Strategic groups and rivalrous firm behavior: towards a reconciliation

Article Abstract:

The extent of rivalry between or within strategic groups is examined using more direct and fine-grained measures of competition rather than the common approach of inferring rivalry from measures of performance or structure. Data for the study are drawn from the US domestic airline industry. The airlines are divided into three strategic groups: the 'niche seekers,' those with the highest costs, longest trips and least number of airports served; the 'high-end flyer,' the airlines with the highest investment in marketing, greatest first class passenger revenue and emphasis on short trips; and the 'entrenched-dominant,' those with the lowest operational and marketing costs, serve the greatest number of airports and have the most experienced managers. Rivalry among these airlines is measured in terms of competitive activity, degree of rivalry instigation, price cutting, speed of response and 'tit-for-tat' imitation. The findings are discussed.

Scheduled Passenger Air Transportation, Air transportation, scheduled, Domestic Air Passenger Svc, Competition (Economics), Airlines, Market share, Domestic airlines

---

Top management team diversity, group process, and strategic consensus

Article Abstract:

A study examined the impact of demographic diversity within top management teams (TMTs) on group process and strategic consensus. This investigation looks at the individual effect of measures of demographic diversity on strategic consensus and also determines the effect of the incorporation of measures of group process. Four alternative models of the influence of demographic diversity and group process on the degree of TMT consensus regarding firm strategy were presented and tested on 76 high-technology firms in the US and Ireland. Findings revealed systematic links between demographic measures and one executive cognition measure, confirming a basic tenet of upper echelons theory. The study also showed that demographic diversity was negatively related to consensus. Certain dimensions of diversity were found to affect group processes. Finally, group processes also had an impact on strategic consensus.

Planning, Management Dynamics NEC, Work groups, Teamwork (Workplace), Executives, Business planning, Management techniques, Workplace multiculturalism, Workplace diversity, Decision-making, Group, Group decision making, Consensus (Social sciences)

---

Environmental variation, strategic change and firm performance: a study of railroad deregulation

Article Abstract:

The ties between strategic change and environmental variation are drawn from the literature to assess the effects of strategic management on the railroad industry. Hypotheses are offered about the effect of regulation and changes in regulation on performance, strategy, and strategic change. A survey was made of experts to identify the strategies of 27 railroads before and after deregulation. Five types of strategies and five kinds of strategic changes are found and detailed. Results indicate that most companies changed strategies because of environmental variation, and that those who made changes outperformed those who did not.

Analysis, Usage, Railroads, Deregulation, Railroad policy, Railroads and state

Similar abstracts:

• Abstracts: Strategic groups and performance: the U.S. insurance industry, 1970-84. Strategic groups: theory, research and taxonomy
• Abstracts: Auditor attention to and judgments of aggressive financial reporting. Expertise and auditors' judgments of conjunctive events
• Abstracts: Shares, debt, preferreds and hybrids. What is a share option worth? Reserve the place for a premium?
• Abstracts: Profitability and market share: a reflection on the functional relationship. Path analysis of the relationship between market share, business-level conduct and risk
• Abstracts: Strategic decision making. Breaking the silos: distributed knowledge and strategic responses to volatile exchange rates

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.