Performance effects of strategic groups and task environments in food manufacturing industries : augmenting the Bain-Mason paradigm

• Main Author: Banik, Milon Marc
• Format: Others
• Language: en
• Published: McGill University 1992
• Subjects: Food industry and trade; Industrial organization (Economic theory) > Mathematical models.
• Online Access: http://digitool.Library.McGill.CA:80/R/?func=dbin-jump-full&object_id=56672

The concentration-profits relationship of the Bain-Mason paradigm is tested and an alternative "augmented model" is proposed which includes dimensions of task environments of food industries and industry strategy variables. The environment is characterized in terms of Dess and Beard's (1984) dimensions: munificence, dynamism and complexity. === The augmented model was found to be a better descriptor of factors affecting the performance of the food industries than the Bain-Mason model. Profitability was found to be positively related to industrial concentration, and negatively related to munificence and complexity. No significant relationship between dynamism and profitability was found. === Further studies on the performance of the food manufacturing industries should include the use of strategic group typologies based on strategic behaviour specific to the food industries. It is also recommended that investigations of industry environments be conducted using multivariate measures of munificence, dynamism and complexity.