Not all actions are the same. Consider two types of strategic actions:
growth actions aim to enhance a firm's position in its markets, for instance
by product launches or market entries. Joint actions create partnerships
or mergers and acquisitions (M&As) with other firms and
hence are the basis for new, joint positions.We argue that these types
of actions are triggered by different types of performance pressures:
firms facing set-backs in their pursuit of market share likely take growth
actions to strengthen their market position, while firms with low profitability
may lack the financial strength to take actions alone, and thus
are likely to take joint actions to improve their financial position. Both
types of actions are facilitated by firmresources, such as leader strategic
competences. However, joint actions may be particularly suitable for
firms that need to fill resource gaps.