Tag Archives: optimal distinctiveness

Structural Hole-based Measures of Firm’s Strategic Competitive Positioning

Lee, Myunghwan, Gene Moo Lee, Hasan Cavusoglu, Marc-David L. Seidel. “Structural Hole-based Measures of Firm’s Strategic Competitive Positioning”, Working Paper.

This research methods paper proposes structural hole-based strategic competitive positioning (SCP) measures to capture a firm’s competitive and strategic positioning. Drawing on the network theory and structural holes concept, we operationalize SCP measures using an unsupervised machine learning approach called doc2vec, creating a similarity matrix of all existing U.S. publicly traded firms. This enables us to construct firm-level measures of strategic competitive positioning with minimal human intervention. To show the effectiveness of the proposed measures, we provide illustrative examples and conduct a case study of the imprinting effect of SCP at the time of initial public offerings on the subsequent performance of those IPOs. This paper makes a significant methodological contribution to the information systems and strategic management literature by proposing a network theory-based approach to measure firm-level competition and strategic positioning.