The effects of competitive strategies on firm performance: a study in Turkish textile and apparel industry considering the mediating role of value chain activities

Abstract

This research is to empirically examine the effect of competitive strategies on firm performance by considering value chain activities in Turkish textile and apparel industry for achieving sustained competitive advantage. On the basis of theoretical and empirical literature, Porter’s competitive strategies and value chain activities, and firm performance are used to construct the research model to examine the causal relationships between variables affecting such alignment, using a multiple regression analysis. Hypotheses were formulated concerning the relationships between these variables in the context of Turkish textile and apparel industry, and a questionnaire was developed to measure the variables. As data collection method, a face to face questionnaire was conducted to 475 managers in different Turkish textile and apparel firms in Istanbul Metropolitan Area. The data gathered were used to test the hypotheses through multivariate data analysis techniques using the SPSS and LISREL software programs. The findings of research reveal that there is no relationship between competitive strategies (with the exception of differentiation) and firm performance in Turkish textile and apparel industry. The results of research suggest that in order to improve firm performance and to get sustainable competitive advantage in global markets, competitive strategies ought to be determined and cost and differentiation strategies implemented together by decision makers of Turkish textile and apparel industry.