CONVERGENCE ACROSS ALTERNATIVE METHODS FOR FORMING STRATEGIC GROUPS

We studied the convergence of three different methods for identifying group structure (strategic groups) in a single competitive environment . Using a version of the MTMM matrix, we tested the convergent validit y of the concept of strategic groups in a mature, geographically delim ited competitive environment. We find significant evidence of converge nce between competitive structures identified using archival and perce ptual data as well as those identified using archival measures of stra tegy and direct measures of competitors. There is limited evidence of convergence between competitive structures identified from perceptual and direct measures. Taken as a whole, these results are consistent wi th the emerging theory of strategic groups. We conclude that strategic groups are a theoretical construct and not a methodological artifact, as is suggested by some authors. (C) 1997 by John Wiley & Sons, Ltd.