Measures of competitive intensity - Analysis based on literature review

Abstract

Purpose: To systematize the existing approaches and tools used for measuring competitive intensity. Methodology: Systematic literature review along with critical literature review. Findings: Identification of two main approaches to measuring competition intensity: the first pertains to research based on experts' opinions and involves the use of questionnaires (primary sources), while the second is based on structural variables used with a variety of indexes (secondary sources). In addition, variables applied for the purpose of measuring the intensity of competition are divided into structural and behavioural. Research implications: Research implications are two-fold. Firstly, a distinction is made between various types of existing approaches to measuring competitive intensity. Secondly, research is carried out, inter alia, with regard to the actual object of certain measures, as opposed to their object stemming from commonly accepted definitions. Practical implications: The issue of measuring competition intensity occupies a prominent place in the discussion on the effectiveness of inter-organizational relationships. The findings outlined in this paper may help managers to develop/adopt the right approach supporting their strategic decisions. Originality: The paper provides a complex review of the existing methods and measures of competitive intensity. It systematizes recent knowledge about competitive intensity measurements.