: As service organizations move toward the open system strategic customer orientation, they need to ensure consistency among competitive methods, performance measures and strategies utilized. This paper aims to examine the relationships among these important facets of today’s service organizations. The study at hand examines the relationship among competitive methods, implicit strategy and performance measures used by Portuguese service organizations. Design/methodology/approach: This research uses a survey-based methodology. Factor analysis, cluster analysis and regression analysis procedures are used to analyze the collected data from Portuguese service organizations. Findings: Based on the results of this study, it appears that some of the studied service organizations are steadily moving toward the open system mode of strategy, competitive methods and performance measurement. However, the majority of the service organizations examined appeared to be in a state of strategic confusion, as they appear to lack the consistency among competitive methods, performance measures and desired strategic orientations. Research limitations/implications: The sample used in this study is specific in nature, as it includes only Portuguese service organizations. Therefore, the results of this study should be interpreted with caution. Future research in other cultural service settings is recommended. Such research should emphasize the exploration of theoretical frameworks, which tend to practically integrate competitive methods, performance measures and strategic orientation. Practical implications: This study has direct practical implications for service managers, as they attempt to integrate their organizational systems. As such, the research in this study paves the way toward the practical integration and consistency among competitive methods, performance measures and strategic orientations needed to enhance the customer orientation. In this context, such integration and consistency are essential to enhance the strategic competitiveness of today’s service organizations operating in a dynamic marketplace. Originality/value: This research combines bodies of knowledge dealing with competitive methods, performance measures and their impact on strategic orientations. The conceptual framework offered in this research attempts to facilitate the understanding for consistent practice pertaining to the competitiveness of the open system service organization in a dynamic environment. Such consistency is essential to the competitiveness of the organization in a dynamic environment.