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Path analysis of the relationship between market share, business‐level conduct and risk
Author(s) -
Woo Carolyn Y.
Publication year - 1987
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250080206
Subject(s) - market share , path analysis (statistics) , sample (material) , market analysis , business , market share analysis , market risk , path (computing) , economics , marketing , industrial organization , actuarial science , econometrics , order (exchange) , statistics , finance , market microstructure , mathematics , computer science , chemistry , chromatography , programming language
This study evaluated the impact of market share on three measures of business‐level risk: ROI variation, share instability and the difference between growth in price and growth in cost. The analysis also included conduct variables which might bear upon these relationships. The sample was drawn from the PIMS data base and consisted of mature industrial businesses separated into three types of market environments. Path analysis was employed and yielded partial support for the risk‐reduction benefits of market share.