Competitive Pressure: Competitive Dynamics as Reactions to Multiple Rivals
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.
|Date of creation:||Aug 2011|
|Contact details of provider:|| Postal: Ludwigstr. 28,80539 Munich, Germany|
Web page: http://www.bwl.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ming-Jer Chen & Ken G. Smith & Curtis M. Grimm, 1992.
"Action Characteristics as Predictors of Competitive Responses,"
INFORMS, vol. 38(3), pages 439-455, March.
- Chen, M.J. & Smith, K.G. & Grimm, C.M., 1991. "Action Charasteristics As Predictors of Competitive Responses," Papers fb-_91-12, Columbia - Graduate School of Business.
- 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.
- 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.
- 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.
- 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.
- Lukasz Grzybowski & Pedro Pereira, 2007. "The Complementarity between Calls and Messages in Mobile Telephony," Working Papers 27, Portuguese Competition Authority.