Quality differentiation for competitive advantage: a contingency approach

Abstract

This study examines the performance consequences of aligning the competitive strategy of quality differentiation with each of the four fundamental industry life cycle stages: introduction, growth, maturity, and decline. Reports results from a questionnaire survey of CEOs in a mid‐western state in the USA. The findings suggest that small manufacturing firms can achieve a sustainable competitive advantage vis‐à‐vis quality differentiation across three stages of industry evolution: introduction, growth, and maturity.

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