IDEAS home Printed from https://ideas.repec.org/p/aal/abbswp/12-03.html
   My bibliography  Save this paper

Competitive Pressure: Competitive Dynamics as Reactions to Multiple Rivals

Author

Listed:
  • Leon Zucchini
  • Tobias Kretschmer

Abstract

Competitive dynamics research has focused primarily on interactions between dyads of firms. Drawing on the awareness-motivation-capability framework and strategic group theory we extend this by proposing that firms? actions are influenced by perceived competitive pressure resulting from actions by several rivals. We predict that firms? action magnitude is influenced by the total number of rival actions accumulating in the market, and that this effect is moderated by strategic group membership. We test this using data on the German mobile telephony market and find them supported: the magnitude of firm?s actions is influenced by a buildup of actions by multiple rivals, and firms react more strongly to strategically similar rivals.

Suggested Citation

  • Leon Zucchini & Tobias Kretschmer, 2012. "Competitive Pressure: Competitive Dynamics as Reactions to Multiple Rivals," DRUID Working Papers 12-03, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  • Handle: RePEc:aal:abbswp:12-03
    as

    Download full text from publisher

    File URL: https://wp.druid.dk/wp/20120003.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ming-Jer Chen & Ken G. Smith & Curtis M. Grimm, 1992. "Action Characteristics as Predictors of Competitive Responses," Management Science, INFORMS, vol. 38(3), pages 439-455, March.
    2. Edward C. Norton & Hua Wang & Chunrong Ai, 2004. "Computing interaction effects and standard errors in logit and probit models," Stata Journal, StataCorp LP, vol. 4(2), pages 154-167, June.
    3. Grzybowski, Lukasz & Pereira, Pedro, 2008. "The complementarity between calls and messages in mobile telephony," Information Economics and Policy, Elsevier, vol. 20(3), pages 279-287, September.
    4. William P. Barnett & Olav Sorenson, 2002. "The Red Queen in organizational creation and development," Industrial and Corporate Change, Oxford University Press, vol. 11(2), pages 289-325.
    5. Walter J. Ferrier & Cormac Mac Fhionnlaoich & Ken G. Smith & Curtis M. Grimm, 2002. "The impact of performance distress on aggressive competitive behavior: a reconciliation of conflicting views," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(4-5), pages 301-316.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kapetaniou, Chrystalla & Rieple, Alison & Pilkington, Alan & Frandsen, Thomas & Pisano, Paola, 2018. "Building the layers of a new manufacturing taxonomy: How 3D printing is creating a new landscape of production eco-systems and competitive dynamics," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 22-35.
    2. Florian Baumann & Klaus Heine, 2013. "Innovation, Tort Law, and Competition," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(4), pages 703-719, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claudio Giachetti & Giovanni Battista Dagnino, 2014. "Detecting the relationship between competitive intensity and firm product line length: Evidence from the worldwide mobile phone industry," Strategic Management Journal, Wiley Blackwell, vol. 35(9), pages 1398-1409, September.
    2. Yang, Wei & Meyer, Klaus E., 2019. "How does ownership influence business growth? A competitive dynamics perspective," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    3. He, Jinyu & Mahoney, Joseph T., 2006. "Firm Capability, Corporate Governance, and Firm Competitive Behavior: A Multi-theoretic Framework," Working Papers 06-0103, University of Illinois at Urbana-Champaign, College of Business.
    4. Trushin, Eshref & Ugur, Mehmet, 2018. "Ecosystem complexity, firm learning and survival: UK evidence on intra-industry age and size diversity as exit hazards," Greenwich Papers in Political Economy 19095, University of Greenwich, Greenwich Political Economy Research Centre.
    5. Lei Chi & T. Ravichandran & Goce Andrevski, 2010. "Information Technology, Network Structure, and Competitive Action," Information Systems Research, INFORMS, vol. 21(3), pages 543-570, September.
    6. Carla D. Jones & Phillip M. Jolly & Connor J. Lubojacky & Geoffrey P. Martin & Luis R. Gomez-Mejia, 2019. "Behavioral agency and corporate entrepreneurship: CEO equity incentives & competitive behavior," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 1017-1039, September.
    7. Jarle Aarstad & Olav Andreas Kvitastein & Stig-Erik Jakobsen, 2019. "What Drives Enterprise Product Innovation? Assessing How Regional, National, And International Inter-Firm Collaboration Complement Or Substitute For R&D Investments," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-25, June.
    8. Mark Bergen & Margaret A. Peteraf, 2002. "Competitor identification and competitor analysis: a broad-based managerial approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(4-5), pages 157-169.
    9. Jen Baggs & Eugene Beaulieu & Loretta Fung, 2014. "Persistent Effects Of Transitory Exchange Rate Shocks On Firm Dynamics," Contemporary Economic Policy, Western Economic Association International, vol. 32(2), pages 334-350, April.
    10. Wang, Liang & Tan, Justin & Li, Wan, 2018. "The impacts of spatial positioning on regional new venture creation and firm mortality over the industry life cycle," Journal of Business Research, Elsevier, vol. 86(C), pages 41-52.
    11. Fathi Fakhfakh & Virginie Pérotin & Andrew Robinson, 2011. "Workplace Change and Productivity: Does Employee Voice Make a Difference?," Chapters, in: Susan Hayter (ed.), The Role of Collective Bargaining in the Global Economy, chapter 5, Edward Elgar Publishing.
    12. Myint Moe Chit, 2018. "Political openness and the growth of small and medium enterprises: empirical evidence from transition economies," Empirical Economics, Springer, vol. 55(2), pages 781-804, September.
    13. Bastian Ravesteijn & Hans van Kippersluis & Mauricio Avendano & Pekka Martikainen & Hannu Vessari & Eddy van Doorslaer, 2017. "The Impact of Later Tracking on Mortality by Parental Income in Finland," Tinbergen Institute Discussion Papers 17-030/V, Tinbergen Institute.
    14. Melanie Lefevre, 2011. "Willingness-to-pay for Local Milk-based Dairy Product in Senegal," CREPP Working Papers 1108, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
    15. Canan Mutlu & Wu Zhan & Mike Peng & Zhiang Lin, 2015. "Competing in (and out of) transition economies," Asia Pacific Journal of Management, Springer, vol. 32(3), pages 571-596, September.
    16. Steffen Hurka, 2013. "Changing the output: The logic of amendment success in the European Parliament’s ENVI Committee," European Union Politics, , vol. 14(2), pages 273-296, June.
    17. Ek, Claes, 2017. "Some causes are more equal than others? The effect of similarity on substitution in charitable giving," Journal of Economic Behavior & Organization, Elsevier, vol. 136(C), pages 45-62.
    18. Faouzi Bensebaa, 2003. "La dynamique concurrentielle:défis analytiques et méthodologiques," Revue Finance Contrôle Stratégie, revues.org, vol. 6(1), pages 5-37, March.
    19. Sakaue, Katsuki, 2018. "Informal fee charge and school choice under a free primary education policy: Panel data evidence from rural Uganda," International Journal of Educational Development, Elsevier, vol. 62(C), pages 112-127.
    20. Lim, Lewis K.S., 2013. "Mapping competitive prediction capability: Construct conceptualization and performance payoffs," Journal of Business Research, Elsevier, vol. 66(9), pages 1576-1586.

    More about this item

    Keywords

    Competitive rivalry ; competitive dynamics ; strategic groups ; mobile;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aal:abbswp:12-03. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://www.druid.dk/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Keld Laursen (email available below). General contact details of provider: https://www.druid.dk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.