ABSTRACT
Modern organizations typically operate in dynamic, competitive environments. Within the context, the critical issues of organizational survival and advancement often lead to calls for improvements in the levels of effectiveness and efficiency of performance. However, due to the relativity of the concepts of efficiency and effectiveness, productivity-driven organizations must take into consideration the performance of their competitors. The dynamic nature of the business environment also suggests the presence of a concept that is central to a productivity-driven organization, namely, that of the superior stable configuration. A decision maker tasked with a responsibility of improving performance of productivity-driven organization existing within a dynamic business environment must take into consideration internal and external factors. Once the decision maker identified the presence of heterogeneous groups of the competitors within the business environment it is reasonable to inquire whether the groups differ in terms of the efficiency of utilization of investment and production of revenues.
