The impact of managerial cognitions on the structure‐conduct‐performance (SCP) paradigm

Abstract

Purpose The structure‐conduct‐performance (SCP) paradigm was devised over half a century ago in an effort to contextualise and explain industry dynamics. However, the framework suffers from a number of shortcomings and, consequently, it has been criticised over the years. Yet, despite its weaknesses, it has survived its criticisms and is still used in industrial organisations (IOs) for the purposes of competitive analysis. In time, the framework has also been adopted by strategic management, and in the area of strategic groups it holds a prominent position in the literature. This study aims to address this issue. Design/methodology/approach The study is cross‐sectional and is based on primary research. It involves face‐to‐face semi‐structured interviews and the sample size is near to the sampling frame of the research. Findings The paper develops a cognitive dimension and, based on the findings of primary research, extends the framework in a manner that provides a better insight into competitive dynamics. Originality/value This article views the SCP paradigm from a strategic perspective and discusses its limitations.

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