Time delays, competitive interdependence, and firm performance

Luoma, Jukka; Ruutu, Sampsa; King, Adelaide Wilcox; Tikkanen, Henrikki

doi:10.1002/smj.2512

Cited by 35 publications

(30 citation statements)

References 70 publications

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“…2016), or the benefits from the learning effects associated with time delays (Hopkins 2003; Luoma et al . 2017), or the firm's aggressiveness (Ferrier 2001). Conversely, Hsieh et al .…”

Section: Management Of Temporary Advantagementioning

confidence: 99%

Temporary Competitive Advantage: A State‐of‐the‐Art Literature Review and Research Directions

Dagnino

Picone

Ferrigno

2020

Int J Management Reviews

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In many industries, the traditional sources of competitive advantage tend to evaporate fairly rapidly. Therefore, managers need to continually rethink and reformulate their firm strategies. Likewise, scholars have felt compelled to shift the traditional centre of attention from competitive advantage that is sustainable over time to a focus on how firms compete by achieving a series of temporary advantages. However, the proliferation of research on temporary competitive advantage, far from building a solid body of literature, has produced a series of fragmented studies. This condition calls for detecting the state of knowledge in this realm of strategic inquiry. By leveraging the present status of the literature on temporary competitive advantage, we offer a conceptual map of the current inquiry of the antecedents, management, and consequences of temporary competitive advantage. Then, we identify the key implications for strategy theory and discuss the major challenges for cultivating fertile territories in this intriguing area of research.

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“…2016), or the benefits from the learning effects associated with time delays (Hopkins 2003; Luoma et al . 2017), or the firm's aggressiveness (Ferrier 2001). Conversely, Hsieh et al .…”

Section: Management Of Temporary Advantagementioning

confidence: 99%

Temporary Competitive Advantage: A State‐of‐the‐Art Literature Review and Research Directions

Dagnino

Picone

Ferrigno

2020

Int J Management Reviews

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“…Our research takes a behavioral view (see, e.g., Powell, Lovallo, & Fox, 2011) on competition. Behavioral studies of competition examine how managers' cognitive processes are impacted by competitive dynamics in the market, and how the outcomes of these cognitive processes, in turn, shape managers' decisions about competitive actions (see, e.g., Kilduff, Elfenbein, & Staw, 2010;Luoma et al, 2017). We focus on how managers form beliefs about the likely behaviors of their competitors-a process sometimes called competitive reasoning (e.g., Montgomery, Moore, & Urbany, 2005)-and how those beliefs influence subsequent competitive actions.…”

Section: A Behavioral View Of Competitive Reasoningmentioning

confidence: 99%

Big splash, no waves? Cognitive mechanisms driving incumbent firms’ responses to low‐price market entry strategies

Luoma

Falk

Totzek

et al. 2018

Strategic Management Journal

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Research Summary: Low‐price market entries, aiming for rapid sales growth, tend to prompt strong competitive reactions. This research explores whether and how firms using low‐price entry strategies can mitigate retaliatory incumbent reactions. An experiment with 656 managers shows that entrants can attenuate the strength of incumbents’ responses by fostering perceptions of high aggressiveness or low commitment. Entrants may be able to accomplish this by adjusting their entry strategy to embed (subtle) cues of aggressiveness and (lack of) commitment. A replication experiment with university students reinforces our overall theoretical argument. However, the results also indicate that the interpretation of cues embedded in the entry strategy may be affected by the experience of incumbent firm managers. Overall, these results clarify the cognitive foundations of competitive responses to market entry. Managerial Summary: What drives incumbents to respond strongly to market entries, and what can the entrant, if anything, do to mitigate those responses? This research offers empirical evidence and theoretical insights for managers faced with these questions by shedding light on the thinking processes preceding competitive responses. The study shows that while managers are motivated to respond strongly to market entries that appear to be highly consequential to their business, these responses may be mitigated if the entrant manages to foster perceptions of high aggressiveness or low commitment to the market. Managers form these perceptions in part on the basis of the entrant’s behavior, creating an opportunity for entrants to adjust their entry strategies in a manner that demotivates strong competitive responses.

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“…The second advantage of the concept of iterative lagged asymmetric responses is that it helps reveal why time lags are a source of uncertainty just as significant as the dissimilarity or asymmetry of the competitor's response (Chen and MacMillan, 1992; Luoma et al., 2017; San Cristóba, 2014; Schwartz, 1975). Several types of time lags are undergirding a competitor's elaboration and execution of a given response.…”

Section: Time Lags In Competitive Strategymentioning

confidence: 99%

Iterative lagged asymmetric responses in strategic management and long-range planning

Simandan

2018

Time & Society

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Actors in competitive environments are bound to decide and act under conditions of uncertainty because they rarely have accurate foreknowledge of how their opponents will respond and when they will respond. Just as a competitor makes a move to improve their standing on a given variable relative to a target competitor, she should expect the latter to counteract with an iterative lagged asymmetric response, that is, with a sequence of countermoves ( iteration) that is very different in kind from its trigger ( asymmetry) and that will be launched at some unknown point in the future ( time lag). The paper explicates the broad relevance of the newly proposed concept of “iterative lagged asymmetric responses” to the social study of temporality and to fields as diverse as intelligence and counterintelligence studies, strategic management, futures studies, military theory, and long-range planning. By bringing out in the foreground and substantiating the observation that competitive environments place a strategic premium on surprise, the concept of iterative lagged asymmetric responses makes a contribution to the never-ending and many-pronged debate about the extent to which the future can be predicted.

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Time delays, competitive interdependence, and firm performance

Cited by 35 publications

References 70 publications

Temporary Competitive Advantage: A State‐of‐the‐Art Literature Review and Research Directions

Temporary Competitive Advantage: A State‐of‐the‐Art Literature Review and Research Directions

Big splash, no waves? Cognitive mechanisms driving incumbent firms’ responses to low‐price market entry strategies

Iterative lagged asymmetric responses in strategic management and long-range planning

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