The simultaneous identification of strategic/performance groups and underlying dimensions for assessing an industry’s competitive structure

Wayne Desarbo, Rajdeep Grewal, Heungsun Hwang, Qiong Wang

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

PurposeThe purpose of this paper is to integrate aspects of the literature on strategic and performance groups and explicitly derive strategic/performance groups which exhibit differences with respect to both strategy and performance, as well as display associations and potential interrelationships between the two sets of variables. Design/methodology/approachA two-way clusterwise bilinear spatial model was formulated (e.g. a scalar products or vector multidimensional scaling model (MDS)) for the analysis of two-way strategic and performance data which simultaneously performs MDS and cluster analysis. An efficient alternating least-squares procedure was devised that estimates conditionally globally optimum estimates of the model parameters within each iterate in analytic, closed-form expressions. FindingsThis bilinear MDS methodology was deployed in the context of strategic/performance group estimation using archival data for public banks in the NY-NJ-PA tri-state area. For this illustration, four strategic/performance groups and two underlying dimensions were found. Practical implicationsConsideration of both strategy and performance data should be employed in describing the heterogeneity amongst firms competing in the same industry. Originality/valueThe paper provides a new spatial methodology to derive strategic/performance groups in any given industry to more completely summarize intra-industry heterogeneity.

Original languageEnglish (US)
Pages (from-to)220-248
Number of pages29
JournalJournal of Modelling in Management
Volume3
Issue number3
DOIs
StatePublished - Jan 1 2008

Fingerprint

Group performance
Competitive structure
Multidimensional scaling
Industry
Methodology
Interrelationship
Cluster analysis
Design methodology
Spatial model
Least squares
Strategic groups
Firm heterogeneity

All Science Journal Classification (ASJC) codes

  • Decision Sciences(all)
  • Strategy and Management
  • Management Science and Operations Research

Cite this

@article{f95e3b2c847e43b588cac6ab06dfb4c2,
title = "The simultaneous identification of strategic/performance groups and underlying dimensions for assessing an industry’s competitive structure",
abstract = "PurposeThe purpose of this paper is to integrate aspects of the literature on strategic and performance groups and explicitly derive strategic/performance groups which exhibit differences with respect to both strategy and performance, as well as display associations and potential interrelationships between the two sets of variables. Design/methodology/approachA two-way clusterwise bilinear spatial model was formulated (e.g. a scalar products or vector multidimensional scaling model (MDS)) for the analysis of two-way strategic and performance data which simultaneously performs MDS and cluster analysis. An efficient alternating least-squares procedure was devised that estimates conditionally globally optimum estimates of the model parameters within each iterate in analytic, closed-form expressions. FindingsThis bilinear MDS methodology was deployed in the context of strategic/performance group estimation using archival data for public banks in the NY-NJ-PA tri-state area. For this illustration, four strategic/performance groups and two underlying dimensions were found. Practical implicationsConsideration of both strategy and performance data should be employed in describing the heterogeneity amongst firms competing in the same industry. Originality/valueThe paper provides a new spatial methodology to derive strategic/performance groups in any given industry to more completely summarize intra-industry heterogeneity.",
author = "Wayne Desarbo and Rajdeep Grewal and Heungsun Hwang and Qiong Wang",
year = "2008",
month = "1",
day = "1",
doi = "10.1108/17465660810920573",
language = "English (US)",
volume = "3",
pages = "220--248",
journal = "Journal of Modelling in Management",
issn = "1746-5664",
publisher = "Emerald Group Publishing Ltd.",
number = "3",

}

The simultaneous identification of strategic/performance groups and underlying dimensions for assessing an industry’s competitive structure. / Desarbo, Wayne; Grewal, Rajdeep; Hwang, Heungsun; Wang, Qiong.

In: Journal of Modelling in Management, Vol. 3, No. 3, 01.01.2008, p. 220-248.

Research output: Contribution to journalArticle

TY - JOUR

T1 - The simultaneous identification of strategic/performance groups and underlying dimensions for assessing an industry’s competitive structure

AU - Desarbo, Wayne

AU - Grewal, Rajdeep

AU - Hwang, Heungsun

AU - Wang, Qiong

PY - 2008/1/1

Y1 - 2008/1/1

N2 - PurposeThe purpose of this paper is to integrate aspects of the literature on strategic and performance groups and explicitly derive strategic/performance groups which exhibit differences with respect to both strategy and performance, as well as display associations and potential interrelationships between the two sets of variables. Design/methodology/approachA two-way clusterwise bilinear spatial model was formulated (e.g. a scalar products or vector multidimensional scaling model (MDS)) for the analysis of two-way strategic and performance data which simultaneously performs MDS and cluster analysis. An efficient alternating least-squares procedure was devised that estimates conditionally globally optimum estimates of the model parameters within each iterate in analytic, closed-form expressions. FindingsThis bilinear MDS methodology was deployed in the context of strategic/performance group estimation using archival data for public banks in the NY-NJ-PA tri-state area. For this illustration, four strategic/performance groups and two underlying dimensions were found. Practical implicationsConsideration of both strategy and performance data should be employed in describing the heterogeneity amongst firms competing in the same industry. Originality/valueThe paper provides a new spatial methodology to derive strategic/performance groups in any given industry to more completely summarize intra-industry heterogeneity.

AB - PurposeThe purpose of this paper is to integrate aspects of the literature on strategic and performance groups and explicitly derive strategic/performance groups which exhibit differences with respect to both strategy and performance, as well as display associations and potential interrelationships between the two sets of variables. Design/methodology/approachA two-way clusterwise bilinear spatial model was formulated (e.g. a scalar products or vector multidimensional scaling model (MDS)) for the analysis of two-way strategic and performance data which simultaneously performs MDS and cluster analysis. An efficient alternating least-squares procedure was devised that estimates conditionally globally optimum estimates of the model parameters within each iterate in analytic, closed-form expressions. FindingsThis bilinear MDS methodology was deployed in the context of strategic/performance group estimation using archival data for public banks in the NY-NJ-PA tri-state area. For this illustration, four strategic/performance groups and two underlying dimensions were found. Practical implicationsConsideration of both strategy and performance data should be employed in describing the heterogeneity amongst firms competing in the same industry. Originality/valueThe paper provides a new spatial methodology to derive strategic/performance groups in any given industry to more completely summarize intra-industry heterogeneity.

UR - http://www.scopus.com/inward/record.url?scp=70350221540&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=70350221540&partnerID=8YFLogxK

U2 - 10.1108/17465660810920573

DO - 10.1108/17465660810920573

M3 - Article

VL - 3

SP - 220

EP - 248

JO - Journal of Modelling in Management

JF - Journal of Modelling in Management

SN - 1746-5664

IS - 3

ER -