This document summarizes a research study that used Q methodology to explore the subjective understandings that industry actors have of the transforming postal sector. Interviews were conducted with 21 postal executives, managers, and consultants. Three distinct perspectives emerged: 1) "The inadequate explorer" who sees untapped opportunities but lacks capabilities to pursue them. 2) "The cautious examiner" who views the environment as difficult due to government regulation. 3) "The puzzled optimist" who recognizes opportunities amid an understanding of industry complexity but doubts about skills and external constraints. The study found variety in understandings of opportunities and threats but shared perceptions of a complex environment hampering strategic actions.

1. 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

2. 1. Introduction
• 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

3. 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

4. 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?

5. 2. Methodology
• 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

6. 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)

7. 2. Methodology

8. 2. Methodology
Online sorting:

9. 3. Analysis
Factor matrix with defining sorts (in bold):

10. 3. Analysis
Factor 1 defining statements:
“There are untapped opportunities in logistics,
financial services, and e-government for the postal
industry” (respondent comment)
The “inadequate explorer”

11. 3. Analysis
Factor 2 defining statements:
“Government regulation has made this industry very
difficult for some participants” (respondent
comment)
The “cautious examiner”

12. 3. Analysis
Factor 3 defining statements:
“Postal organizations face a stiff external complex
environment … they compete with private couriers
and with logistics operators” (respondent comment)
The “puzzled optimist”

13. 4. Discussion
• 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

14. Thank you