Competitive intensity, market and non-market strategies, and firm performance: evidence from Malaysia

This paper reports on findings from a survey of 129 managers in Malaysia. Cost leadership, differentiation, and political non-market strategy (NMS) were significant drivers of firm performance. Competitive intensity was positively associated with performance and negatively moderated the relationship between cost leadership and performance but did not moderate the relationship between differentiation and firm performance. Political NMS positively moderated the competitive intensity-firm performance link. In conjunction with the Twelfth Malaysia Plan (12MP) crafted to pursue high-income nation status by the year 2025, the results of this study can help Malaysian firms identify strategic tools to enhance global competitiveness. The findings also help Malaysian policymakers and regulators strengthen their mechanisms to fight corruption and mitigate Malaysian firms from engaging in political NMS.