Strategic Groups: an Application to Foreign and Domestic Firms in Spain

M.P. Donsimoni and V. Leoz-Arguelles
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M.P. Donsimoni: Université catholique de Louvain, CRIDE
V. Leoz-Arguelles: Université catholique de Louvain, CRIDE

No 1981035, Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: The purpose of this paper is to go one step further and to abandon the industry-wide approach, in order to take into account the existence of strategic groups. The hypothesis according to which industries with substantial proportion of strategic groups do not fit the structure performance paradigm as well as industries with lesser amount of these groups had to be validated. Indeed, the former industries behave closer to strategic groups than the latter. Hence, if one believes, as is the case here, that strategic groups, not industries, respond differentially to the same market constraint, one must abandon the industry approach and substitute a strategic group approach.

Pages: 16
Date: 1981-09-01
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