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Linking hypercompetition and strategic group theories: strategic maneuvering in the US insurance industry

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Listed:
  • Avi Fiegenbaum

    (Technion-Israeli Institute of Technology, Faculty of Engineering and Management, Technion City, Haifa, Israel)

  • Howard Thomas

    (Warwick Business School, Coventry CV4 7AL, UK)

  • Ming-Je Tang

    (Department of International Business, National Taiwan University, Taipei, Taiwan, ROC)

Abstract

Focusing on the dynamics of strategic maneuvering, this paper draws parallels between the accumulated perspectives of strategic group theory and ideas drawn from evolutionary economics and from a recent strategy-oriented book on hypercompetition (D'Aveni RA. 1994. Hypercompetition: Managing the Dynamics of Strategic Maneuvering. The Free Press: New York). Using insurance industry data, the paper first uses the methodological framework of strategic groups to define competitive positioning and the identity of close competitors. It then develops a Markovian model to analyse two important aspects of strategic maneuvering over time: the level of firm movement, and the determination of optimal maneuvering paths and their related long-term performance. The results provide insights into industry competitive dynamics and rivalry. First, there is clear evidence of strategic maneuvering over the entire time period studied and a higher level of maneuvering in the long run. Second, for some competitive scenarios, there are optimal maneuvering trajectories that optimize a firm's long-term economic performance. Copyright © 2001 John Wiley & Sons, Ltd.

Suggested Citation

  • Avi Fiegenbaum & Howard Thomas & Ming-Je Tang, 2001. "Linking hypercompetition and strategic group theories: strategic maneuvering in the US insurance industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 22(4-5), pages 265-279.
    • Handle: RePEc:wly:mgtdec:v:22:y:2001:i:4-5:p:265-279
    DOI: 10.1002/mde.1015
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    References listed on IDEAS

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    1. Dan Schendel & G. Richard Patton, 1978. "A Simultaneous Equation Model of Corporate Strategy," Management Science, INFORMS, vol. 24(15), pages 1611-1621, November.
    2. Newman, Howard H, 1978. "Strategic Groups and the Structure-Performance Relationship," The Review of Economics and Statistics, MIT Press, vol. 60(3), pages 417-427, August.
    3. Karel Cool & Dan Schendel, 1988. "Performance differences among strategic group members," Strategic Management Journal, Wiley Blackwell, vol. 9(3), pages 207-223, May.
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    Cited by:

    1. Justo de Jorge Moreno & Leopoldo Laborda Castillo & Fernando Merino de Lucas, 2011. "La empresa industrial de América Latina: Análisis de la eficiencia mediante grupos estratégicos," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 165-192, January-D.
    2. Peter Ebbes & Rajdeep Grewal & Wayne DeSarbo, 2010. "Modeling strategic group dynamics: A hidden Markov approach," Quantitative Marketing and Economics (QME), Springer, vol. 8(2), pages 241-274, June.
    3. Antonio Gozzi & Roberta Scarsi & Riccardo Spinelli, 2015. "Un?analisi dei raggruppamenti strategici nella fornitura di servizi logistici," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2015(2), pages 231-257.
    4. Robson, Julie & van der Heijden, Hans, 2016. "Senior management perceptions of aspirational groups: A study of the UK general insurance market," Journal of Business Research, Elsevier, vol. 69(8), pages 2731-2738.

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