Published in:KDI School of Pub Policy & Management Paper ; No. 06-20
Extent:
1 Online-Ressource (40 p)
Language:
English
DOI:
10.2139/ssrn.960658
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 2006 erstellt
Description:
The importance of strategic group analysis as an analytical construct for theory-building has long been recognized, and some empirical methods have been proposed in the strategic management field. As insightful as their methods are, these methods suffer from some limitations including the arbitrary and subjective choice of critical strategic dimensions and variables which may not induce objective and replicable groupings (McGee and Thomas, 1986; Barney and Hoskisson, 1990; and Peteraf and Shanley, 1997). In this paper, the stock return method (Cho and McKelvey, 1996) is further developed by resolving some of its limitations: lack of face validity and one year sample window. We apply the method to the airline, banking and oil industries over the period from 1988 to 1992 in order to examine the method's effectiveness for detecting industry and its substructure in an objective way. In our particular sample, the groups found show clear face validity, and the stability of groups is maintained across 1-, 2-, 3-, and 5-year windows. Given that objectivity and replicability are crucial in empirical studies, the stock return method may introduce a way to enhance the level of objectivity and replicability in the strategic group research methods