Toward a general theory of competitive dominance: comments and extensions on Powell (2003)
Thomas C. Powell and
Chris J. Lloyd
Strategic Management Journal, 2005, vol. 26, issue 4, 385-394
Abstract:
In a recent paper, Powell (2003) studied 20‐year performance in 21 industries, using an ordinal performance measure (‘wins’), and the Gini coefficient as a measure of competitive dominance. The findings suggest that firm performance is statistically indistinguishable from performance in non‐business domains such as politics, games, sports, and pageants. This paper extends these findings, developing the statistical foundations for a general theory of competitive dominance. The paper presents a Gibrat‐based null hypothesis, develops a decomposable index of competitive dominance, and suggests statistical procedures and empirical methods for future research. Copyright © 2004 John Wiley & Sons, Ltd.
Date: 2005
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