Session Details: Session 1073

Learning and Competitive Dynamics

Track E

Date: Monday, October 13, 2008

 

Time: 15:30 – 16:45

Paper

Room: Salon 17


Session Chair:
Anu Wadhwa, Imperial College London

Title: A Naturalist View of Niche-Based Competition

Authors

  • Ikenna Uzuegbunam, Ohio University

Abstract: This paper investigates the competitive exclusion principle as it applies to organizations in competitive space. Borrowing naturalist niche arguments, this study seeks to provide theoretical clarification for fundamental niche-based competition. I argue that firms that compete on the basis of niches are successful when they efficiently apply the relevant resources in the pursuit of their strategies. Central to this proposition is the notion that high performance firms are able to enact strategies that integrate the spatial (survival) and temporal (growth) dimensions of their niche in their pursuit of competitive advantage. I also provide empirical evidence from the U.S. semiconductor industry that is in line with the theoretical arguments of this paper.

Title: Capability Enhancement Through Performance Feedback Learning

Authors

  • Ari Dothan, Herzliya Interdisciplinary Center

Abstract: This study extends feedback learning theory to the context of organizational capabilities and offers a motivational explanation for capability evolution. It suggests that capability enhancement is triggered by learning from performance feedback. When actual performance falls below aspiration level a firm would enhance its capabilities. When performance exceeds aspiration level, however, the rate of improvement may differ due to inertial forces and managers’ attitude toward risk. Furthermore, environmental uncertainty concerning resources availability will intensify the effect of performance gap on capability enhancement whereas munificence of resources in the environment will attenuate this effect. In turn, enhanced capabilities enable the firm to bridge performance gaps and improve its performance, which is facilitated by the richness of internal resources and the relatedness between the firm’s businesses.

Title: Competitive Dynamics: Performance Implications of Action and Rivalry

Authors

  • Flora Ferlic, University of St Gallen
  • Georg von Krogh, ETH Zurich

Abstract: Research on competitive dynamics proposes that competitive action positively affects firm performance. Conversely, scholars investigating rivalry argue that high competitive action levels may negatively affect performance. Reconciling the two streams, we specify firm-specific boundaries for competitive action. Drawing on panel data from Fortune 500 companies, we observe a negative performance effect in respect of firms (1) whose competitive action is insufficient to defend their competitive position, and (2) whose competitive action exceeds their financial resource limits. Further, we find that specific types of organizational slack enable firms to curb the negative performance effects related to high competitive action levels.

Title: Hypercompetition at The Industry Lever: The Role Of Unpredictability

Authors

  • Hermann Ndofor, Indiana University - Indianapolis
  • Frances Fabian, University of Memphis
  • John Michel, University of Notre Dame

Abstract: A frequent refrain among strategy researchers and practitioners is the increasing dynamism and unpredictability of environmental change. Previous attempts to measure the unpredictability of industry environments utilized archival industry measures of sales or profitability. Utilizing advances in complexity theory, we examine the unpredictability of 14 key industry sectors over a 12 year period. Our results indicate that industry environments evolve in a medium dimensional chaotic process with relatively short prediction horizons comensurate with characterizations of hypercompetition. We however find no evidence that the level of unpredictability or complexity of these environments increased over the time period studied.

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