The relationship of generic strategy typing and organizational longevity

Abstract

Purpose To analyze the relationship between an organization's generic strategy and its longevity. Design/methodology/approach Companies in the USA, comic book industry were classified in the Miles and Snow generic strategic types. An ANOVA test was then used to determine the relationship between these strategic types and organizational longevity (time from market entry to exit). Findings Results indicate a significant link between strategic type and longevity. Organizational strategy accounts for 35 percent of the variance in longevity. Companies with a defender strategy had the greatest longevity, and prospectors had the shortest. Research limitations/implications The study is conducted in only one industry which may limit its generalizability. Practical implications This study provides insights into the role of organizational strategy on longevity, and can be used for strategic decision‐making as well as investment decisions. Originality/value This study is the first to link the Miles and Snow typology to organizational longevity. It also provides insights into the role of strategy in creative and knowledge‐based organizations.