Industry Structure as an Antecedent of Organizational Performance: A Review of Literature

Abstract

Since an organization's responsiveness to changes in the competitive environment is highly dependent on how well they scan the business environment, organizations are constantly looking for ways to harness their characteristics to improve their performance and gain a competitive advantage in a hypercompetitive and dynamic marketplace. Organizations around the world have been forced to re-examine themselves internally to improve their performance as the growth and diversity of international business has brought new challenges and heightened their competitiveness. To stay relevant, organizations have been forced to re-examine themselves internally to improve their performance. Understanding the underlying structure of a company's industry today and in the future is a basic discipline in strategy creation, as evidenced by a large body of empirical literature indicating that industry structure has consistently been proven to impact organizational success. Given that empirical research have provided conflicting results demonstrating both positive and negative links, the argument over the impact of industry structure on performance is inconclusive. It could be argued that the lack of conclusive studies is due to previous studies' failure to include moderating and mediating variables. As a result, this study has systematically reviewed extant literature in the field of industry structure to develop a comprehensive definition of the construct, identify its perspectives and dimensions, and, ultimately, the review of literature has led to the development of a theoretical model that can be used in future empirical studies. As a result of industrial structure in organizations, the research also highlighted critical markers of organizational success. Finally, a set of linkages was modeled for the viewpoints of industry structure and organizational performance as a reference for future strategic management study. The goal of this study was to examine the current conceptual, theoretical, and empirical literature on industrial structure and organizational performance in order to identify knowledge gaps that may be used to guide future research.