Abstract
Competitive strategies of Pakistani management consultancy firms were studied in order to examine their correlation with performance. Under the multi-dimensional concept of business strategy, a number of strategic management research studies have advanced the development of strategic groups. However, despite industrial needs, research on the business strategies of management consultancy firms in the context of a developing country has not been undertaken before. As an exploratory attempt, this study examined the extent to which Pakistan management consultancy firms (MCFs) are clustered around generic strategies and identified the recurring but distinct patterns of strategies used in competition. Due to the nature of this study, the methodology employed in testing the hypothesis has been positivistic. Overall, the methodology utilised has been generally of a mixed nature. This included review of literature to determine the feasibility and relevance of the work; an examination of texts and other materials related to the development of consultancy in Pakistan; the collection of primary data through postal questionnaire survey and protocol analysis. Primary data then analysed to form clusters according to the similarities of dimensions of strategy. Further statistical analyses were carried out to test clusters differences and the correlation between strategies and performance. The empirical results show that there are two strategic clusters and one non-strategic cluster. The empirical findings are generally consistent with the contention that commitment to strategies will result in higher performance than if the firm fails to adopt a strategy. The evidences of strategic cluster differences and performance differences between clusters of firms lend credibility to the notion of a positive strategy - performance correlation. The research shows the MCFs strategies in Pakistan are not exactly identical with Porter’s (1980) generic strategies, however, some similarities are found. Adopting generic strategies would not necessarily give a firm a competitive advantage. There are a number of possible success factors discussed in the literature. However, for management consulting firms’ success resides in their ability to create sustainable value for their clients. To achieve this, MCFs need to concentrate on targeting and tailoring products to serve specific client needs. A strategic advantage profile (SAP) is presented as a model to show a picture of the critical areas of strategic choice. Finally, the study could provide a starting point in understanding the strategic overview of professional service business in the context of a developing country. An important outcome from this study is the identification of possible further research that may be conducted. For example, the effect of individual firms' competencies upon competitiveness and performance could be a potential area for researchers.