Optimal Distinctiveness Positioning in Multiple Strategic Dimensions

The question to which extent companies should differentiate themselves relative to their competitors has attracted the attention of countless researchers. The recommendation derived from this work is that companies should strive for optimal distinctiveness, or being the same and different at the same time. Most theorizing and empirical analysis in the field focuses on a single strategic dimension, neglecting strategic multidimensionality. In recent years we observed an increasing shift to contextualize the implications of being optimally distinct, however, little is known about the implications of different strategic dimensions and the interplay of strategic conformity dimensions for firm success. In this paper, we conceptually and empirically examine how conformity in core strategy dimensions differs from peripheral strategy dimensions, and how these dimensions together influence firm performance. We find that extreme positioning in strategic conformity is important for firm success. Our results do not support our thesis of firm performance benefitting from gaining legitimacy through conforming in a core dimension, while differentiating in a peripheral dimension, but suggest that congruence in terms of conformity is important for firm success.