Structure, Conduct And Performance Research Articles

Testing of the Structure-Conduct-Performance Hypothesis for Industrial Banking Profitability: Evidence from Indonesia

This study aims to test the validity of the Structure Conduct and Performance (SCP) hypothesis on banking profitability in Indonesia. This research data comes from banking financial statements from the Financial Services Authority (OJK) and Bank Indonesia. The analysis method uses the panel data regression method. The banking industry studied includes 110 conventional commercial banks and Islamic banks from 2010-2019. This research has found that the profitability performance of the banking industry is statistically significantly influenced by concentration, market share, cost efficiency to generate revenue, bank size, net interest income margin, Bank Indonesia's benchmark interest rate, and economic growth. Meanwhile, inflation is insignificant. The contribution of the research was to develop of Structure Conduct Performance (SCP) theory. The SCP is applicable to Indonesian banking and it is the Hybrid of the Efficient-Structure Traditional Hypothesis which states that the effects of efficiency and market concentration have improved banking profitability performance. The combination of structure, market share, and efficiency supports the hypotheses on Efficiency and SCP Traditional. High banking profitability due to the combination of efficiency and market concentration formed by increased assets and mergers. Therefore, OJK and Bank Indonesia in encouraging asset improvement through future mergers can improve efficiency, the competitiveness of the banking industry, the and economic stability of Indonesia.

Struktur, Perilaku, dan Kinerja Pemasaran Cabe Jamu di Kecamatan Bluto

Java long pepper (Piper retrofractum Vahl.) is a potential export commodity. One of the centers of Java long pepper production in Indonesia is Sumenep Regency. However, in marketing, farmers only act as price takers, and prices fluctuate a lot. This study aimed to describe the structure, conduct, and performance of the Java Long Pepper market in Bluto District, Sumenep Regency. Sampling was carried out using the snowball sampling method to obtain a sample of 31 farmers, 2 small traders, and 1 large trader. The analysis technique used is the SCP (structure, conduct, and performance) with qualitative and quantitative approaches. Market structure is analyzed by calculating CR and IHH, market conduct by analyzing pricing methods, marketing channels, and marketing functions, and market performance by marketing margin and farmer’s share. Based on the research results, it is known that the market structure that occurs is an oligopsony with a high concentration and collusion price leadership types by the dominant firm. Market conduct shows that farmers cannot bargain, and traders determine absolute prices. Market performance is seen from marketing channel I which is considered the best, with a marketing margin IDR2.000,00 and a farmer’s share of 97.30%. This condition of imperfect market competition needs to be controlled and paid attention to so that it can be managed well, create healthy business conditions, and avoid monopoly.
 
 Keywords: Java long pepper, market performance, market conduct, market structure

Analysis, behavior, and market performance of sweet corn (Zea mays L. sacharata) certified structure in Leban Hamlet, Tawangargo Village, Karangploso Sub-District, Malang District

Introduction: Tawangargo Village, Karangploso District, Malang Regency is the largest sweet corn producing region in Karangploso District with a business base on developing vegetables that lead to special environmentally friendly products in Leban Hamlet. Quality assurance for fresh food with excellent certification requirements. The resulting product is safe for consumption or safe for pesticides. Sweet corn marketing system helps marketing institutions related to farmers in accessing consumers, making the price of sweet corn at the farm level with the price of corn accessed by different consumers. This research tries to analyze the market structure, study the market and improve the sweet corn market in Leban Hamlet, Tawangargo Village. Method: The basic method of research is analytical descriptive. Determining the location of research carried out intentionally or intentionally. Farmer sampling method using census method, with a total sample of 9 respondents. The sampling method used by traders uses the snowball sampling method with the number of broker 1 respondent and 1 respondent village collector. Data were analyzed by SCP (Structure, conduct, and performance) methods. Results: The results showed the structure of the sweet corn market in Leban Hamlet, Tawangargo Village has a tendency in imperfectly competitive markets namely the oligopsonistic market. This structure is completed inefficient markets. Market behavior discusses the marketing activities of sweet corn in Leban Hamlet. While the market performance (market performance) is 50%. Conclusion: This shows that the marketing of sweet corn in Leban Hamlet is included in the efficient category.

Value chain analysis of tomato: The case of Bure, Jabitehinan and North Mecha districts of Amhara regional state, Ethiopia

Ethiopia is still in the early stages of implementing agricultural value chains in general, and the tomato value chain in particular. Tomato production in Bure, Jabitehinan, and North Mecha Districts has played a critical role in generating income and creating jobs for many smallholder farmers, resulting in poverty reduction. Tomato growers, on the other hand, faced numerous challenges, including lack of clear tomato value chain depiction, poor product value addition, frail value chain linkage, and the perishable nature of the crop itself. As a result of these issues, tomato growers experienced low product prices, a lack of market information, and market inefficiencies, all of which limited the potential benefit of tomato value chain actors. Therefore, this study was aimed to mapping tomato value chain actors, their roles and linkages; to identify the major tomato market channels, and analyzing the structure, conduct and performance (S-C-P) of tomato value chain in the selected districts. Data were collected from both primary and secondary sources. Primary data were collected from randomly selected 280 tomato producers and 60 traders. To improve the validity of the data, the researchers were used focus group discussion and key informant interview in two rounds with a total size of 10 participants per discussion and secondary data were included from published articles and unpublished district reports. A multi-stage random sampling procedure was applied to select tomato producers and random sampling for traders. Descriptive statistics was applied to analyze data and generate valuable information on market structure, conduct and performance of tomato value chain. The survey result shows that input suppliers, producers, rural collectors, retailers, wholesaler, processors and consumers were identified as core tomato value chain actors. From the survey result, only 40.7% of the total respondents stated that tomato value addition was implemented and practiced. The perishability nature of the product and the low value addition practice of producers were led to less beneficiary in the tomato value chain. Processors obtained 44.82% of the profit share, which is the highest amount of profit share among other tomato value chain actors. Result from analysis of market concentration indicated that tomato market characterized by oligopolistic market structure with the buyers’ concentration ratio of 45.53%. Market conduct shows that 73.21% of the price of tomato was set by traders while producers were price taker. Regarding to the market performance analysis, the highest TGMM was registered in channel X which accounts the estimated percentage share of 75% of consumer price. This study recommended that the decision maker should take-up initiative for strengthening of tomato value chain performance by capacitating farmer association to increase their bargaining power and supporting actors involved in local tomato markets. In addition, it is recommended that the government of the region should developed a policy that reduce oligopolistic tendency of market structure so as to create competitive tomato market environment for all actor in the market. • Ethiopia is still an infant stage of implementing agricultural value chains particularly tomato value chain • Tomato growers, faced problems i.e., poor value addition, frail value chain linkage, & perishable nature of the crop itself deviates the potential benefit of tomato value chain actors. • 40.7% of the total respondents stated that tomato value addition was implemented and practiced. • Tomato market characterized by oligopolistic market structure of 45.53%. • Promoting value addition activities and reducing oligopolistic market structure leads to create competitive tomato market environment for all actors

SISTEM PEMASARAN JERUK SIAM GUNUANG OMEH DENGAN PENDEKATAN STRUCTURE, CONDUCT, PERFORMANCE (SCP) DI KABUPATEN LIMA PULUH KOTA

The Gunuang Ameh Siam orange (JESIGO) marketing system has complex problems, both in terms of price and non-price. The condition of the relatively high price of oranges (69.23%) compared to other types of oranges has resulted in uncompetitive orange market conditions. On the other hand, farmers as producers are not able to determine the selling price, the role of other marketing institutions is relatively more dominant. This study aims to analyze the marketing of JESIGO with a Structure, Conduct and Performance (SCP) approach. The research was carried out in Kenagarian Koto Tinggi during August 2019 to January 2020. The data used were primary and secondary data. Farmers were selected through purposive sampling (n=20) and snowball sampling for traders (n=11). The data were processed using qualitative and quantitative descriptive analysis. Based on the analysis of market structure, JESIGO marketing tends to lead to an oligopsony market structure. Judging from market behavior, there are 4 marketing channels and marketing functions performed by marketing institutions, namely the exchange function, physical function and facility function. Meanwhile, market performance analysis shows that the share of prices received by farmers (farmer's share) is quite high (>40%). The largest marketing margin is enjoyed by retailers in channel 3. The results of the analysis of the structure, behavior and market performance of the JESIGO orange illustrate that the market is in an efficient condition.

Structure, Conduct, and Performance (SCP) of Fruit Marketing in Ethiopia

This article has analyzed the structure, conduct and performance (SCP) of fruits marketing in Ethiopia. The specific objectives of the study were to identify the major fruit marketing channels and evaluate the market margins for key fruit marketing channels in the study area. A multi-stage sampling technique was used to select sample fruit farmers. The data were collected by semi structured questionnaires, and rapid market appraisal. Results from the descriptive analysis shows that local collectors and retailers are the most important buyers of fruit from producers. The market actors in the survey period were producers, rural assemblers, retailers, wholesalers and consumers. Fruit production was constrained by lack of market to absorb the production; large number of middlemen in the marketing system, absence (weakness) of marketing institutions safeguarding farmers' interest and rights over their marketable produces (e.g. cooperatives); lack of coordination among producers to increase their bargaining power. The contribution of this study provides additional evidence to the existing body of knowledge in marketing research by researching the significance of SCP in the fruit marketing chain analysis in Ethiopia. Besides, this investigation adds to the literature to better understand why some marketing chain succeeds and others fail, and it underpins the structure, conduct and performance model to be context specific. Keywords : Marketing System, Structure, Conduct and Performance, fruit, Ethiopia DOI: 10.7176/JMCR/68-01 Publication date: May 31 st 2020

Review of Company Law on Merger and Acquisition in India Using SCP Paradigm

The role of government in Mergers and Acquisitions (M&A) and governance with respect to the same need to be re-defined as M&A gains cutting edge phenomena. The paper intends to review, summarize and discuss various institutional laws regarding mergers and acquisitions (M&A) in India and thereby recommend fruitful policy guidelines for institutions and managers participating in merger and acquisition deals. This paper provides a review of the Report of the expert committee on company law on M&A published by Ministry of Corporate Affairs (MCA). The paper on M&A by MCA has summed up thirty-four points which can be classified under five broad aspects 1. Structure and Objective, 2. Implementation, 3. Potential Benefits, 4. Potential Constraints and 5. Proposed Remedies. These are further analyzed in the light of Structure, Conduct and Performance (SCP) paradigm.

Structure, Conduct and Performance of Fish Market in Central Ethiopia

The study aimed at analyzing the structure, conduct and performance of fish market in Lake Zeway, Central part of Ethiopia. A total of 24 traders from 6 markets were selected for the study purposively. Data analysis was carried out using descriptive statistics, for Structure, Conduct and Performance (SCP) approach. According to the results, there were five kinds of fish marketing chains in the study area. The fish market was oligopolistic in nature which controlled by few large wholesalers because of capital barriers to massively enter into the fish trade. The share of margins showed that retailers got the highest margin that all of the fish market agents in the study area. The study recommended necessary government interventions to make the fish market operate efficiently.

ANALISIS EFISIENSI PEMASARAN GABAH DAN NILAI TAMBAH BERAS DI KABUPATEN PESAWARAN

This research aims to analyze the efficiency of paddy marketing system and value added of rice in Pesawaran District. This research was conducted by survey method. The research location is chosen purposively i Kota Jawa Village and Gunung Sari Village, Way Khilau Subdistrict Pesawaran District with consideration that the location is one of the central of paddy production. The samples of this research were 51 paddy farmers who were selected by simple random sampling. The research data was collected in June–July 2017 and analyzed by descriptive and quantitative analysis. The method used in this research is the analysis of the model of S-C-P (structure, conduct, and performance) and used Hayami method to determine the value- added of the rice. The S-C-P model was used to analysis marketing system efficiency. The results showed that paddy marketing system in Pesawaran District was efficient, it could be seen from the producer’s share who greater than 50%. There were three rice milling unit (RMU) in research location and all of that rice miling unit gave a positive value-added to owner. Key words : efficiency, rice, S-C-P models, value-added

KONSEP PEMASARAN AGRIBISNIS : PENDEKATAN EKONOMI DAN MANAJEMEN

<em>Agribusiness marketing approach can be done through economic or management approach. The economic approach shows the overall presence of marketing channels that will be more efficient and determined by the Structure Conduct and Performance (SCP). The higher the percentage of market share indicates the strength of an enterprise in an industry. If the market share is relatively small and diffuse then the market tends to be in a competitive market reflected by market conduct and market performance On the other hand, a marketing approach to management is a business strategy of a company (group) to improve the efficiency or profit of a company and its networking. Value chain, supply chain, governance value chain analysis is part of the overall agribusiness marketing analysis, so players who have dominant power or market share will be visible in the marketing channel and the centralized market structure. The cooperation of small firms whose market share is relatively dispersed, the market structure tends to lead to a perfectly competitive market with the performances delivered to the market mechanism.</em>

Competitiveness of Togolese Banking Sector

Development of a country depends on its economic growth which depends also on several factors which can be both micro and macroeconomic. The financial sector is the lung of the economy; more exactly the banking sector contributes in a non negligible part to this growth. The competitiveness, effectiveness and efficiency of banking sector make it reliable to the economy. Unfortunately, evidences have shown that most Sub-Saharan countries don’t rely much on their financial sector, mainly due to challenges they face. This paper aims to analyze the competitiveness and the driving factors in Togolese banking sector with macroeconomic development using Structure-Conduct and Performance (SCP) framework and regression models. The research covers a period of sixteen years (from 2000 to 2015), with ten banks. This research proxies the asset in a panel A and profit in a panel B for the bank’s competitiveness. The results are of panel regressions with fixed effects and robust standard errors. Considering the Panel A, the variables Inter-Banks loans, customers loans, Inter-Banks Debts, Customers Debts are the driving factor of the competitiveness. However, the size of the bank proxied by profit has no impact on the competitiveness. The result suggests that the reform which has started since 1990 should be completed; there should be organizational and financial restructuring.

PENGARUH STRUKTUR, PERILAKU, EFISIENSI, DAN KINERJA SEKTOR KONSTRUKSI (GO PUBLIC) DI INDONESIA

The purpose of this paper is to analyze structure, conduct, efficiency and performance of construction industry and also the effect of market share (MS), efficiency (Ef), and company size (Size) towards the Return of Asset (ROA) of construction sector (go public) in Indonesia. The method that is used is Structure, Conduct and Performance (SCP) approach. Data Envelopment Analysis (DEA) is used to analyze the efficiency of construction sector. Quantitative analysis is used to discover the structure and performance of construction sector in Indonesia. The data were obtained from the Indonesian Stock Exchange. The data obtained and used in this paper are secondary data, which includes net profit, total asset, fixed asset, revenue and labor. The period which this paper covers is 2010 – 2015 (6 years). The result of SCP analysis shows that the structure of the construction sector in Indonesia is a strict oligopoly, with the average CR4 value above 50 percent. Conduct analysis in construction sector can be cooperate with competitors, pricing and promotion. While the performance of construction sector can be seen from its ROA, efficiency (Ef), and company size.

A Systems Thinking Approach to the Structure, Conduct and Performance of the Agricultural Sector in Ghana

The continuous growth in population and consumption, the intensity of competition for land, water and energy and the overexploitation of the ecosystem have all affected Africa's ability to sustain its food security and natural resources. In recent years, many promising agricultural development initiatives were unable to provide sustainable solutions to agricultural challenges in most parts of Africa, including Ghana, as a result of policy failures. The agricultural sector is a complex system and requires a holistic approach to deal with the root causes of challenges. This research therefore uses systems thinking tools, including causal loop diagrams and Bayesian belief network modelling, to develop new structural systems models whereby stakeholders can determine the components and interactions between the structure, conduct and performance (SCP) of the agricultural sector in Ghana, by using the first five steps of the Evolutionary Learning Laboratory. The results illustrate how the SCP elements interact together to influence the survival and growth of the agricultural sector. The study identifies that stakeholders adopt several strategies to survive and compete, which lead to overexploitation of the ecosystem. The results from the Bayesian belief network models indicate that the implementation of systemically determined interventions, policies and strategies could significantly improve the probability of business survival and growth from 58.8 to 73%. Also, the chances of improving the SCP could be increased from 39, 28.3 and 36.4 to 80.1, 55.9 and 62.4%, respectively, and these may vary based on the conditional probability tables. This paper contributes to the systemic approach to SCP, in that improvements to production and allocative efficiency may usher in a greater potential for improving food security, supporting the ecosystem and further strengthening agricultural sustainability. Copyright © 2016 John Wiley & Sons, Ltd.

A Structure, Conduct, and Performance Paradigm for the Industrial Analysis of India Over Two Decades of Economic Reforms

The Indian economic reforms of 1991 and other policy measures have brought changes in business conditions over the long-term. In order to assess how well firms have responded to these reforms and policy initiatives over the two decades of reforms in India, the structure-conduct and performance (S-C-P) approach was used to study the industrial sector of India. S-C-P, a standard industrial economics approach, has been considered as a brain child of the Harvard School of thought, which takes the structural, conduct, and market performance variables of firms into its ambit and tries to draw results on the basis of these variables. In this context, the present paper attempted to formulate or to modify the S-C-P framework according to the reforms and policy initiatives of the industrial sector of India, which takes all economic variables, apart from standard variables, which emerged as major changes for the industrial sector over the two decades of economic reforms in India. Albeit, the S-C-P approach is taken as a standard approach, but due to the emergence of various new variables after reforms and policy initiatives, it cannot be said that it depicts a true picture of the industrial sector until and unless it is formulated according to the Indian industrial sector and includes the major variables that reveal the true picture of the industrial sector of the Indian economy.

Deregulation and liberalisation, business cycles and performance of Indian industry

We examine inter-firm performance variation over two decades of deregulation and libersalisation measures that aimed at removing the barriers to competition and access to new technology in Indian industry. This is to understand how firms across industries have responded and performed over business cycles. In the structure-conduct-and-performance (S-C-P) framework, using step-wise discriminant analysis, we find debt ratio, export intensity, gross fixed assets, advertising, marketing and distribution expenses acted as principal discriminants between pre- and post-deregulation periods. Comparing short- and long-term impact of liberalisation measures, we find new investment, export intensity, gross fixed assets growth, capital output ratio, employee cost, advertising, marketing and distribution expenses and sales growth are the significant discriminants that differentiate the 1991-1993 and 2005-2007 period. Trends in the growth contributing sectors as well as major sub-sectors of manufacturing broadly confirm the prediction of discriminant analysis of slowdown of the Indian economy post-global financial crisis.

Market Chain Analysis of Agro-forestry Products: The Case of Fruit at Tembaro District, Kembata Tembaro Zone South Ethiopia

Ethiopia has a variety of fruit crops grown in different agro ecological Zones by small farmers, mainly as a source of income as well as food. The nature of the product on one hand and the lack of market system on the other hand have resulted in low producers’ price and hence low benefit by the producers. This study was carried out to analyse the market chain of agroforestry products such as mango, avocado and banana. Two kebeles were selected based on the presence of fruit production. Data was collected from 140 mango, banana and avocado producing households, 7 local collectors and 13 retailers through structured interview, focus group discussion, key informant interviews, market assessment as well as field observation. Structure, Conduct and Performance (SCP) approach was used to analyze avocado, banana and mango market also OLS (Multiple linear regression model) was used to analyzed factors that determine banana, mango and avocado market supply of the producers in the area. The market actors in the survey period were producers, rural assemblers, retailers, and consumers. Banana, mango and avocado market structure in the area shows the competitive nature. Among the different variables that were hypothesized as determining factors for volume of marketable supply the econometric result showed that price, access to extension service, distance, access to market information and quantity produced for mango and avocado were significant whereas active family size, distance, quantity produced, access to market information, and price for banana were significant. For each fruit types there are four marketing channels. Among the channels the producer-retailer-consumer channel was identified as the first important marketing channel in terms of volumes of each fruits transacted while the producer-local collector-consumer channel was identified as the least marketing channel in terms of volumes of each fruits transacted. Fruit trading in the study area is considered as a low profile activity mainly handled by female traders. There is a tradition that trading fruits in the study area is not by male. So, it is strongly recommended that stockholders will give awareness creation for the society in order to minimize such kind of tradition from the society and to encourage male fruit traders in the study area.

Export performance: multiple predictors and multiple measures approach

Purpose – The purpose of this paper is to examine the antecedents of export performance within the parameters of the structure-conduct-and-performance (SCP) paradigm, resource-based view (RBV), rational choice (RC) and perceptual view (PV), theoretical templates. Design/methodology/approach – The study surveyed continuing manufacturing exporters from New Zealand (n=118) using an electronic method. Linear regression analysis was used to determine the relationships among the groups of predictors and three types of measures. Findings – The results found that strategic factors (encapsulating RC) were strong predictors of both export intensity (EI) and export intensity growth, followed by export barriers (representing PV). Conversely, firm factors (representing an amalgamation of SCP and RBV variables) generated lower explanatory power in predicting export performance. Regarding measures of export performance, EI carried the highest efficacy. Practical implications – This research suggests export performance depends primarily on deliberate strategic initiatives (RC) (regarding, products, markets and approaches to order generation), and implicitly challenges the resource and natural selection based advantages inherent in firm factors. Originality/value – This is one of the few studies on export performance to test the explanatory power of competing theoretical views using a multiple measures approach. Insights from this research extend to the very definition of an internationalizing SME with significant implications for export researchers.

Advertising, concentration and profitability in Greek food manufacturing industries

The conventional framework for cross-sectional studies of industrial organisation focuses on the hypothesised relations among structure, conduct and performance (SCP). This paper investigates these relationships for the food and beverage manufacturing industries in a European country, i.e., Greece. 3SLS method is used to estimate the parameters of the profitability, concentration and advertising model for a sample of 38 four-digit industries in 1994. The main results, which are in line with the relevant empirical work, show that profitability is determined by advertising, which, in turn, is affected by both profitability and concentration, while the latter is determined by economies of scale.

Advertising, concentration and profitability in Greek food manufacturing industries

Abstract The conventional framework for cross-sectional studies of industrial organisation focuses on the hypothesised relations among structure, conduct and performance (SCP). This paper investigates these relationships for the food and beverage manufacturing industries in a European country, i.e., Greece. 3SLS method is used to estimate the parameters of the profitability, concentration and advertising model for a sample of 38 four-digit industries in 1994. The main results, which are in line with the relevant empirical work, show that profitability is determined by advertising, which, in turn, is affected by both profitability and concentration, while the latter is determined by economies of scale.

Advertising, concentration and profitability in Greek food manufacturing industries

AbstractThe conventional framework for cross‐sectional studies of industrial organisation focuses on the hypothesised relations among structure, conduct and performance (SCP). This paper investigates these relationships for the food and beverage manufacturing industries in a European country, i.e., Greece. 3SLS method is used to estimate the parameters of the profitability, concentration and advertising model for a sample of 38 four‐digit industries in 1994. The main results, which are in line with the relevant empirical work, show that profitability is determined by advertising, which, in turn, is affected by both profitability and concentration, while the latter is determined by economies of scale.