This article reports on an investigation of firm strategies in the software and information technology service industry in Tunisia. The research contributes to the ongoing discussion on competitiveness of information and communication technology businesses in developing countries. It is based on the results of a survey conducted in 2004 with software and information technology service companies in Tunisia looking at their strategy implementation, utilization of external input factors, market focus and global reach. The article presents an analytical framework for the quantification of competitive challenges through the concept of strategic groups which clusters the industry structure along patterns and barriers in the strategic space of firms. The analysis identifies six groups, and discusses their competitive positions along the different patterns of diversification, internationalization and corporate control. The article argues that the view on the heterogeneity of the industry structure is key to an enhanced understanding of competitiveness. The results show that the concept of the strategic space of the software and information technology service industry and its challenges in Tunisia may be captured to some extend by prior research. However, the complexity of the strategy construct still conceals much of the true sources of performance and international success that are frequently discussed at both the economic and business policy level.
Accepted by : Co-Editor Martin G. Evans
