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Competitive pressure: competitive reactions at the group-level

Author

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  • Leon Zucchini
  • Stephan Böhmer-Horländer
  • Tobias Kretschmer

Abstract

We offer a new perspective on competitive dynamics research by analyzing firms’ reactions to groups of rivals, both at the industry and the strategic group level. We propose that firms observe a buildup of rival actions and perceive increasing ‘competitive pressure’ to respond, which results in greater action volume. Data on the German mobile telephony supports our argument: the volume of firms’ actions is influenced by a buildup of actions by multiple rivals, and firms react more strongly to rivals in their own strategic group.

Suggested Citation

  • Leon Zucchini & Stephan Böhmer-Horländer & Tobias Kretschmer, 2019. "Competitive pressure: competitive reactions at the group-level," Industry and Innovation, Taylor & Francis Journals, vol. 26(6), pages 643-666, July.
    • Handle: RePEc:taf:indinn:v:26:y:2019:i:6:p:643-666
    DOI: 10.1080/13662716.2018.1526666
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    Cited by:

    1. Kim, Jungho & Kollmann, Trevor & Palangkaraya, Alfons & Webster, Elizabeth, 2022. "Does local technological specialisation, diversity and dynamic competition enhance firm creation?," Research Policy, Elsevier, vol. 51(7).
    2. Travassos Rosário, Albérico & Carrizo Moreira, António & Macedo, Pedro, 2021. "Competitive dynamics of strategic groups in the Portuguese banking industry," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).

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