Images of Competitive Space: A Study of Managerial and Organizational Strategic Cognition PDF
Preview Images of Competitive Space: A Study of Managerial and Organizational Strategic Cognition
Images of Competitive Space Other Books by the Author: The Competent Organization: A Psychological Analysis of the Strategic Management Process (with P. R. Sparrow) Images of Competitive Space A Study of Managerial and Organizational Strategic Cognition Gerard P. Hodgkinson © Gerard P. Hodgkinson 2005 Softcover reprint of the hardcover 1st edition 2005 978-1-4039-0296-2 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2005 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N. Y. 10010 Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin’s Press, LLC and of Palgrave Macmillan Ltd. Macmillan®is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN 978-1-349-50840-2 ISBN 978-0-230-51072-2 (eBook) DOI 10.1057/9780230510722 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Hodgkinson, Gerard P., 1961– Images of competitive space: a study of managerial and organizational strategic cognition/ Gerard P. Hodgkinson. p. cm. Includes bibliographical references and index. ISBN 978-1-349-50840-2 1. Industrial management–Psychological aspects. 2. Competition (Psychology) 3. Strategic planning–Psychological aspects. 4. Cognition–Mathematical models. 5. Organizational behavior–Mathematical models. 6. Real estate business–Great Britain–Case studies. I. Title: Managerial and organizational strategic cognition. II. Title: Strategic cognition. III. Title. HF5548.8.H554 2005 158.7–dc22 2004059170 10 9 8 7 6 5 4 3 2 1 14 13 12 11 10 09 08 07 06 05 To Peter Hodgkinson, Michael Huck, Nigel Nicholson and Michael Spratt, my dear brother and friends, whose immense generosity, loving support and wise counsel, over many years, have enabled me to bring this work (and so much more) to completion This page intentionally left blank Contents List of Figures xi List of Tables xii Foreword xvii Preface xix Publisher Acknowledgements xxv 1. Introduction 1 Research agenda and key themes 2 The study 5 Methodological approach 5 Structure of the book 7 2. The Cognitive Analysis of Competition in Industries and Markets 8 Background to the development of cognitive approaches for the analysis of competitive structures 9 Theoretical developments in the cognitive analysis of competitive structures 11 Competitor categorization processes 11 The social construction of competitive groups 16 The situated learning perspective 20 Empirical studies of competitive enactment and related conceptions: A review and critique 21 The limitations of small-scale exploratory and larger-scale cross-sectional studies 23 The limitations of extant longitudinal studies 24 The limitations of single informant, multiple organization designs 27 The case for studying individual and subgroup similarities and differences in mental models of competitor definition 29 Studies of the nature and extent of individual and subgroup variations and homogeneity in mental models of competitor definition 31 Towards fusion: Exploring the relative impact of task and institutional influences on actors’ mental models of competitive industry structures 34 vii viii Contents Methodological Issues in the analysis of competitor cognition 35 The elicitation of maps 36 The comparison of maps 39 The validation of maps 40 Implications 42 Towards a constructive alternative 42 Research agenda 43 3. The Research Context 45 The UK residential estate agency industry 46 Major developments in the industry 49 The entrance of national financial institutions 49 Estate agency co-operatives 53 Changes in the housing market 54 Operating practices 57 Other developments 58 Relevance of the industry to the research objectives 59 Conclusion 62 4. Research Methods and Design 63 The Research Instruments: Background and development 63 The competitor analysis questionnaire (CAQ) 63 The strategic locus of control scale 67 Strategy making behaviour, organizational structure and environment 69 Organizational size 70 Market buoyancy 71 Organizational performance 71 Environmental scanning 72 Biographical data and career history 73 Sampling and data collection procedures 73 Reliability analysis and data reduction 76 Reliability analysis 76 Data reduction 76 Construct validity of the scales 80 Individual-level analyses 80 Organizational-level analyses 80 Comparison of returners and non-returners 87 Summary and conclusions 91 5. Mental Models of Competitive Space and their Correlates 92 Assessing actors’ mental models of competitive space 92 Three-way scaling for the assessment of mental models 93 Basic analytical strategy 96 Multidimensional scaling analysis 97 Contents ix Results and discussion 98 The industry-level mental model 98 Validation of the CAQ 102 A note on the meaning and significance of participant source weights 103 Correlational analysis of the participant weights at T1 107 Correlational analysis of the participant weights at T2 109 Cross-lagged analysis 111 Summary and conclusions 112 6. Homogeneity and Diversity 114 Inter-organizational subgroup comparisons 116 Comparison of the dimension weights 117 North East Midlands Estates: An exception to the norm? 118 Comparison of the group space configurations 121 The PINDIS model 122 PINDIS analysis of the organizational subgroup configurations 125 Functional subgroup comparisons 128 Summary and conclusions 130 7. Longitudinal Stability 132 Longitudinal comparison of market conditions and strategic behaviours 133 Longitudinal analyses of mental models of competitive space 137 Longitudinal comparison of the participant source weight ratios 137 Comparison of the group space configurations 138 Summary and conclusions 141 8. Conclusions and Implications 143 Implications for theory 145 Competitive enactment and related conceptions 146 Industry recipes and cognitive inertia 148 Mental models of competitive space, strategy and performance 149 Wider theoretical implications 150 Methodological implications 152 Research design and analysis 152 Contextual embeddedness 153 Sampling characteristics 155 Size 155 Scope 155 Advances in cognitive modelling 156 Advances in knowledge elicitation 157 Advances in data analysis 158
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