Competitive Strategy, Technological Innovation Behavior And Firm Performance

Porter’s basic competition strategy has become a hot issue in the academic field since it was put forward, especially the relationship between the basic competitive strategy and firm performance has attracted the attention of many scholars. However, there is the divergence on the question that which kind competitive strategy can bring a better performance. In addition, the existing researches mostly focus on the direct effect, and the research on the mechanism and path of competitive strategy on performance is relatively few. All kinds of behavior choice of enterprise is to realize its established strategic services, including technological innovation. Various competitive strategies need to rely on technological innovation to gain a higher yield and competitive advantage. Resource-based enterprises, in particular, which rely on resources and cheap labor excessively, have seriously hampered the ability to enhance their technological innovation and have resulted in product homogeneity, high consumption and low output and so on. So it is urgent to change the mode of economic development of the resource-based enterprises. This paper will add technological behavior into the framework of competitive strategy and firm performance to solve the growth problem of resource-based enterprises.On the basis of the relevant literature and theoretical analysis, this paper constructs a panel data model of competitive strategy and enterprise performance and selects panel data in 2011-2014 of resource-based enterprises for empirical research. The results show that both low cost strategy and differentiation strategy are beneficial to the firm performance,but the impact mechanism is different. Low cost strategy has effects on the firm performance both directly and indirectly by a mediator of technological innovation, but differentiation strategy only has an indirectly effect on the firm performance by a mediator of technological innovation. Finally, this paper makes a further analysis and discussion on the results of the study, and puts forward some policy recommendations to provide reference for enterprises’decision-making.