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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… Click to show full abstract
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.
Journal Title: Industry and Innovation
Year Published: 2018
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