Session 245

Competitors, strategy, and competitive dynamics

Track E

Date: Monday, October 8, 2012

 

Time: 16:30 – 17:45

Paper

Room: North Hall


Session Chair:

  • PuayKhoon Toh, University of Texas at Austin

Title: Asymmetric Rivalry within and Between Strategic Groups

Authors

  • Felipe Ruiz-Moreno, University of Alicante
  • Francisco José Mas-Ruiz, University of Alicante
  • Antonio Ladrón de Guevara-Martínez, Pompeu Fabra University

Abstract: We examine rivalry within and between strategic groups defined according to the size of their members. We hypothesize that the degree of rivalry will depend on whether the competitor is within the same group as the competing firm or in a different group. We estimate the effect of group-level strategic interactions on firm performance. Our empirical analysis reveals that the rivalry behavior within and between strategic groups is asymmetric, which supports the dominant-fringe relation between firms, wherein large firms expect to experience strong intra-group rivalry and no reaction from smaller firms. Moreover, smaller firms expect to experience no intra-group rivalry and a small amount of retaliation from large firms. Therefore, it is important to consider the size of firms that constitute the relevant strategic groups.

Title: Competition and Illicit Quality

Authors

  • Lamar Pierce, Washington University in St. Louis
  • Jason Snyder, University of California, Los Angeles
  • Victor Bennett, Duke University
  • Michael Toffel, Harvard University

Abstract: In this paper, we argue that competition can lead organizations to provide illicit quality that satisfies customer demand but violates laws and regulations and that this outcome is particularly likely when price competition is restricted. Using 28 million vehicle emissions tests from more than 11,000 facilities, we show that increased competition is associated with greater inspection leniency, a form of illicit quality that customers value but is illegal and socially costly. Firms with greater numbers of local competitors pass customers at considerably higher rates and are more likely to lose customers they fail to pass, suggesting that the alternatives that competition provides to customers intensify pressure to illegally provide leniency.

Title: Pushed by Rivals into Alternative Technological Domains: The Effects of Imitation Deterrence on Resource Reallocation

Authors

  • Francisco Polidoro, University of Texas at Austin
  • PuayKhoon Toh, University of Texas at Austin

Abstract: Prior research has established imitation deterrence as a key building block of sustainable competitive advantage. By deterring a firm from building similar resources, rivals can protect their resources’ value and uniqueness and better leverage them to create a sustainable competitive advantage. Yet, prior research has largely overlooked the question of what type of resources a firm builds upon being deterred. This study investigates how rivals’ imitation deterrence in a technological domain induces a firm to reallocate resources from that domain into another. By examining the effects of imitation deterrence on resource reallocation, this study suggests that deterrence, while pushing other firms out of a domain, also produces a potentially insidious effect, in that it pushes these firms into alternative domains, which heightens substitution threats.

Title: Sequences of Competitive Moves and Effects on Firm Performance

Authors

  • Sruthi Thatchenkery, Stanford University
  • Riitta Katila, Stanford University
  • Eric Chen, Onyx Pharmaceuticals

Abstract: In this paper, we argue that firm performance depends not only on the aggregate characteristics of competitive move repertoires, as is typically examined in studies of competitive dynamics, but also on the time-paced pattern in which moves are made. Using sequence analysis on an experiential simulation dataset, we find that firms carry out time-paced competitive sequences that adhere to three archetypal patterns. We also identify which patterns are most performance-enhancing. Our findings show that firms whose sequences follow regular (i.e. continuous or periodic) patterns and whose sequences do not conform to their competitors perform well. We contribute to the competitive dynamics literature by integrating concepts from organizational learning to analyze the rhythm and pacing of competitive behavior.

All Sessions in Track E...

Sun: 08:00 – 09:15
Session 270: New Frontiers in the Computational Approaches to Strategy and Organization
Sun: 09:30 – 10:45
Session 271: Competing for Innovation
Sun: 11:15 – 12:30
Session 272: Unified Theory of Industry Evolution
Sun: 15:15 – 16:30
Session 52: Networks and competition
Session 66: Competitive strategies in transition
Mon: 08:00 – 09:15
Session 55: Risk, uncertainty and competitive advantage
Session 64: Diverse strategies: Diversification and the evolution of competition
Mon: 09:30 – 10:45
Session 65: Resourceful competitors: Competitive strategies and the resource based view
Mon: 13:30 – 14:45
Session 54: The dynamics of dynamic capabilities
Mon: 16:30 – 17:45
Session 57: Finding your niche: Niche Strategies and Competitive Advantage
Session 245: Competitors, strategy, and competitive dynamics
Tue: 08:00 – 09:15
Session 56: Competitive dynamics meet competitive strategy
Session 254: Capital Markets and Efficiency
Tue: 11:00 – 12:15
Session 58: Innovation and competitive strategy
Tue: 14:15 – 15:30
Session 60: The sustainability of competitive advantage
Session 61: Value creation and value capture
Tue: 15:45 – 17:00
Session 62: Acquiring competitive success? Mergers and acquisitions
Tue: 17:30 – 18:45
Session 59: Tempus fugit? Competitive strategy over time


Strategic Management Society

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