Structure-Conduct-Performance Model Research Articles

Technical Efficiency and Marketing Performance of Turmeric Production

Abstract The study’s major purposes were to assess technical efficiency, determine its causes, and measure the marketing performance of turmeric production in the Sheko and Yeki areas. A two-stage random sampling approach was used to select 300 households. Cobb-Douglas and Tobit model were used to investigate efficiency levels and determinants. As a result, the average technical efficiency was 73.72. The average technical efficiency suggests that it was possible to raise turmeric production by 26.28 percent without utilizing additional inputs. Land, labor, oxen, seeds, herbicide, and urea all had a big impact on how much turmeric was produced. The Tobit model revealed that gender, age, household size, the number of plots, and market information substantially impacted technical efficiency. The structure conduct performance model was used to evaluate the performance of the Turmeric market. The findings showed that the markets for Turmeric in the region were non-competitive, with concentration ratios at the Sheko and Tepi markets of 78.5 and 64.2%, respectively. Policies aimed at motivating and strengthening the existing agricultural extension system, and providing appropriate marketing information, is required to improve Turmeric’s efficiency and Marketing performance.

The Swedish wood manufacturing sector: findings from a contextually adapted structure-conduct-performance model

ABSTRACT The scope of this article is an inter-industry study of the Swedish Wood Manufacturing Sector (WMS), examined from the perspective of the Structure-Conduct-Performance (SCP) paradigm in the theoretical field of Industrial Organization. The four research questions are: (1) identify the industries within the sector, (2) construct a contextually adapted SCP model and form the basis for hypotheses of relationships between the different variables in the model, (3) establish quantitative correlations between the variables, and finally (4) present a basically qualitative, explanatory interpretive analysis. The empirical investigation is a total population study of 311 firms. Nine industries are identified, and an SCP model is presented including four explanatory variables – exposure to international competition, value-added scope, domestic demand growth potential and (domestic industry) seller concentration – and two performance variables – industry profitability (ROA) and industry growth. The combined qualitative and quantitative explanatory analysis identifies some important relationships in the SCP model. The most prominent findings are the strong negative relationships between exposure to international competition and industry profitability and industry growth. Another finding is that strong positive relationships are found between the degree of value-added scope and industry profitability and industry growth.

Assessing Impact of Liberalization on Financial Performance Sustainability of Indian Pharmaceutical Industry using Structure Conduct Performance Model

The Indian Pharmaceutical Industry is ranked third largest by volume and fourteenth by value. It thus accounts for 10% of world’s production by volume and 1.5% by value according to Department of Pharmaceuticals, Government of India. Recognizing the immense potential for growth of Indian pharmaceutical industry and its direct impact on Indian economy the present paper tries to analyze the market structure of the Indian pharmaceutical firms and assess how the sustainable profitability of firms is affected using structure conduct performance model. The study founds out the sustainable profitability is statistically related to firm size, export and import, raw material expenses, power use and wage intensity but there seems to be insignificant effect of market share and mergers and acquisition on firm’s performance in terms of sustainable profitability.

Design of China’s Electricity Market Evaluation Indicators Based on SCP Model

The establishment of China’s electricity market has been conducted since 2015. In order to inform the condition of electricity market operation through evaluation index, this paper proposes an evaluation index system based on structure-conduct-performance (SCP) model, containing three principal aspects: market structure, participant behavior and market benefit. Meanwhile, considering the specific situations in China such as the differences among provinces and the immature rules in the initial stage of market construction, some of the market evaluation indexes should be specially designed in order to adapt to China’s national conditions.

NURSING LEADERSHIP AS A COMPETITIVE ADVANTAGE IN HOSPITALS CONSOLIDATION

This theoretical essay aims to propose a framework that enables to maintain the gains in hospitals involved with merger and acquisition processes by including the nursing leaderships. It implies a new perspective on the Structure, Conduct, Performance (SCP) model. If companies intend to grow with an adequate quality and sustainability standard, they must reverse the SCP model to CSP, in which managerial conduct, through nursing leadership, is the driver of the entire process, reflecting in the market structure and, consequently, in the performance. As methodological procedures, classical and contemporary academic studies on efficiency losses in merger and acquisition processes and nursing management have been critically reviewed and applied to support the argument in order to propose a framework.

Holistic Innovation, Market Structure, and Performance—Research on a Computer Decision-Making Method

Unlike the traditional SCP (Structure-Conduct-Performance) model, several Holistic Innovation ( HI ) policies formulated by policymakers under strategic guidance can optimize the market structure and performance. Owing to the value and difficulties of issues, controversies (especially those from abroad) abound. Few scholars have conducted interdisciplinary research in this domain using IT technology. This study begins with a simple firm theory model, extends the Cournot duopoly model, then constructs a theoretical model referring to HI, the market structure, and performance. Results of this study revise the traditional view that “firms/enterprises with market advantages (monopoly firms and oligarchs) are harmful to the market structure and its performance and reveal the boundary conditions for monopoly and oligopoly firms harming the market structure and performance.” In this study, we design the research model as an application software (with obtained patents). Through data calculation, we conclude that “if no more than eight oligarchs exist, then the market structure and performance will not be hurt.” Using firms’ data, the application software can accurately calculate and measure the market structure and performance in the context of HI, thereby helping firms and policymakers make precise strategic decisions. This study contributes to research on HI as well as on the market structure and performance. Moreover, this study expands the academic understanding on the tripartite relationship. The traditional SCP model regards the market structure as a difficult construct to change, and by merely conforming to it, innovation can influence improved performance. By contrast, this study argues that when HI becomes increasingly crucial and shared in the future, the market structure can be influenced and will demonstrate spectacular market performance.

Market structures in coastal shipping: what to expect in Canada following the Comprehensive and Economic Trade Agreement with the European Union?

After several years of negotiation between Canada and the European Union, the Comprehensive and Economic Trade Agreement (CETA) was ratified in early 2017. The regime set out by the Canadian Coasting Trade Act that reserves shipments of cargo between Canadian ports to Canadian vessels remains mostly untouched under CETA. Minor, yet potentially significant, changes to the regime are introduced by the trade agreement. Provisions are made to liberalize the repositioning of empty containers within Canada. The liberalization of public markets now allows European firms to compete in the Canadian dredging market. Finally, EU vessels can undertake some transshipment activity in Canada but this is limited to international cargo on the specific Montreal-Halifax route. The paper attempts to highlight some possible CETA’s consequences for domestic Canadian shipping markets. It uses industrial economics analytical tools drawn from a Structure-Conduct-Performance (SCP) paradigm. From a literature review, it reconstructs different cases of deregulation that occurred internationally. The observed transformations are then characterized in terms of the SCP model. The paper identifies some common impacts which occurred in different transportation industries after a deregulation process. Using these findings, it concludes by discussing potential impacts for domestic shipping markets in Canada.

Empirical analysis of R&D in the Japanese construction industry based on the structure conduct performance model

This study examines the reasons for research and development (R&D) inactivity in Japan’s construction industry. Specifically, it considers the structure of the construction industry in Japan and id...

Double externalities, market structure and performance: an empirical study of Chinese unrenewable resource industries

Externality is always hard to evaluate and definition, but the sustainable development of resource-based industries is restrained by it; particular, externalities of unrenewable resources can be divided into intergenerational and environmental negative externalities. In this paper, double externalities are respectively estimated by the users' cost method and contingent valuation method with Chinese data separately. Then, SCP (structure-conduct-performance) model were built by added double externalities into the structure-conduct-performance econometric models based on panel data. The results showed that the administrative mergers and reorganization which were prompted by the government only increased the scale but not getting efficiency; large state-owned enterprises produced more externalities as well as less profits; development of China's economy had still mainly based on resource depletion rapidly and been paying a big price of environmental externalities.

Propaedeutics in the theory of the industrial organisation: the SCP (structure, conduct, performance) model

The purpose of this article is to present the characteristics of the Structure-Conduct-Performance model of the industrial organization, as well as the criticisms it has provoked since its initial formulation in the 1950/1960s, up to today. Thus the evolution of the S-C-P paradigm has shown that it has always been criticized, by the followers of the Chicago School in the 1970s, then by the founders of the theory of contestable markets in the 1980s, and finally those of the “new” industrial economy at the beginning of the 1990s, by changing some of its basic characteristics. The fact remains that the S-C-P paradigm is never called into question.JEL Codes: L1, L22, L23

Competition in the Financial Services Sector: A Case of Kenyan Annuities Market

Competition in the financial services sector influences information, allocation and cost efficiency. The annuity market segment of insurance companies is particularly important as it is characterized by “entry and permanent lock in” of consumers to the firms thus creating permanent contractual claims. This study examines the annuity industry in Kenya using the Structure Conduct Performance (SCP) paradigm and sought to determine the market concentration, provide a behavioral explanation of how firms acquire and sustain market power and establish how the concentration affects conduct and performance of the annuity providers in Kenya. A mixed design is applied where secondary data is collected from the 8 firms offering annuity products in Kenya between 2009 and 2011. Focus group discussions are then conducted with key industry informants to explain the results. Market concentration is measured using the concentration ratio (C4) and the Herfindahl-Hirschman Index (HHI). An SCP model for the annuity market segment is then conceptualized. The findings point to a highly concentrated industry with HHI indices averaging 98% in the three years to 2011. Evidence generated shows that market power in the market is enabled by regulation, irreversible long term nature of the products, collusion between pension administrators and the players, lack of close substitutes to annuities and absence of differentiation – factors which have led to tendency for mergers and strategic partnerships, low returns for the annuitants, information asymmetry, low bargaining power of the consumers, diseconomies of scale and lack of innovation. The study recommends some policy implications to minimize the abuse of dominant positions by firms.

Study on the Management Performance Evaluation Model of Water Conservancy Agent Construction Project Based on Maturity and SCP Model

During the next National Twelfth Five-Year Plan period, more and more water conservancy projects will be used agent construction mode in our country. The research of the management performance evaluation model for water conservancy is significant in improving the agent construction system both in theory and in practice. Considering the characteristics of the water conservancy project, a conceptual model of management performance is established, including agent construction structure and agent construction conduct. And a three-dimensional management performance evaluation model of water conservancy agent construction project is constructed based on the SCP (Structure-Conduct-Performance) analysis paradigm. Through literature review and questionnaire survey, this paper further refined evaluation dimension. Finally, a comprehensive and practical performance evaluation index system which consists of the 13 first-class, 39 second-class indexes is established. Thus, lay solid foundation for the performance evaluation and performance improvement.

Modelo de concepção e avaliação da estratégia de territórios

Este artigo apresenta um modelo de concepção e avaliação de estratégia de territórios, desenvolvido a partir da expansão do modelo ECP (estrutura-conduta-performance) utilizado para empresas. O modelo, denominado ECP territorial, é aplicado ao Centro de Fortaleza, área que, assim como várias outras regiões centrais de cidades de grande porte em todo o mundo, enfrenta um processo acelerado de esvaziamento e demanda uma revitalização sustentável. O artigo analisa a competitividade da região e identifica oportunidades estratégicas de desenvolvimento, baseadas no suporte a setores econômicos nos quais o Centro possui vantagens. Os resultados comprovam a utilização do modelo ECP territorial para o planejamento de estratégias de bairros e sugerem a sua aplicação para territórios em geral.

Does market power affect performance in the dutch banking market? a comparison of reduced form market structure models

This paper investigates whether reduced form market structure models can be used to test whether there is market power in the Dutch banking market. First, a traditional Structure-Conduct-Performance (SCP) model is introduced. Next, a simple Cournot-model is introduced, which results in a more flexible measure of market power for different market structures. Finally, the inclusion of a modified Efficiency hypothesis reduces identification problems. Theoretically speaking, the Cournot model provides a better foundation for testing the existence of market power than the SCP model. Likewise, explicitly correcting for and including efficiency results in a more correct test of the Efficiency hypothesis. Empirical results for Dutch data confirm that the introduced improvements based on the Cournot models are the only ones resulting in tests that are consistent with the underlying models. Evidence from the Cournot model suggests that we cannot reject the existence of market power, although its impact on performance may be small. It also formalizes the need for additional research into the importance of strategic interaction among banks.

A Model for Structural Analysis of the Media Market

In recent years there have been calls for more extended use of industrial organization theory in media economic research and analysis. This article presents a model for structural analysis of the media market. Through combining the revised Structure Conduct-Performance model and the media product elements, a model is created that depicts the special characteristics of the media market.

Economic Education, Experimental Methods and the Structure-Conduct-Performance Paradigm

The Structure-Conduct-Performance (SCP) paradigm is commonly used in the field of industrial organization. The paradigm links market structure, firm behavior, and economic performance. Questions of industry organization, firm decision-making and economic efficiency in a wide variety of markets have been addressed using the SCP model. This paper applies the SCP paradigm to the area of economic education. To do this, an alternative model of economic education is developed. In this model, students are viewed as producers (of learning) while instructors determine the institutional setting and are one of the inputs into the production process. This view separates the areas where instructors may exert some control (setting class structure and providing good teaching) from the area where they have little control — student behavior. Using the model developed, this study employs an experiment to investigate student behavior. Students are placed in a strategic situation in which they must choose when and how much to study for weekly quizzes. The experiment represents a unique approach in economic education research and sheds light on student decision making.