Analysis of industrial structure, firm conduct and performance - A case study of the textile industry

Abstract

With the analysis of the industrial economic theory structure - conduct - performance model, the study investigates the existence of significant relationship among market structure, conduct and performance. Twelve Taiwan companies are studied during the study period from 2006 to 2012 which are analysed with fixed effect and random effect of panel data and ordinary least squares estimation. The empirical result backs the statement by “Structuralism” that market structure (market share, entry barrier and capital intensity) directly affects firm conduct (R&D intensity) and performance (ROA).