The mediating effect of the choice of competitive strategy on the relationship of SMA information usage and firm performance
List of Authors
  • Pu Zhao , Raman Noordin

Keyword
  • SMA Information Usage, Competitive Strategy, PLS-SEM

Abstract
  • We investigated the matching relationship between the SMA information usage and the choice of competitive strategy based on the contingency theory, and tested the matching results through firm performance. In other words, we examined the mediating role of the choice of competitive strategy on the relationship between the SMA information usage and firm performance. The study collected data from 172 Chinese manufacturing firms by questionnaire and analyzed the data through PLS-SEM. Through the analysis results we found that when the product-related information usage and customer-related information usage matched with the choice of differentiation strategy, the firm was able to obtain better performance. In addition, the study found that the choice of cost leadership strategy mediated the relationship between the competitor-related information usage and firm performance, as well as the relationship between the use of product-related information and firm performance. This study provides suggestions for Chinese manufacturing managers to use SMA information for strategic decision making, at the same time, demonstrates the link between competitive strategy and SMA.

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