7th Annual Conference CEPS, Brussels, Belgium

November 7, 2014

Regulatory Reform, Industrial Change, and Competitive Strategy:

Exploring the Subjective Understanding of the Transforming Postal Sector

Alberto Asquer

Marco Vatteroni

• Regulatory reforms and other sources of change in the business environment can result in the emergence of novel opportunities and threats

• What do we know about how pivotal industry actors (e.g., company executives) understand their business environment?

• Their understanding of the business environment is important for exploring strategic options, anticipating consequences of strategic actions, formulating strategy

1. Introduction

• A cognitive approach to business strategy • (Fiol and Huff, 1992; Ginsberg, 1994; Hodgkinson and Johnson,

1994; Huff and Jenkins, 2002; Kaplan, 2011; Krueger, 2007; Mezias et al., 2001; Narayanan et al., 2011; Phillips et al., 2008; Vaara et al., 2004)

• Some works argue that pivotal industry actors share a common understanding of the business environment, others that understanding is idiosyncratic, others that it depends on firm or industry membership

• Empirical works are rather inconclusive

1. Introduction

• The postal sector is exemplar or changed features of the business environment that call for a new understanding of the competitive scenario

• Liberalization and regulatory reform in the EU, digital technologies, new competitors

• (Dieke et al., 2009; Finger, 2006; Jaag, 2007; Panzar, 2008; Carbaugh, 2007; Geddes, 2005)

• What are sources of opportunities, threats and risk in the present postal sector? Do postal companies possess the resources, capabilities and skills to cope with them?

1. Introduction

• Various techniques for strategy cognitive mapping have been used but they do not avoid the critique of lacking operationalisation of subjectivities into quantitative and reproducible measures (Ginsberg, 1989)

• Here we use Q methodology (Stephenson, 1936, 1953) to explore whether there are shared subjective structures in beliefs and opinions on the postal business environment

2. Methodology

• Definition of the ‘concourse’ formed by about 80 statements drawn from academic works, business press and policy documents on the postal sector

• Definition of the Q sample formed by 25 sentences on perceived stability, growth potential, environmental complexity, strategic opportunities, policy options

• Definition of the P sample formed by 21 individuals (postal sector executives, managers and consultants)

• Online sorting (with FlashQ) and factor analysis (with PQ Method)

2. Methodology

2. Methodology

Online sorting:

2. Methodology

Factor matrix with defining sorts (in bold):

3. Analysis

Factor 1 defining statements:

3. Analysis

The “inadequate explorer”

“There are untapped opportunities in logistics, financial services, and e-government for the postal industry” (respondent comment)

Factor 2 defining statements:

3. Analysis

The “cautious examiner”

“Government regulation has made this industry very difficult for some participants” (respondent comment)

Factor 3 defining statements:

3. Analysis

The “puzzled optimist”

“Postal organizations face a stiff external complex environment … they compete with private couriers and with logistics operators” (respondent comment)

• Evidence of variety of ideas on the present business environment in the postal sector

• There is perception of opportunities in the midst of an understanding of the postal sector as a complex industry scenario, but lack of skills and competences and external constraints are believed to hamper strategic maneuvering

4. Discussion

Thank you