Management perceptions, industry structure and company performance

Janine Wong

Research output: ThesisDoctoral Thesis

211 Downloads (Pure)

Abstract

[Truncated abstract] Issues associated with competition, corporate strategic action and performance have been addressed from three general academic perspectives – marketing, business policy and strategic management, and industrial organisation economics. Using the Structure-Conduct-Performance (SCP) paradigm from industrial organisation economics, Porter (1980) developed the five forces model to analyse industry structure which determined one of three generic strategies a company should choose from to create a sustainable defendable position and outperform competitors. Porter (1980) argues corporate response to structure as the critical variable in determining industry and company performance. Here, the unit of analysis is the industry and Porter (1980) implicitly assumes managers within an industry define and observe the same objective environment. In marketing, Hunt’s (2010) resource – advantage (R-A) theory of competition asserts that the resources of firms within an industry are heterogeneous and immobile and therefore, managers must make strategic choices and these choices influence firm performance. Resources include market and competitor intelligence and some firms will have a comparative advantage in information that yields marketplace positions of competitive advantage and thus, superior financial performance. The unit of analysis is the manager and the manager or the top management team is central to the evaluation of environmental conditions which form the basis of strategic action. Consequently, managers develop strategies on the basis of imperfect perception of information.
Original languageEnglish
QualificationDoctor of Philosophy
Publication statusUnpublished - 2011

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