Session 64

Diverse strategies: Diversification and the evolution of competition

Track E

Date: Monday, October 8, 2012

 

Time: 08:00 – 09:15

Paper

Room: Dressing Room 220


Session Chair:

  • Lyda Bigelow, University of Utah

Title: Entry Diversion and Submarket Industry Evolution: Dominance of Incumbents, Disruption, or Isolation?

Authors

  • Bilgehan Uzunca, Utrecht University
  • Bruno Cassiman, IESE Business School

Abstract: In this paper, we offer entry diversion as a new mechanism to explain dynamics that cannot be explained by the existing industry life cycle (ILC) theories where no shakeout occurs or where one incumbent does not become dominant after a shakeout (e.g., disruption by an entrant). Entry diversion happens when an entrant observes that expected future profits from a target submarket are decreased by the presence of a cost-efficient incumbent down to a level that the entrant chooses to enter another submarket. Contingent on where entrants are diverted submarkets might 1) reinforce incumbents’ dominance, 2) grow to be disruptive leading to change in industrial leadership, or 3) result in isolation. We formulate hypotheses based on the degree of technology and market overlap between two submarkets.

Title: Product Proliferation Strategies and Firm Performance in a Complex Product Space

Authors

  • Alicia Barroso, Carlos III University of Madrid
  • Marco Giarratana, IE Business School

Abstract: In the Spanish automobile market between 1990 and 2000, significant reductions in tariff and nontariff protections due to the EU integration increases the complexity of product space significantly, because of the penetration of new brands and models. Given these environmental conditions, the study results detail the conditions in which across-niche (intra-industry diversification) and within-niche (product versioning) product proliferation exerts a positive impact on firm performance, as well as how the key relationships change according to the complexity of the product space.

Title: Sources of Architectural Advantage: Platform Competition in Multi-sided Markets

Authors

  • Bilgehan Uzunca, Utrecht University
  • Kati Järvi, Hanken School of Economics
  • Heidi Tscherning, ESADE Business School

Abstract: Industry platforms are intermediaries between different groups of agents, and are central to the value creation and appropriation phenomena. We analyze how platform owners create and sustain architectural advantage in multi-sided markets. A platform owner is a dominating firm in a multi-sided market, which designs and decides the architecture of the platform. We posit that industry architectures provide an opportunity to capture the dynamic shift in value appropriation configurations. We conduct a literature review and identify sources of architectural advantage from various theoretical disciplines. In turn, we inform the industry architecture literature from these disciplines, especially from industrial economics. We believe that complementary fields of research can contribute to the industry architecture literature with insights into how to build and sustain architectural advantage.

Title: Where You Go, Who You Are, Who You Know: Experience, Reputation, Networks and Investment Decisions

Authors

  • Lyda Bigelow, University of Utah

Abstract: While previous studies examining the international venture capital industry have provided great insight into the framework conditions that provide the context for investment within different countries and regions across the globe, the literature currently provides few answers for how and why venture capital firms might engage in cross-border investment, or what mechanisms support their ability to do so. The purpose of this paper is to better understand why some venture capital firms internationalize, and others do not. Our study draws from the resource-based view and the capabilities literature to explain why some venture capital firms internationalize and others do not. We develop and test propositions using panel data from nearly 30 years of venture capital financing. Our results showcase the subtle interplay between venture capital firm experience, reputation, and network quality in the global market for the financing of high-growth entrepreneurial ventures.

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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