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Toward a general theory of competitive dominance: comments and extensions on Powell (2003)
Author(s) -
Powell Thomas C.,
Lloyd Chris J.
Publication year - 2005
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.438
Subject(s) - dominance (genetics) , null hypothesis , economics , stochastic dominance , econometrics , politics , positive economics , mathematical economics , microeconomics , political science , biochemistry , chemistry , law , gene
In a recent paper, Powell (2003) studied 20‐year performance in 21 industries, using an ordinal performance measure (‘wins’), and the Gini coefficient as a measure of competitive dominance. The findings suggest that firm performance is statistically indistinguishable from performance in non‐business domains such as politics, games, sports, and pageants. This paper extends these findings, developing the statistical foundations for a general theory of competitive dominance. The paper presents a Gibrat‐based null hypothesis, develops a decomposable index of competitive dominance, and suggests statistical procedures and empirical methods for future research. Copyright © 2004 John Wiley & Sons, Ltd.