Strategic similarity and firm performance: the moderating role of national institutions

PurposeThis study aims to test the moderating effect of market-supporting institution on the strategic similarity–firm performance relationship.Design/methodology/approachThe present is study based on a large panel of firms from developed and emerging economies covering the period 2000–2014.FindingsHighly-developed market-supporting institutions improve the performance of firms that stick to industry's average strategies while weakly-developed market supporting institutions improve the performance of firms that deviate from industry norms.Originality/valueThis is the first paper that shows that the effect of strategic similarity on firm performance depends on the degree of development of market-supporting institutions.