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Aligning with Competitors when Adopting New Product Technologies

In: Competitive Dynamics in the Mobile Phone Industry

Author

Listed:
  • Claudio Giachetti

    (Ca’ Foscari University of Venice)

Abstract

Common to many strategic management theories is the assumption that firms dynamically adjust their behaviors to a predetermined target, a process that some authors have called “strategic adjustment”. Recently, in the strategy field, the “strategic reference point (SRP) theory” has introduced the idea of strategic adjustment toward more than one reference target. Borrowing from various insights offered by the SRP theory, this chapter analyzes how both the leader and the collective behavior of industry rivals influence the firm when adopting new product technologies. Using data on product portfolio strategies of mobile phone vendors in the UK market, results show that the benchmarks toward which firms adjust their strategic actions vary, depending on whether the product technology represents a radical or incremental product innovation.

Suggested Citation

  • Claudio Giachetti, 2013. "Aligning with Competitors when Adopting New Product Technologies," Palgrave Macmillan Books, in: Competitive Dynamics in the Mobile Phone Industry, chapter 5, pages 115-139, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-37412-7_6
    DOI: 10.1057/9781137374127_6
    as

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