Diversification, Strategic Groups and the Structure-Conduct- Performance Relationship: A Synthesis

Theory and research in strategic management: swings of a pendulum

“…There are content areas in the IO economics literature concerned with competition across multiple markets (Gimeno, 1994), to include strategic groups (e.g., Greening, 1979;Newman, 1973Newman, , 1978, mutual forbearance (e.g., Edwards, 1955;Bernheim & Whinston, 1990), and product-line rivalry (e.g., Brander & Eaton, 1984;Bulow, Geanakoplos, & Klemperer, 1985). While these three content areas focus on different mechanisms, the central prediction is that tacit collusion produces rivalry reduction and is more likely among firms sharing similar product-market scope because each of them realizes that intense rivalry will harm their individual performance.…”

Theory and research in strategic management: Swings of a pendulum

“…The development of multi-point competition traces its primary theoretical origin to IO economics (mainly oligopoly theory). There are content areas in the IO economics literature concerned with competition across multiple markets (Gimeno, 1994), to include strategic groups (e.g., Greening, 1979;Newman, 1973Newman, , 1978, mutual forbearance (e.g., Edwards, 1955;Bernheim & Whinston, 1990), and product-line rivalry (e.g., Brander & Eaton, 1984;Bulow, Geanakoplos, & Klemperer, 1985). While these three content areas focus on different mechanisms, the central prediction is that tacit collusion produces rivalry reduction and is more likely among firms sharing similar product-market scope because each of them realizes that intense rivalry will harm their individual performance.…”

Impacts of digital transformation on firms' competitive advantages: A systematic literature review

“…In addition to Porter's work, Hunt (1972) and Newman (1978) introduced the “strategic groups” concept, where industries were influenced by the presence of relatively homogeneous groups of firms. Caves and Porter (1977) introduced the concept of “mobility barriers,” referring to intraindustry dynamics of firms and groups, and Newman (1978) and Greening (1980) performed some works on the “competitive dynamics” topic.…”