IDEAS home Printed from https://ideas.repec.org/a/ehu/cuader/52008.html
   My bibliography  Save this article

Competitive dynamics of strategic groups in the Portuguese banking industry

Author

Listed:
  • Travassos Rosário, Albérico
  • Carrizo Moreira, António
  • Macedo, Pedro

Abstract

[EN] The objective of this paper is to analyse the retail banking behaviour in Portugal (2008–2010, 2011–2013 and 2014–2016), by taking into account the financial and economic assistance programme (FEAP) – monitored by the European Commission, the European Central Bank and the International Monetary Fund – that Portugal went through and that started in 2011. With competitive dynamics it is possible to understand the evolution of competitive strategies of the institutions of a strategic group within a given time horizon. Data were collected after consultation of reports and accounts of Banks from Banco de Portugal database. The results were analysed and discussed in light of the theory of strategic groups and their competitive dynamics allows us to conclude that: Banks implemented different competitive strategies; Strategic groups have dissimilar resources; and Strategic groups display different strategies. The 2008–2010 period can be considered as a ‘deregulated’ period, the 2011–2013 as a period of ‘imposed regulation’, and the 2014–2016 as a period of ‘strategic consolidation’ with strategic changes that have prompted strategic groupings of the various institutions as consequence of a low mobility barrier strategy.

Suggested Citation

  • Travassos Rosário, Albérico & Carrizo Moreira, António & Macedo, Pedro, 2021. "Competitive dynamics of strategic groups in the Portuguese banking industry," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
  • Handle: RePEc:ehu:cuader:52008
    as

    Download full text from publisher

    File URL: https://addi.ehu.es/handle/10810/52008
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jeremy C. Short & David J. Ketchen & Timothy B. Palmer & G. Tomas M. Hult, 2007. "Firm, strategic group, and industry influences on performance," Strategic Management Journal, Wiley Blackwell, vol. 28(2), pages 147-167, February.
    2. Wayne S. DeSarbo & Rajdeep Grewal & Rui Wang, 2009. "Dynamic strategic groups: deriving spatial evolutionary paths," Strategic Management Journal, Wiley Blackwell, vol. 30(13), pages 1420-1439, December.
    3. Wiersema,Margarethe & Bowen, Harry P., 2005. "Corporate international diversification: the impact of foreign competition, industry globalization and product diversification," Vlerick Leuven Gent Management School Working Paper Series 2005-6, Vlerick Leuven Gent Management School.
    4. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & Gino Cattani & Joseph F. Porac & Howard Thomas, 2017. "Categories and competition," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 64-92, January.
    5. Pam Lewis & Howard Thomas, 1990. "The linkage between strategy, strategic groups, and performance in the U.K. retail grocery industry," Strategic Management Journal, Wiley Blackwell, vol. 11(5), pages 385-397, September.
    6. Canhoto, Ana & Dermine, Jean, 2003. "A note on banking efficiency in Portugal, New vs. Old banks," Journal of Banking & Finance, Elsevier, vol. 27(11), pages 2087-2098, November.
    7. Chen, Tianxu & Tribbitt, Mark A. & Yang, Yi & Li, Xiaomei, 2017. "Does rivals' innovation matter? A competitive dynamics perspective on firms' product strategy," Journal of Business Research, Elsevier, vol. 76(C), pages 1-7.
    8. Victor Mendes & João Rebelo, 2003. "Structure and performance in the Portuguese banking industry in the nineties," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 2(1), pages 53-68, April.
    9. Leon Zucchini & Stephan Böhmer-Horländer & Tobias Kretschmer, 2019. "Competitive pressure: competitive reactions at the group-level," Industry and Innovation, Taylor & Francis Journals, vol. 26(6), pages 643-666, July.
    10. Rhee, Munsung & Mehra, Satish, 2006. "Aligning operations, marketing, and competitive strategies to enhance performance: An empirical test in the retail banking industry," Omega, Elsevier, vol. 34(5), pages 505-515, October.
    11. Wayne S. DeSarbo & Rajdeep Grewal, 2008. "Hybrid strategic groups," Strategic Management Journal, Wiley Blackwell, vol. 29(3), pages 293-317, March.
    12. Avi Fiegenbaum & Howard Thomas, 1993. "Industry And Strategic Group Dynamics: Competitive Strategy In The Insurance Industry, 1970–84," Journal of Management Studies, Wiley Blackwell, vol. 30(1), pages 69-105, January.
    13. Pätäri, Satu & Puumalainen, Kaisu & Jantunen, Ari & Sandstrüm, Jaana, 2011. "The interface of the energy and forest sectors--Potential players in the bioenergy business," International Journal of Production Economics, Elsevier, vol. 131(1), pages 322-332, May.
    14. Ming-Jer Chen & Ken G. Smith & Curtis M. Grimm, 1992. "Action Characteristics as Predictors of Competitive Responses," Management Science, INFORMS, vol. 38(3), pages 439-455, March.
    15. Enrico Bonetti & Francesco Schiavone, 2014. "Identifying and Mapping Strategic Groups in the Fashion Industry," International Studies of Management & Organization, Taylor & Francis Journals, vol. 44(1), pages 55-69, January.
    16. Arturs Kalnins & Wilbur Chung, 2004. "Resource‐seeking agglomeration: a study of market entry in the lodging industry," Strategic Management Journal, Wiley Blackwell, vol. 25(7), pages 689-699, July.
    17. Prior, Diego & Surroca, Jordi, 2006. "Strategic groups based on marginal rates: An application to the Spanish banking industry," European Journal of Operational Research, Elsevier, vol. 170(1), pages 293-314, April.
    18. Luis Escobar & Harrie Vredenburg, 2011. "Multinational Oil Companies and the Adoption of Sustainable Development: A Resource-Based and Institutional Theory Interpretation of Adoption Heterogeneity," Journal of Business Ethics, Springer, vol. 98(1), pages 39-65, January.
    19. Hui Li & Kannan Srinivasan, 2019. "Competitive Dynamics in the Sharing Economy: An Analysis in the Context of Airbnb and Hotels," Marketing Science, INFORMS, vol. 38(3), pages 365-391, May.
    20. Rhonda K. Reger & Anne Sigismund Huff, 1993. "Strategic groups: A cognitive perspective," Strategic Management Journal, Wiley Blackwell, vol. 14(2), pages 103-123, February.
    21. Margarethe F. Wiersema & Harry P. Bowen, 2008. "Corporate diversification: the impact of foreign competition, industry globalization, and product diversification," Strategic Management Journal, Wiley Blackwell, vol. 29(2), pages 115-132, February.
    22. Lozano-Vivas, Ana & Pastor, Jesús T., 2010. "Do performance and environmental conditions act as barriers for cross-border banking in Europe?," Omega, Elsevier, vol. 38(5), pages 275-282, October.
    23. Graham Leask & David Parker, 2007. "Strategic groups, competitive groups and performance within the U.K. pharmaceutical industry: Improving our understanding of the competitive process," Strategic Management Journal, Wiley Blackwell, vol. 28(7), pages 723-745, July.
    24. Enrico Bonetti, 2014. "Strategic groups in the fashion industry," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 13(2), pages 153-172.
    25. Amel, Dean F & Rhoades, Stephen A, 1988. "Strategic Groups in Banking," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 685-689, November.
    26. Peter Ebbes & Rajdeep Grewal & Wayne DeSarbo, 2010. "Modeling strategic group dynamics: A hidden Markov approach," Quantitative Marketing and Economics (QME), Springer, vol. 8(2), pages 241-274, June.
    27. Gerry McNamara & David L. Deephouse & Rebecca A. Luce, 2003. "Competitive positioning within and across a strategic group structure: the performance of core, secondary, and solitary firms," Strategic Management Journal, Wiley Blackwell, vol. 24(2), pages 161-181, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carrizo Moreira, António, 2021. "Introduction to the Special Section: Innovation," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peter Ebbes & Rajdeep Grewal & Wayne DeSarbo, 2010. "Modeling strategic group dynamics: A hidden Markov approach," Quantitative Marketing and Economics (QME), Springer, vol. 8(2), pages 241-274, June.
    2. Antonio Gozzi & Roberta Scarsi & Riccardo Spinelli, 2015. "Un?analisi dei raggruppamenti strategici nella fornitura di servizi logistici," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2015(2), pages 231-257.
    3. Matteo Farnè & Angelos T. Vouldis, 2021. "Banks’ business models in the euro area: a cluster analysis in high dimensions," Annals of Operations Research, Springer, vol. 305(1), pages 23-57, October.
    4. Vikas Anand & Mahendra Joshi & Anne M. O'Leary-Kelly, 2013. "An Organizational Identity Approach to Strategic Groups," Organization Science, INFORMS, vol. 24(2), pages 571-590, April.
    5. Ángela González-Moreno & Francisco Sáez-Martínez, 2008. "Rivalry and strategic groups: what makes a company a rival?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 12(3), pages 261-285, August.
    6. Epure, Mircea & Kerstens, Kristiaan & Prior, Diego, 2011. "Bank productivity and performance groups: A decomposition approach based upon the Luenberger productivity indicator," European Journal of Operational Research, Elsevier, vol. 211(3), pages 630-641, June.
    7. Zucchini, Leon & Kretschmer, Tobias, 2011. "Competitive Pressure: Competitive Dynamics as Reactions to Multiple Rivals," Discussion Papers in Business Administration 12308, University of Munich, Munich School of Management.
    8. Zuniga-Vicente, Jose Angel & de la Fuente-Sabate, Juan Manuel & Suarez Gonzalez, Isabel, 2004. "Dynamics of the strategic group membership-performance linkage in rapidly changing environments," Journal of Business Research, Elsevier, vol. 57(12), pages 1378-1390, December.
    9. Kazan, Erol & Tan, Chee-Wee & Lim, Eric T.K & Sørensen, Carsten & Damsgaard, Jan, 2018. "Disentangling digital platform competition: the case of UK mobile payment platforms," LSE Research Online Documents on Economics 86345, London School of Economics and Political Science, LSE Library.
    10. Cheng, Shu-Ling & Chang, Hae-Ching, 2009. "Performance implications of cognitive complexity: An empirical study of cognitive strategic groups in semiconductor industry," Journal of Business Research, Elsevier, vol. 62(12), pages 1311-1320, December.
    11. Pankaj Patel & Sherry Thatcher & Katerina Bezrukova, 2013. "Organizationally-relevant configurations: the value of modeling local dependence," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(1), pages 287-311, January.
    12. Hałaj, Grzegorz & Żochowski, Dawid, 2006. "Strategic groups in Polish banking sector and financial stability," MPRA Paper 326, University Library of Munich, Germany.
    13. Short, Jeremy C. & Palmer, Timothy B., 2003. "Organizational performance referents: An empirical examination of their content and influences," Organizational Behavior and Human Decision Processes, Elsevier, vol. 90(2), pages 209-224, March.
    14. Yusen Dong & Senhua Chen & Yixue Wu, 2023. "Keeping up with the Joneses: The role of investee peers corporate environmental responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1841-1855, July.
    15. Enrique Claver & Jose Molina & Juan Tari, 2003. "Strategic groups and firm performance: the case of Spanish house-building firms," Construction Management and Economics, Taylor & Francis Journals, vol. 21(4), pages 369-377.
    16. Agnieszka Karman, 2022. "The Homogenization of Carbon Management Practices: How Organizations Response to Isomorphic Pressures to Reduce GHG Emissions," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 148-173.
    17. Branco, Manuel Castelo & Rodrigues, Lúcia Lima, 2008. "Social responsibility disclosure: A study of proxies for the public visibility of Portuguese banks," The British Accounting Review, Elsevier, vol. 40(2), pages 161-181.
    18. Day, Diana L. & Lewin, Arie Y. & Li, Hongyu, 1995. "Strategic leaders or strategic groups: A longitudinal data envelopment analysis of the U.S. brewing industry," European Journal of Operational Research, Elsevier, vol. 80(3), pages 619-638, February.
    19. Chih-Yi, Su & Bou-Wen, Lin, 2021. "Attack and defense in patent-based competition: A new paradigm of strategic decision-making in the era of the fourth industrial revolution," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    20. Odlin, Denis, 2019. "Domestic competitor influence on internationalizing SMEs as an industry evolves," Journal of World Business, Elsevier, vol. 54(2), pages 119-136.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehu:cuader:52008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alcira Macías Redondo (email available below). General contact details of provider: https://edirc.repec.org/data/ieahues.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.