Antecedents of Convergence and Divergence in Strategic Positioning: The Effects of Performance and Aspiration on the Direction of Strategic Change.

This article presents an investigation of performance and aspiration as drivers of convergence-divergence in strategic positioning in terms of resource-allocation decisions. The study, based on the behavioral theory of the firm, suggests two unexplored kinked-curve relationships between performance gaps and strategic convergence and divergence. Empirical analysis of dyad-level data in the United States food processing industry reveals that the direction of a firm's strategic change is shaped by its aspiration level, its performance level, and the performance gap between it and the firm it selects as a model. This study offers indications of when and how a firm moves closer to or further away from other competing firms in its strategic position.