The Relationship Between Cognitive Maps, Industry Complexity and Strategies Implemented: The Case of the Carpi Textile-Clothing Industrial System

This paper discusses the relationship between the subjective organisation and the perceived competitive structure of an industry based on an empirical study of the Carpi textile-clothing district, which partially replicates a previous study of the Scottish knitwear industry conducted by other authors (Porac et al., 1995). The initial hypothesis to be tested is that an industry may be broken down into a number of subsets of firms within which competition is perceived as being fiercer as compared with firms in different subsets. These subsets, or groups, correspond to the groups or types of firms into which decision-makers -- managers and entrepreneurial business owners alike -- perceive the industry as being divided. The results of the study are then compared to the empirical evidence from the research conducted by other authors. This comparison provides some interesting elements for investigating the relationships between industry complexity, cognitive maps and strategies implemented by the firms belonging to it. After suggesting a definition of complexity of an industry as the number of strategies implemented in it by competitors, we discuss the hypothesis that key-actors in the firms develop a mental picture of their environment that tends to become less comprehensive and accurate as the degree of complexity of the environment itself increases. Copyright Kluwer Academic Publishers 1998