|Zucchini, Leon and Kretschmer, Tobias (2011): Competitive Pressure: Competitive Dynamics as Reactions to Multiple Rivals. Discussion Papers in Business Administration 2011-3|
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.
|Item Type:||Paper (Discussion Paper)|
|Keywords:||Competitive rivalry, competitive dynamics, strategic groups, mobile telecommunications|
|Collections:||Munich School of Management|
Munich School of Management > Discussion Papers
Munich School of Management > Discussion Papers > Communication Economics
|Subjects:||300 Social sciences > 300 Social sciences, sociology and anthropology|
300 Social sciences > 330 Economics
|JEL Classification:||D83, M10, D22, L11|
|Deposited On:||29. Aug 2011 09:38|
|Last Modified:||22. May 2012 10:30|
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