Skip to main content

Evaluating Managers’ Perceptions of Competitive Industry Structure

  • Conference paper
  • 1629 Accesses

Abstract

Strategic group analysis portrays an industry as a few categories of firms, but researcher selected variables curtail its reflection of managerial reality. From a cognitive perspective it is shown that managers simplify their environment by grouping similar competitors. It is argued that they do not perceive industry structure in the manner proposed by economists. Interviews amongst managers in the oil pump industry showed evidence of them simplifying their environment by grouping competitors. None perceived the industry as economists suggest and more similar perceptions were seen between managers in the same firm than between different firms.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD   169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Bower, Gordon and J. Clapper 1989 Experimental methods in cognitive science. Foundations of Cognitive Science Ed. M. Posner. London: MIT Press.

    Google Scholar 

  • Bruner, Jerome. 1957 “On perceptual readiness” Psychological Review 64 (2): 123–152.

    Article  Google Scholar 

  • Day, David and R. Lord 1992 “Expertise and problem categorisation: the role of expert processing in organisational sense-making”. Journal of Management Studies. 29 (1): 35–47.

    Article  Google Scholar 

  • Easton, Geoff. 1988 “Competition and Marketing Strategy” European Journal of Marketing 27 (2): 31–49.

    Article  Google Scholar 

  • Grinyer, P. and J-C. Spender 1979 “Recipes, crises and adaption in mature businesses” International Studies of Management & Organisations 9 (3): 113–133.

    Google Scholar 

  • Gripsrud, Geir and K. Gronhaug 1985 “Structure and Strategy in Grocery Retailing: a sociometric approach” Journal of Industrial Economics 33 (3): 339–347.

    Article  Google Scholar 

  • Hays, William 1988 Statistics New York: Holt, Rinehart, Winston.

    Google Scholar 

  • Howard, John and J. Sheth 1969. The Theory of Buyer Behavior. New York: J. Wiley

    Google Scholar 

  • Huff, Anne. 1990 Mapping Strategic Thought. New York: J. Wiley.

    Google Scholar 

  • Hunt, Michael. 1972. “Competition in the Major Home Appliance Industry 1960–1970”.Dissertation. Harvard University.

    Google Scholar 

  • Johnson, Gerry 1987. Strategic Change and the Management Process. Oxford: Basil Blackwell.

    Google Scholar 

  • Kiesler, Sara and L. Sproull. 1982 “Managerial responses to changing environments: perspectives on problem sensing from social cognition” Administrative Science Quarterly 27 (Dec): 548–570.

    Article  Google Scholar 

  • Kotler, Philip 1991 Marketing Management. Englewood Cliffs: Prentice Hall.

    Google Scholar 

  • McGee, John and H. Thomas. 1986. “Strategic groups: Theory, research and Taxonomy”. Strategic Management Journal. 7: 141–160.

    Article  Google Scholar 

  • McKeown, B. and D. Thomas 1988 O-Methodology Beverley Hills: Sage.

    Google Scholar 

  • Mervis, Carolyn and E. Rosch 1981. “Categorization of natural objects” Annual Review of Psychology 32: 89–115.

    Article  Google Scholar 

  • Porac, Joseph, H. Thomas and B. Emme 1987. Knowing the Competition: the Mental Models of Retailing Strategists. In. Business Strategy and Retailing. Ed. Gerry Johnson. Chichester: J. Wiley.

    Google Scholar 

  • Porac, Joseph, H. Thomas and C. Baden-Fuller 1989 Competitive groups as competitive communities: the case of Scottish Knitwear manufacturers. Journal of Management Studies 26 (4): 397–416.

    Article  Google Scholar 

  • Porac, Joseph and H.Thomas 1990 “Taxonomic mental models in competitor definition” Academy of Management Review 15 (2): 224–240

    Google Scholar 

  • Porter, Michael. 1985 Competitive Advantage. Boston: Free Press.

    Google Scholar 

  • Porter, Michael. 1991 “Towards a Dynamic Theory of Strategy”. Strategic Management Journal 12: 95–117.

    Article  Google Scholar 

  • Reger, Rhonda. 1990. “Management Thought Structures and Competitive Positioning”. In Mapping Strategic Thought. Ed. Ann Huff New York: J. Wiley.

    Google Scholar 

  • Schwenk, Charles. 1988. The Essence of Strategic Decision Making. Lexington: Lexington Books.

    Google Scholar 

  • Simon, H. 1957 Models of Man. New York: J. Wiley.

    Google Scholar 

  • Spender, J-C. 1989. Industry Recipes. Oxford: Basil Blackwell.

    Google Scholar 

  • St John, Caron and L. Rue 1991. “Co-ordinating mechanisms, consensus between marketing and manufacturing and marketplace performance”. Strategic Management Journal. 12: 549–555.

    Article  Google Scholar 

  • Stubbart, C.I. 1989 “Managerial Cognition: A missing link in management research.” Journal of Management Studies 26, 325–347.

    Article  Google Scholar 

  • Triffin, R. 1962 Monopolistic Competition and General Ecruilibrium Theory. Cambridge, Massachusettes: Harvard University Press.

    Google Scholar 

  • Tversky, Amos and D. Kahneman. 1974 “Judgement under uncertainty: heuristics and biases. Science 185 (Sept): 1124–1131.

    Article  Google Scholar 

  • Woodside, Arch. 1987 “Measuring customer awareness and share of requirements awarded to competing industrial distributors” Advances in Business Marketing 2, 141–163.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Academy of Marketing Science

About this paper

Cite this paper

de Chernatony, L., Daniels, K., Johnson, G. (2015). Evaluating Managers’ Perceptions of Competitive Industry Structure. In: Sirgy, M., Bahn, K., Erem, T. (eds) Proceedings of the 1993 World Marketing Congress. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-17323-8_15

Download citation

Publish with us

Policies and ethics