... view, is mainly an internal assessment of the organization's resources. This approach stresses the importance of identifying and taking advantage of firm's resources and capabilities. In the following content, we will attempt to briefly introduce the two approaches separately and try to identify the role and process of each approach by means of comparing and contrasting them. 1. Analysis of Structure-Conduct-Performance approach: 1.1 An introduction of Structure-Conduct-Performance Model. The structure-conduct-performance approach was developed by Edward S. Mason (1939, 1949). According to this approach, "an industry's performance depends on the conduct of firms, which, in return, depends on the structure" (Carlton & Perloff 1994:3). Figure 1 (Appendix 1) illustrates the relationships among them. Bain (1968:2) has defined industry structure as "those characteristics of the organization of a market that seem to exercise a strategic influence on the nature of competition and pricing." There are many factors of an industry that can determine the ...

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