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Journal of Management
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The Applicability of Porter’s Generic Strategies in the Digital Age: Assumptions, Conjectures, and Suggestions

Eonsoo Kim

Department of Management, Korea University, 5-1 Anam-dong Sungbuk-ku, Seoul, 136-701, South Korea

Dae-Il Nam

LG Economic Research Institute, LG Twin Towers, East Tower 33rd Floor, 20, Yoido-dong Youngdungpo-gu, Seoul, 150-721, South Korea

J. L. Stimpert

Department of Economics and Business, Colorado College, 14 East Cache La Poudre Street, Colorado Springs, CO 80903, USALStimpert{at}ColoradoCollege.edu

Because current management theories evolved in the context of brick-and-mortar firms, this paper examines three key questions raised by the advent of e-business: (1) Will the strategy types found among e-business firms resemble Porter’s (1980) generic strategies? (2) Will we find performance differences among e-business firms pursuing different types of strategies? (3) Will we find differences in the strategy-performance relationships of pure online firms (pure plays) and firms with both online and offline operations (clicks-and-bricks)? We conclude that integrated strategies that combine elements of cost leadership and differentiation will outperform cost leadership or differentiation strategies. We also argue that, regardless of business strategy type, clicks-and-bricks firms that closely integrate their on-and offline operations will enjoy performance advantages over their pure play counterparts.

Journal of Management, Vol. 30, No. 5, 569-589 (2004)
DOI: 10.1016/j.jm.2003.12.001
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