Session Details: Session 1070

Performance and the Competitive Arena

Track E

Date: Tuesday, October 14, 2008


Time: 11:15 – 12:30


Room: Salon 18

Session Chair:
Markus Kreutzer, EBS University of Business and Law

Title: An Empirical Study of Technology–Based Competition Between Computer Game Genres


  • Ozgur Dedehayir, Leiden University
  • Saku Mäkinen, Tampere University of Technology

Abstract: This paper studies the evolution of competition in the computer games industry based on the level of technological pioneering regarding different product categories. We consider the pioneering choice of firms in response to known asymmetries arising in the technological environment, which are manifested in the presence of an underperforming technological component referred to as a reverse salient. Our findings show that shooter and adventure games are continuously the first product categories to advance in technological performance in response to states of reverse salience, leading us to conclude that first-mover advantages are likely to be associated with the development of these game genres in comparison to other game genres. We further discuss the results in light of the competition between the product categories.

Title: Competitive Countries or Competitive Firms: An Analysis of the Relationship Between Firm Performance and the Competitiveness of Nations


  • Rafael Goldszmidt, FGV-EBAPE
  • Luiz Brito, Getulio Vargas Foundation
  • Flavio Vasconcelos, Getulio Vargas Foundation

Abstract: This paper analyzes the relationship between firm performance and the competitiveness of nations. The theoretical framework of Industrial Organization suggests a negative relationship, while the Resource-Based View supports the hypothesis of a positive correlation. Data analyzed includes performance indicators from a sample of 8,886 firms in 235 industries and 34 countries, in a total of 32,590 observations from global COMPUSTAT and a national competitiveness index computed by IMD. Country effect was responsible for 3 percent of performance variance. A negative relationship was found between firm performance and national competitiveness. These findings indicate that the national environment’s characteristics, in isolation, have limited influence on firm performance, and that firms in less competitive countries tend to show superior performance.

Title: Exploration in Emerging Markets Driven by Technological Change: Who Benefits?


  • Linda Tegarden, Virginia Tech
  • Donald Hatfield, Virginia Tech

Abstract: Early entry into markets created by technological change offers first mover advantages. But, as the industry evolves, the early entrant will need to transition to the dominant design. To facilitate transition, firms need to explore designs to broaden the firms’ knowledge base in order to both identify and respond to technological change. We propose that the relationship between exploration and firm success depends upon past firm success in implementing technological changes. This past experience increases both the likelihood of exploration and ability to make the successful transition. We also propose that the relationship between exploration, transition to a dominant design and performance is moderated by these firm characteristics: that related diversified firms will have these dynamic capabilities. Start-up firms will be at a competitive disadvantage.

Title: Rank-Crossing, Randomness, and Sustained Competitive Advantage


  • Thomas Powell, University of Oxford
  • Ingo Reinhardt, Simon-Kucher & Partners

Abstract: Strategic management research is fundamentally concerned with sustained competitive advantage. This paper presents a “neutral” theory of competitive advantage and introduces a new ordinal performance measure known as rank-crossing. Rather than focusing on resource accumulation in dominant firms, we examine the statistical properties of whole performance distributions to infer the competitive processes capable of producing them. In an analysis of 40-year profit rate data, we find that sustained competitive advantage has eroded significantly since 1980, that dominant firms are the least likely to maintain their performance advantages, and that rank movements follow surprisingly stable statistical patterns that provide insights into the generative processes of competitive advantage.

All Sessions in Track E...

Sun: 10:00 – 11:30
Session 1501: Exploration Strategies: Current Research and Future Content and Methodological Challenges
Sun: 13:00 – 14:30
Session 1601: Organizational Capabilities and Competitive Advantage: Where Do We Go From Here?
Sun: 15:00 – 16:30
Session 1701: Using Research Centers to Foster ABC Collaboration
Mon: 11:15 – 12:30
Session 1067: The Upside of Financial Investments
Session 1072: Lessons from Industry Cases
Mon: 15:30 – 16:45
Session 1073: Learning and Competitive Dynamics
Session 1074: Configurations and Performance
Session 1076: The Knowledge-Based View in New Arenas
Mon: 17:00 – 18:15
Session 1060: Value Creation and Appropriation: Perspectives From the Resource-Based View, Property Rights and Incomplete Contracting
Session 1062: Mastering Alliance Capability
Session 1069: Leveraging and Repositioning Resources
Tue: 11:15 – 12:30
Session 1059: Networks and Social Capital
Session 1070: Performance and the Competitive Arena
Tue: 14:30 – 15:45
Session 1063: Topics on Competitive Dynamics
Session 1066: Managing and Environmental Stewardship
Session 1075: Strategic Decision Making
Wed: 10:00 – 11:15
Session 1065: Managing Stakeholder Networks and External Communication
Session 1071: Technology, Innovation and Competitive Advantage
Wed: 11:30 – 12:45
Session 1064: Exploring Dynamic Capabilities
Session 1068: Signals and Firm Reputation

Strategic Management Society

Cologne Conference