Does an Environment Serving Organization Based View Support A Product Market Strategy? A Firm Performance Analysis

Abstract

This research elucidates the concealed practice of an environment serving organization (ESO) based view in an industry which enhances a firms strategic position and performance. This research infers that companies which rely more on synergistic efforts actually support their overall capabilities in gaining and sustaining a competitive advantage. Using the firm environmental turbulence and strategic aggressiveness approach, this research postulates that the product market strategic activities and internal synergistic efforts of a company should be aligned with the business environmental turbulence to achieve and ensure a more sustainable performance. The statistical findings highlight that a firm’s competitivenesis built through a full understanding of the ESO-based view and combines the product market strategic aggressiveness with internal synergistic efforts. Furthermore, this study introduces the five levels of internal synergistic efforts to be considered following the statistical mediation analysis findings that internal synergistic efforts have a more mediating role than product market strategic aggressiveness in affecting the strong relationship between environmental turbulence and firm performance. Keyword : ESO, Environmental, Product Market