Effects of stratey and industry on firm performance: An examination on Turkish leading manufacturing companies

This study analyzes the effects of industry structure and competitive strategies on firm performance of Turkish leading manufacturing companies. The results of regression and structural equations model analyses indicate that competitive strategies have more influence on firm performance than industry structure. Findings specifically show that market dynamism and threat of substitute products reduce firm performance while industry entry barriers partly increase it. However, the findings also demonstrate that bargaining power of suppliers and degree of competition have no effect on firm performance. Further analysis indicates that there is also an indirect effect on firm performance coming from the state support. Accordingly, state support influences firm performance through competitive strategies. On the other hand, all of the competitive strategies are positively related to firm performance at a significant level. Particularly hybrid strategy has a highly strong impact on firm performance.Keywords: Firm performance, industry, state support, competitive strategies, hybrid strategy, Turkey.