The Influence of the Barriers of Hybrid Strategy on Strategic Competitive Priorities: Evidence from Oil Companies.

Abstract

This study examines the impact of the barrier of adopting hybrid strategy on strategic performance using the oil sector in Iraq as a case. International oil companies consider various strategies in order to achieve superior performance. The procedure needs to overcome certain essential barriers for the adoption of the hybrid strategy that combines the cost leadership and differentiation strategy. The questionnaire was distributed online due to the COVID-19 pandemic that led to the closure of companies in the country. Out of the 537 questionnaires answered, 483 were used for further analysis which yielded usable response rate of 90%. The structural equation modeling results confirmed that the high costs of technologies, the priority of other external matters, inadequate industry regulation, insufficient supply, organizational capabilities, strategic capabilities, and financial capabilities are significantly related to strategic performance. The researchers recommend conducting an in-depth study of the phenomenon based on theoretical and empirical foundations, especially considering the relationship between the barriers of a hybrid strategy and strategic performance based on linear and non-compensatory relationships. This research sheds light on the barriers to adopting the hybrid strategy required by the oil sector as it relies on continuous production.