Does rivals ' innovation matter ? A competitive dynamics perspective on firms' product strategy

Chen, Tianxu; Tribbitt, Mark A.; Yang, Yi; Li, Xiaomei

doi:10.1016/j.jbusres.2017.02.016

Cited by 41 publications

(24 citation statements)

References 45 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Given the theoretical support among competitiveness and innovation capacity (Hausman and Johnston, 2014;Chen et al, 2017), our study provides empirical evidence of the examined relationships during the GFC period between competitiveness and innovation capacity within the banking system. We contend that risk (or a bank's stability levels) affects and determines the interlinkages between the business climate and a bank's innovation capacity.…”

Section: Introductionmentioning

confidence: 82%

“…Second, we contributed to the current debate on banking performance, advocating for the need to return to understanding the financial environment's competitiveness. To 4 date, regardless of the theoretical and empirical framework presented in extant business literature that explores the link between competition and innovation (Hausman and Johnston, 2014;Chen et al, 2017), empirical banking studies have focused on the relationships among efficiency, risk, single banking market, integration and financial openness (e.g., Altunbas et al, 2000;Altunbas et al, 2007;Casu and Girardone, 2006;Chortareas et al, 2016;Fiordelisi et al, 2011;Goddard et al, 2007;Lozano-Vivas et al, 2001;Mamatzakis et al, 2008;Maudos and de Guevara, 2007;Pasiouras et al, 2009;Schaeck and Cihák, 2014), but not on how the nexus of financial centres' competitiveness and the banking system's stability can contribute to innovation capacity as measured by technological change in the banking system. To achieve this, we used a global sample of banks and integrated the analysis as a measure of the business environment's competitiveness.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis

Degl’Innocenti

Grant

Šević

et al. 2018

International Review of Financial Analysis

View full text Add to dashboard Cite

This paper provides nuanced evidence on the effect of competitiveness and financial stability on banks' innovation-capacity (technological-change) levels during the Global Financial Crisis (GFC) in 2007-2008. We applied contemporary developments in nonparametric frontier analysis, employing a new index, the Global Financial Centres Index, to measure the business competitiveness of 45 financial centres. Our findings indicated a nonlinear and positive relationship between financial centres' competitiveness, banks' stability and innovation-capacity levels. This suggests that banks' ability to increase stability alongside financial centres' stability in a highly competitive environment acts as a protective measure against the GFC's negative effects.

show abstract

Section: Introductionmentioning

confidence: 82%

Section: Introductionmentioning

confidence: 99%

Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis

Degl’Innocenti

Grant

Šević

et al. 2018

International Review of Financial Analysis

View full text Add to dashboard Cite

show abstract

“…The AMC framework has also been further adapted to different managerial contexts. Among others, Meyer and Sinani (2009) use a meta‐analysis to extend the AMC framework to explain cross‐contextual variations in local firms' productivity upgrading in response to foreign entry; Livengood and Reger (2010) examine the effects of organizational identity on firms' competitive dynamics; Stadtler and Lin (2017) build an AMC framework to analyze a firm's drivers with regards to environmental alliances; and Chen et al (2017) use the AMC framework to study the effect of a rival's innovation on firms' product strategy. In this paper, we leverage the AMC framework to build a model of the antecedents of inventory agility given a context of demand shocks.…”

Section: Literature Reviewmentioning

confidence: 99%

Inventory agility upon demand shocks: Empirical evidence from the financial crisis

Udenio

Hoberg

Fransoo

2018

J of Ops Management

View full text Add to dashboard Cite

The objective of this paper is to identify antecedents of inventory agility (i.e., the capability to quickly adapt inventories to changes in demand) upon demand shocks based on the awareness‐motivation‐capability (AMC) framework and to explore the link between inventory agility and financial performance. We introduce an empirical measure of inventory agility based on the deviation of relative inventories (i.e., inventory days) from their forecasted values. We hypothesize that firms with higher awareness, motivation, and capabilities are associated with higher inventory agility in the presence of demand shocks. We define two empirical measures for each of the three dimensions of the AMC framework in the context of inventory agility: awareness (i.e., market orientation and technology orientation), motivation (i.e., gross margin and liquidity), and capabilities (i.e., inventory management capability and resource availability). In addition, we incorporate the constraining factor model (CFM) into the AMC framework, thus allowing for complementarity among the different measures. In this view, the influence of each of the measures on inventory agility varies according to which of the measures is the constraining factor for a given firm. The 2008 financial crisis may have tested firms' inventory agility more than any other crisis since the Great Depression, as an unprecedented collapse of demand coincided with a reduction in credit availability. Therefore, for our analysis, we use firm‐level empirical data from 1263 public U.S. manufacturing firms for the 2005–2011 period. We find that firms' motivation and capabilities are key factors associated with inventory agility. Through the CFM, we show that identifying the constraining factors leads to a more refined understanding of the moderating effects of the antecedents of inventory agility. In a separate analysis, we find that inventory agility is positively associated with a number of financial performance metrics during crisis periods. We distinguish between inventory underages and overages and find that, during the crisis, they are both associated with lower financial performance. Furthermore, we find evidence that higher underages (overages) magnify the effect of overages (underages). Among other managerial insights, our findings suggest that the use of inventory reductions as a quick way to increase liquidity must be gauged against their potential impact on other aspects of financial performance.

show abstract

“…[ 37 38 39 ] The study findings are also indicative of the innovative climate on the organizational innovation. [ 40 41 42 ] Of course, the difference between the results of the present study and the mentioned studies is that in our study, the climate governing the society outside the organization is mainly considered, which ultimately overshadows the performance of individuals and the organization, while most studies point to the intra-organizational space and work environment. Perhaps, the reason for this significant difference lies in the state-owned ownership of universities in Iran, which is influenced by the country's macro-policies and the climate governing the society.…”

Section: Discussionmentioning

confidence: 59%

Innovation capability in medical sciences universities: A qualitative study of Iran

Ghardashi

Yaghoubi

Bahadori

et al. 2019

J Edu Health Promot

View full text Add to dashboard Cite

Does rivals ' innovation matter ? A competitive dynamics perspective on firms' product strategy

Cited by 41 publications

References 45 publications

Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis

Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis

Inventory agility upon demand shocks: Empirical evidence from the financial crisis

Innovation capability in medical sciences universities: A qualitative study of Iran

Contact Info

Product

Resources

About