Session 59

Tempus fugit? Competitive strategy over time

Track E

Date: Tuesday, October 9, 2012

 

Time: 17:30 – 18:45

Paper

Room: North Hall


Session Chair:

  • Luiz Mesquita, Arizona State University

Title: First-mover IPO, Product Proliferation and Competitive Dynamics in China

Authors

  • Peter Gianiodis, Duquesne University
  • Wuyang Zhao, Fudan University
  • Chao Chen, Fudan University

Abstract: An industry’s initial IPO can garner the IPO-firm first-mover advantage in the capital markets, which can accelerate its R&D efforts and enhance existing product offerings. In this paper, we employed signaling theory and theories of market deterrence and preemption to examine the effect of an initial IPO on an industry’s competitive dynamics. Specifically, we posited that the initial IPO will negatively affect competitors’ product proliferation, and this relationship is modified by industry attributes, characteristics of industry competitors, and characteristics of the IPO-firm. To test our hypotheses, we employed data from the Chinese Industrial Enterprise Database (CIED), collected by China’s NBS. Findings reveal strong support for our theory and suggest that researchers should pay greater attention to the effect of IPO activity on industry competitive dynamics.

Title: Temporal Fit and Performance of Event-Specific Product Releases

Authors

  • Miles Zachary, West Virginia University
  • G Tyge Payne, Texas Tech University

Abstract: First mover advantage theory is a dominant perspective in strategic management research through which scholars examine market timing. While first-movers can have advantages, isolating mechanisms that deliver such advantages differ across contexts, and in some situations may not apply at all. Many industries have dominant external events or seasons that create narrow opportunities and/or restrictions on market timing. Using entrainment theory, we endeavor to extend the entry timing literature by analyzing product releases in contexts driven by external events. Specifically, we examine the movie production industry to find that temporal fit with an external event (i.e., holiday) is an important factor for product success. Moreover, early evidence suggests the relationship between temporal fit and performance is curvilinear such that an optimal time of release exists.

Title: The Evolution of Competition and First Mover Advantages in Economically Unstable Contexts

Authors

  • Javier Garcia-Sanchez, Austral University
  • Luiz Mesquita, Arizona State University
  • Roberto Vassolo, Austral University

Abstract: In light of current macroeconomic instability in global markets, we examine the evolution of competitive dynamics, and first-mover-advantages (FMA) when industries are subject to economic shocks. Albeit ordinary intuition would lead most to see economic shocks as harmful, we highlight conditions under which they enhance the relative value of isolating mechanisms such as technological leadership and financial resources, thereby affording pioneers and laggards significant and sustainable market share and profit advantages depending on the resource sets they possess. Based on formal modeling and multiple simulation runs, we offer testable theoretical propositions. We discuss implications for theory and practice.

Title: The Second Time Around: Sequential Quality Signalling and Product Re-Release in the Video Games Market

Authors

  • Joost Rietveld, Erasmus University Rotterdam
  • Joseph Lampel, University of Manchester
  • Cristiano Bellavitis, National Research University

Abstract: In markets for creative goods information asymmetries between buyers and sellers are often due to the difficulties of persuasively signalling to consumers how products optimally meet their quality preferences. To increase sales producers invest in as many proven quality signals prior and during product release. Extant research on this hypothesis deals primarily with the coordinated and simultaneous use of quality signalling. In this paper we look at the effectiveness of combining different quality signals when they are separated temporally. We test this using data on ‘platform endorsed’ re-release of video games between 2001 and 2011. We find that while the re-release reinforces revenues and unit sales, the increase is negatively moderated by the strength of the quality signals already embedded in the product.

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

Prague