Published Paper Details:

This paper aims to consider the theoretical SCP framework from popular industrial organization theories and test the interaction between three important aspects namely industry structure, conduct and performance (SCP) for Indian Engine Industry. A total of eight variables have been shortlisted for testing purpose. The model is constructed with one structure variable, which is market concentration denoted by Herfindahl-Hirschman index, while debt equity ratio, advertising expense to sales ratio, size set up, efficiency in use of total assets, marketing expenses to sales ratio have been identified to explain conduct, and profit after tax, sales and return on net worth represent the performance covariates. Using multiple regression and time series data between the periods 1991 to 2017 for the identified variables, the model fit and variable significance have been evaluated. The empirical results confirm the validity of the structure-conduct-performance hypothesis. The findings emphasizes debt equity ratio, Profit after Tax and return on net worth as the key influencers of the concentrated market structure for the chosen Engine Industry under Indian Manufacturing Industry Segment.