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The predictive validity of the Karnani and Wernerfelt model of multipoint competition

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  • Faye I. Smith
  • Rick L. Wilson

Abstract

This study is the first to examine the predictive validity of the Karnani and Wernerfelt theoretical model. We developed measures for four variables, and explored whether they successfully operationalized the dimensions in the theoretical model. The model proposed four response strategies, and six were observed in the data. Incumbent firms most frequently did not respond at all to another firm's entry, even though a counterattack response was predicted by the model. Since the independent variables did not predict responses as proposed by the model, exploratory analyses identified “best” predictors of responses.

Suggested Citation

  • Faye I. Smith & Rick L. Wilson, 1995. "The predictive validity of the Karnani and Wernerfelt model of multipoint competition," Strategic Management Journal, Wiley Blackwell, vol. 16(2), pages 143-160.
    • Handle: RePEc:bla:stratm:v:16:y:1995:i:2:p:143-160
    DOI: 10.1002/smj.4250160205
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    Cited by:

    1. Ma, Hao, 1998. "Mutual forbearance in international business," Journal of International Management, Elsevier, vol. 4(2), pages 129-147, October.
    2. Ma, Hao, 1999. "Determinants of strategic options in multinational market competition," Journal of International Management, Elsevier, vol. 5(2), pages 93-113.
    3. Sarangi, Subrat & Chakraborty, Abhishek & Triantis, Konstantinos P., 2021. "Multimarket competition effects on product line decisions – A multi-objective decision model in fast moving consumer goods industry," Journal of Business Research, Elsevier, vol. 133(C), pages 388-398.
    4. Minghong Shi & Chao Zhang & Chun-Liang Chen, 2023. "The Evolution of Corporate Innovation in the O2O Model—Case Studies in the Chinese Jewelry Retail Sector," Sustainability, MDPI, vol. 15(17), pages 1-39, August.
    5. Abdelmajid Amine & Faouzi Bensebaa, 2005. "Intensité concurrentielle entre lignes de produits rivales:un éclairage par la théorie de la concurrence multimarchés," Revue Finance Contrôle Stratégie, revues.org, vol. 8(2), pages 5-37, June.

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