Session 60

The sustainability of competitive advantage

Track E

Date: Tuesday, October 9, 2012

 

Time: 14:15 – 15:30

Paper

Room: Meeting Hall IV (a)


Session Chair:

  • James Wade, Emory University

Title: Customer Turnover, Rivalry and Market Share Instability: An Analysis of Eight Product Markets, 2002-2010

Authors

  • Afonso Almeida Costa, Nova School of Business and Economics
  • Karel Cool, INSEAD

Abstract: The paper examines the impact of customer turnover at the market level, i.e. the effects of the degree of customers entering and leaving the market, on the intensity of rivalry. Hypotheses are derived about the drivers and effects of customer turnover and are tested on samples from the tire, smoking, beauty and personal care, and over-the-counter drug industries over the period 2002-2010. The degree of customer turnover in a market is linked to the age (or stage) specificity, the infrequency of need, and the durability of the products. Controlling for market structure variables, the paper finds that customer turnover as driven by durability reduces rivalry (as measured by market share instability), but that customer turnover as driven by age/stage specificity and infrequency of need significantly increases the instability of market shares.

Title: Stable Differences: International Diversity in Adaptation and Selection in the Worldwide Floppy Disk Drive Industry, 1970-1998

Authors

  • David McKendrick, Australian National University
  • Anand Swaminathan, Emory University
  • James Wade, Emory University

Abstract: Data on the worldwide floppy disk drive industry from 1970 to 1998 were used to study how adaptation and selection affect global competition over time. We argue that a combination of isomorphism and selection lead to stable differences in firm behavior across countries. National firms cohere around similar product strategies and stay with them rather than adapt to changing competitive circumstances. The choice of product strategies is strongly influenced by the national selection environment faced by early entrants: firms tend to imitate the practices and strategies of the most successful firms from their own nation rather than successful firms from elsewhere. Our findings suggest that organizations are likely to persist with national norms even in the face of global competition.

Title: The Interrelated Impact of Sustainability Performance and Transparency on Short and Long Term Financial Performance

Authors

  • Samuel Touboul, IPAG Business School

Abstract: This article studies the moderating impact of disclosure transparency on the link between sustainability and financial performance, both in the short and long run. It argues that on strategic factor markets sustainability performance only allows a better access to resources if matched with high transparency, but that low sustainability performers may still encounter high returns by limiting their disclosure. While literature still debates on whether a positive or a negative relationship exists between both constructs, this article solves the inconsistency and proves that depending on firms’ transparency, and time frame, sustainability performance may both have a positive and negative impact on financial performance. Using a unique dataset (2413 international firms over 8 years), we find support for our hypotheses and discuss their implications.

Title: When Value Sticks Around: Why Automobile OEMs Still Rule Their Sector

Authors

  • Michael G. Jacobides, London Business School
  • John Paul MacDuffie, University of Pennsylvania
  • Chungwon J Tae, London Business School

Abstract: In this paper, we compare the vast value migration that happened in computers (from OEMs to software and microprocessors) to stability in automobiles, where automobile manufacturers maintained their share of profits despite substantial outsourcing. We explain these large-scale data differences by delving into the qualitative dynamics of the automobile sector, as contrasted with PC’s. We offer four exploratory hypotheses that explain this difference in patterns: Difficulties in modularization; stability and the closed nature of the dominant design; OEM’s role in quality certification, meeting regulatory requirements, and bearing legal liability; and the industry’s continuity in terms of the nature of final customers and how products are distributed all contribute to lack of value migration in automobiles. Implications for research and practice are discussed.

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