IDEAS home Printed from https://ideas.repec.org/a/mth/bmsmti/v15y2024i1p170-184.html

Market Share as a Firm Driver: Important Strategic Implications from Reviewing Literature from 1974-1995

Author

Listed:
  • Khalid A. Almurshidee

Abstract

The important strategic implications of market share were and still needed to be clearly understood. In particular, the relationship between market share and profitability have not been settled in business literature until the mid-ninety of last century. Researchers were able clarify this relationship mainly because of The possibilities it provided by PIMS data. This paper reviews the main literature on the different aspects and concepts of market share and its strategic implications from 1974-1995; the period in which this topic was in its peak; which is in return has yielded the most important academic thoughts and inferences to the subject of strategic planning. The most notable one is with regard to the conclusion that market share caused profitability has been proven to be overly simplistic.

Suggested Citation

  • Khalid A. Almurshidee, 2024. "Market Share as a Firm Driver: Important Strategic Implications from Reviewing Literature from 1974-1995," Business Management and Strategy, Macrothink Institute, vol. 15(1), pages 170-184, June.
    • Handle: RePEc:mth:bmsmti:v:15:y:2024:i:1:p:170-184
    as

    Download full text from publisher

    File URL: https://www.macrothink.org/journal/index.php/bms/article/download/21499/16833
    Download Restriction: no
    File URL: https://www.macrothink.org/journal/index.php/bms/article/view/21499
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Smirlock, Michael, 1985. "Evidence on the (Non) Relationship between Concentration and Profitability in Banking," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 17(1), pages 69-83, February.
    2. Robert D. Buzzell & Frederik D. Wiersema, 1981. "Modelling changes in market share: A cross‐sectional analysis," Strategic Management Journal, Wiley Blackwell, vol. 2(1), pages 27-42, January.
    Full references (including those not matched with items on IDEAS)

    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. Mousa Almanaseer, 2014. "The Impact of the Financial Crisis on the Islamic Banks Profitability - Evidence from GCC," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 5(3), pages 176-187, July.
    2. Wenyi Chu & Chien-Nan Chen & Chuang-Hung Wang, 2008. "The market share--profitability relationships in the securities industry," The Service Industries Journal, Taylor & Francis Journals, vol. 28(6), pages 813-826, July.
    3. Gangopadhyay, Partha & Jain, Siddharth & Bakry, Walid, 2022. "In search of a rational foundation for the massive IT boom in the Australian banking industry: Can the IT boom really drive relationship banking?," International Review of Financial Analysis, Elsevier, vol. 82(C).
    4. Sathye, M, 2002. "The Impact of Foreign Banks on Market Concentration: The Case of India," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 2(1).
    5. Allen N. Berger & David B. Humphrey, 1994. "Bank scale economies, mergers, concentration, and efficiency: the U.S. experience," Finance and Economics Discussion Series 94-23, Board of Governors of the Federal Reserve System (U.S.).
    6. Ashley S. Otto & David M. Szymanski & Rajan Varadarajan, 2020. "Customer satisfaction and firm performance: insights from over a quarter century of empirical research," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 543-564, May.
    7. Sapto Jumono & Noer Azam Achsani & Dedi Budiman Hakim & Muhammad Fidaus, 2016. "The Effect of Loan Market Concentration on Banking Rentability: A Study of Indonesian Commercial Banking, Dynamics Panel Data Regression Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 207-213.
    8. Panagiotis Staikouras & Christos Staikouras & Maria-Eleni Agoraki, 2007. "The effect of board size and composition on European bank performance," European Journal of Law and Economics, Springer, vol. 23(1), pages 1-27, February.
    9. Jacob A. Bikker, 2017. "Performance of the life insurance industry under pressure: efficiency, competition and consolidation," Chapters, in: Jacob A. Bikker & Laura Spierdijk (ed.), Handbook of Competition in Banking and Finance, chapter 9, pages 152-182, Edward Elgar Publishing.
    10. Killins, Robert N., 2020. "Firm-specific, industry-specific and macroeconomic factors of life insurers’ profitability: Evidence from Canada," The North American Journal of Economics and Finance, Elsevier, vol. 51(C).
    11. Berger, Allen N. & Boot, Arnoud W.A., 2024. "Financial intermediation services and competition analyses: Review and paths forward for improvement," Journal of Financial Intermediation, Elsevier, vol. 57(C).
    12. H. Semih Yildirim & Sunil K. Mohanty, 2010. "Geographic Deregulation and Competition in the U.S. Banking Industry," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 19(2), pages 63-94, May.
    13. Jalal D. Akhavein & Allen N. Berger & David B. Humphrey, "undated". "The Effects of Megamergers on Efficiency and Prices: Evidence from a Bank Profit Function," Finance and Economics Discussion Series 1997-09, Board of Governors of the Federal Reserve System (U.S.), revised 10 Dec 2019.
    14. J-L Hu & C-Y Fang, 2010. "Do market share and efficiency matter for each other? An application of the zero-sum gains data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(4), pages 647-657, April.
    15. Galletta, Simona & Goodell, John W. & Mazzù, Sebastiano & Paltrinieri, Andrea, 2025. "The impact of environmental disclosure and controversies on bank value," Journal of Economics and Business, Elsevier, vol. 134.
    16. Neeraj Gupta & Jitendra Mahakud, 2020. "CEO characteristics and bank performance: evidence from India," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 35(8), pages 1057-1093, August.
    17. Clemente Hernandez-Rodriguez, 2005. "Is the market concentration and interest-rates relationship in the Mexican commercial banking industry a sign of efficiency?," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 1(2), pages 7-38, Enero-Jun.
    18. Malgorzata Pawlowska, 2016. "The impact of market structure and the business cycle on bank profitability: does the SCP paradigm work? A case study in Poland prior to and during the financial crisis," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Combining micro and macro data for financial stability analysis, volume 41, Bank for International Settlements.
    19. Michiel van Leuvensteijn & Christoffer Kok Sørensen & Jacob A. Bikker & Adrian A.R.J.M. van Rixtel, 2013. "Impact of bank competition on the interest rate pass-through in the euro area," Applied Economics, Taylor & Francis Journals, vol. 45(11), pages 1359-1380, April.
    20. Tetsuji Okazaki & Michiru Sawada & Ke Wang, 2005. "The Fall of "Organ Bank" Relationships During the Wave of Bank Failures and Consolidations: Experience in Pre-war Japan (Published in "Corporate Ownership and Control" 4(4): 20-29, 2007. )," CARF F-Series CARF-F-052, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    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:mth:bmsmti:v:15:y:2024:i:1:p:170-184. 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: Technical Support Office The email address of this maintainer does not seem to be valid anymore. Please ask Technical Support Office to update the entry or send us the correct address (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/bms .

    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.