Measuring Industry Dynamics: Towards a Comprehensive Concept

We present a detailed literature-based analysis of the correct composition of the industry dynamics construct and an empirical test of the formative multidimensional character we propose. By providing a comprehensive definition and measurement concept of industry dynamics with the utmost degree of content validity, we supply the base necessary for future empirical research on that topic. Based on this measurement concept, advanced research methods such as structural equation modeling can exploit their full potential. Furthermore, we equip managers with a valuable tool that can assist them to better understand their industry environment and benchmark it against other industries.