Session 56

Competitive dynamics meet competitive strategy

Track E

Date: Tuesday, October 9, 2012


Time: 08:00 – 09:15

Common Ground

Room: Terrace 1


  • Joseph Clougherty, University of Illinois at Urbana-Champaign

Title: Economic and Social Perspectives of Competitive Rivalry: Untangling Ceremonies, Status, and Competitive Rivalry


  • Curtis Moore, West Virginia University
  • G Tyge Payne, Texas Tech University
  • Igor Filatotchev, City University London

Abstract: We theorize and examine how participation in competitive bidding ceremonies affects firm performance directly, as well as indirectly through increased competitive rivalry. Using longitudinal data, we propose to examine the role that symbolic and substantive participation in public bidding ceremonies affects a firm’s reputation, status, and financial performance. Consequently, we suggest that analyzing interfirm competition through both economic and social perspectives offers important insights into understanding interfirm competition.

Title: Foreign Firms, Competition and Crowding Out


  • Evis Sinani, Copenhagen Business School
  • Bersant Hobdari, Copenhagen Business School

Abstract: Multinational firms affect local firms and industries in multiple ways. The empirical literature has focused on technology spillovers that are reflected in increased productivity of local firms. The literature, however, points to the crowding out of local firms with only the surviving firms benefiting from productivity spillovers. Unlike previous studies we analyze the heterogeneous effect that foreign entry has on local firms, given their distance from the technological frontier. We combine the study of foreign firms’ entry and local firms’ productivity with the impact on the survival of local firms. To this end we have assembled a panel dataset of Czech firms in the manufacturing sector. We find that closeness to the frontier, stronger competition, higher foreign entry rate and foreign presence in the industry increase firm level productivity growth.

Title: Reflexive and Selective Competitive Behaviors: The Socio-Cognitive Drivers of Competitive Activity and Inter-firm Rivalry


  • David Major, Indiana University
  • Patrick Maggitti, Villanova University
  • Ken Smith, University of Rhode Island
  • Curtis Grimm, University of Maryland
  • Pamela Derfus, University of Maryland

Abstract: Competitive dynamics research has established the important role that the level of firm competitive activity has on rival response and firm performance. Less understood, however, are the inputs that influence firm activity, specifically, the extent to which firms reflexively repeat prior activity versus selectively taking actions. Drawing from the Awareness-Motivation-Capability framework, we develop and test theory that firm decision-makers are not only predisposed to behave reflexively, but are also influenced by contextual factors, suggesting cognitive selection. With a longitudinal sample of marketing activity of 58 firms and 2,164 firm-rival-dyads in eleven industries, we find that firms undertake both reflexive and selective competitive processes. Positive effects of prior activity are moderated by the firm’s own prior performance, as well as the rivals’ similarity and industry standing.

Title: Shaping the Competitive Playing Field: Integrating Competitive Dynamics with Structuration Theory


  • Michael Withers, Texas A&M University
  • Hermann Ndofor, Indiana University - Indianapolis

Abstract: The competitive environment is an important consideration when examining competitive behavior and dynamics. While research has a fairly well developed understanding of how industry conditions affect competitor behavior, scant research has examined how industry conditions are influenced by competitors’ actions and responses. This study sets out to empirically examine how industry competitive dynamics (firm actions and competitor reactions) influence changes in the industry structure. We integrate the competitive dynamics perspective with structuration theory to provide a dualistic perspective of agency and structure in the competitive dynamics context. In particular, we develop theory and hypotheses about how competitor actions and responses lead to changes in industry dynamism, complexity and munificence, and we examine the mediating role of changes in perceptions of industry value on these relationships.

Title: The Effect of Strategic Heterogeneity Amont Competitors on Firm Performance


  • Raquel Orcos, University of Zaragoza
  • Jaime Gomez, La Rioja University
  • Sergio Palomas, University of Zaragoza

Abstract: This paper contributes to competitor analysis literature by studying the influence of strategic heterogeneity among competitors on firm performance. We argue that diversity among rivals increases the number of strategic options that a firm can learn from, and reduces the effectiveness with which it is able to adjust its strategy to them. To develop our arguments be borrow from learning, contingency and population ecology perspectives. In addition, we explore how changes in the strategies implemented by rivals moderate the effect that the strategic heterogeneity among competitors has on performance. Consequently, our model simultaneously analyzes the effect of static heterogeneity (diversity among rivals at a point in time) and the moderating influence of dynamic heterogeneity (the strategic variety that comes from changes along time).

Title: The Interaction Effect of Competitive Advantage and Rivalry Restraint on Prices: Evidence from the Spanish Hotel Industry


  • Rosario Silva, IE Business School
  • Manuel Becerra, University of Queensland

Abstract: We study the interaction effect of two important mechanisms of rivalry restraint (horizontal differentiation and multimarket contact) on the relationship between quality and prices in the Spanish hotel industry. Based on our analysis of 1,822 hotels located in 80 Spanish touristic cities, the results confirm that both rivalry restraint mechanisms and greater quality (measured by the number of stars) have a positive effect on hotel prices, as it could be expected. More important, we show that these two positive effects are substitutes such that their joint presence reduces their separate main effects.

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