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Do or die: competitive effects and Red Queen dynamics in the product survival race

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  • M. Berk Talay
  • Janell D. Townsend

Abstract

This study explores the reciprocal relationship between the nature and duration of competition, and innovation outcomes. We propose that the perpetually driven, reciprocal sequence of competitive action and reaction known as the "Red Queen" in evolutionary biology is a cardinal force behind the success of innovations. We test our hypotheses applying a comprehensive data set of all automobile manufacturers known to compete in the US automobile market at any time between 1946 and 2008. Using data composed of 8203 model–year pairs, 1071 models from 148 different brands, we find that recent competitive experiences of models, rather than those in the distant past, make them more viable competitors. Additionally, superior reputation and market share are found to effectively shield models from the pernicious effects of Red Queen competition.

Suggested Citation

  • M. Berk Talay & Janell D. Townsend, 2015. "Do or die: competitive effects and Red Queen dynamics in the product survival race," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(3), pages 721-738.
  • Handle: RePEc:oup:indcch:v:24:y:2015:i:3:p:721-738.
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    File URL: http://hdl.handle.net/10.1093/icc/dtv017
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    Cited by:

    1. Kirca, Ahmet H. & Randhawa, Praneet & Talay, M. Berk & Akdeniz, M. Billur, 2020. "The interactive effects of product and brand portfolio strategies on brand performance: Longitudinal evidence from the U.S. automotive industry," International Journal of Research in Marketing, Elsevier, vol. 37(2), pages 421-439.
    2. Junwei Ma & Jianhua Wang & Philip Szmedra, 2019. "Sustainable Competitive Position of Mobile Communication Companies: Comprehensive Perspectives of Insiders and Outsiders," Sustainability, MDPI, vol. 11(7), pages 1-15, April.
    3. Chen, Yinghui, 2021. "Does political turnover stifle or stimulate corporate innovation?," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 1126-1145.

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