The creation and evolution of quasi markets in the public sector: a problem for strategic management
Article Abstract:
Strategic management in the public sector is examined given the development of quasi-markets. Extant strategic management research includes studies on the competitive strategies and directions of business firms. However, the politically-motivated introduction of managerialization in Britain's public sector has led to the extension of strategic study in this context, wherein the state is merely a buyer of services from competing public and private supplier. Economic theory extends the microeconomic, transactions costs and the Austrian school perspectives. In addition, sociological theory also contributes to the analysis, resulting in the following conclusions: that the new quasi-markets are more legitimate than efficient; that in such markets, relations overrule contracts in importance; that these markets are and will continue to be socially embedded; that competition in these markets will be status-based; and that market process is as essential as market structure.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1992
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Industry variety and performance
Article Abstract:
The benefits of competition among firms in an industry is examined in the context of the different life-cycle stages. Data from 12 industries, with four industries representing each of the three stages, are used to build a theoretical framework for this new perspective, in marked contrast with the traditional view of firm rivalry. In addition, foreign competition is substantial in two of the four industries in each stage. The results suggest a positive relationship between industry variety and performance, with strategic diversity in competition providing inter-firm gains. However, variety is inversely related to firm age, implying that the effects of revitalization policies on industrial variety must be carefully considered.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1993
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Stock market reaction to strategic investment decisions
Article Abstract:
The reaction of the stock market to corporations' announcements of strategic investment decisions was investigated. An analysis was made of 767 announcements of 248 firms in 102 industries. Three hypotheses were tested: the Shareholder Value Maximization hypothesis, which predicted the stock market would react positively; the Rational Expectations hypothesis, which predicted the market would not react; and the Institutional Investors hypothesis, which predicted the market would react negatively. The results indicated that the Shareholder Value Maximization hypothesis was the best predictor of the stock market's reaction.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1990
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