Lahore School of Economics

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The effect of management leadership on competitive strategies, manufacturing strategies and firm performance: A case of uncertain environment
May 31, 2014

Shamila N. Khan

Zonaira Shehper

Sana Azar

The purpose of this study was to test the management leadership on competitive strategies with manufacturing strategy and firm performance in an uncertain economy. This paper proposes that management leadership has a strong influence on cost leadership and differentiation that affects the manufacturing strategies (cost, delivery, flexibility and quality) leading to firm performance. Four hundred questionnaires were distributed to the firm operating in an uncertain developing economy. Two hundred and seventy-eight questionnaires were found to be usable. A strong evidence for the leadership relationship with competitive strategies, manufacturing strategies leading to firm performance confirmed the theory.

Thus whether the firm chooses to pursue cost leadership or differentiation strategy, emphasis was found on flexibility to be strongly related to firm performance in an uncertain economy. However, if a firm choses differentiation strategy they need to focus on quality in order to gain market share, profitability and overall competitive advantage.

Shamila Nabi Khan is a Lecturer and PhD scholar at the Lahore School of Economics. She had several publications in journals related to Behavioral Sciences. She has presented in international conferences in Lahore, Paris and Athens and conducted several workshops in Lahore School of Economics.

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