Moderating Role of Network Competency Between Composition Based Strategy Components and Firm Performance: Evidence from Retail Stores in Pakistan

Abstract

This paper investigates the relationship between the components of the composition based strategy and firm performance. The study further examines the moderating relationship of network competency on different components of the composition-based strategy (CBV) and financial performance. The study collects the data from 134 owners/managers of retail stores in Lahore, Pakistan. The data were analyzed with confirmatory factor analysis and hierarchical linear regression. The findings reveal that compositional competition and compositional capability positively relate to firm performance. The study only finds the significant moderating role of network competency between compositional capability and firm performance. This study advances the extant research in the strategic management literature by amalgamating resource utilization and a relationship-driven approach. This study further supports the notion that the composition-based view is an alternative strategic perspective for small firms. Future research work may advance the findings of this study by considering other measures of firm performance and replicating the study in different contexts.

Keywords

• Composition-Based View
• Composition-Based Strategy
• Compositional Offering
• Compositional Competition
• Compositional Capabilities
• Firm’s Performance