Exploring intraindustry competitive heterogeneity

The identification of latent competitive groups

Wayne Desarbo, Qiong Wang, Simon J. Blanchard

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Purpose – The paper aims to examine the nature of competition within an industry by proposing and examining three separate sources of competitive heterogeneity: the strategies that industry members use, the performance that they obtain, and how effectively the strategies are utilized to obtain such performance results. Design/methodology/approach To do so, a restricted latent structure finite mixture model is devised that can quantify the contribution of these three potential sources of heterogeneity in the formulation of latent competitive groups within an industry. The paper illustrate this modeling framework with respect to COMPUSTAT strategy and performance data collected for public banks in the USA. Findings The paper shows how traditional conceptualizations via strategic or performance groups are inadequate to fully represent intraindustry heterogeneity. Originality/value This research paper proposes a new class of restricted finite mixturebased models, which fit a variety of alternative forms/models of heterogeneity. Information heuristics are developed to indicate “best model”.

Original languageEnglish (US)
Pages (from-to)94-123
Number of pages30
JournalJournal of Modelling in Management
Volume5
Issue number2
DOIs
StatePublished - Jul 6 2010

Fingerprint

Industry
Modeling
Strategic groups
Finite mixture models
Design methodology
Conceptualization
Heuristics

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research

Cite this

Desarbo, Wayne ; Wang, Qiong ; Blanchard, Simon J. / Exploring intraindustry competitive heterogeneity : The identification of latent competitive groups. In: Journal of Modelling in Management. 2010 ; Vol. 5, No. 2. pp. 94-123.
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Exploring intraindustry competitive heterogeneity : The identification of latent competitive groups. / Desarbo, Wayne; Wang, Qiong; Blanchard, Simon J.

In: Journal of Modelling in Management, Vol. 5, No. 2, 06.07.2010, p. 94-123.

Research output: Contribution to journalArticle

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