Competitive pressure: competitive reactions at the group-level |
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| Authors: | Leon Zucchini Stephan Böhmer-Horländer |
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| Affiliation: | Institute for Strategy, Technology and Organization, Munich School of Management, Ludwig-Maximilians-Universit?t München, Munich, Germany |
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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 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. |
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| Keywords: | Competitive dynamics managerial cognition mobile telecommunications strategic groups |
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