ABSTRACT
Smart managers know that effective market definition is a critical success factor in business, service, and technology-based industries since these markets are characterized by high degrees of market and technological uncertainty. The Structure Conduct Performance (SCP) framework provides a conceptual basis for evaluating market definition in industrial and technology markets. Using a causal modeling approach, the SCP-derived hypotheses conduct and performance relationships were analyzed through covariance structure analysis. The unifying thread for SCP theory is that the subject matter is confined to business organizations, market and industry structures, marketing and related strategies, and business performance. Vernon recommends the construction of empirical SCP-based models for particular industries. Based on the market definition model, six SCP-derived hypotheses were developed. The first three consider market conduct and performance variables; the second triad examine market conduct-based relationships. Technological leadership is also a viable means to stay ahead of competitors in markets.
