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Product location choice and firm capabilities: evidence from the U.S. automobile industry

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  • Louis Thomas
  • Keith Weigelt

Abstract

We test theories of product differentiation and firm capabilities using data from the U.S. automobile industry. We find managers introduce new models close to their existing ones but far from rival models. We also find entrants and foreign manufacturers locate models closer to rival models. These results are consistent with both economic models of product differentiation and theories of firm capabilities Copyright © 2000 John Wiley & Sons, Ltd.

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  • Louis Thomas & Keith Weigelt, 2000. "Product location choice and firm capabilities: evidence from the U.S. automobile industry," Strategic Management Journal, Wiley Blackwell, vol. 21(9), pages 897-909, September.
    • Handle: RePEc:bla:stratm:v:21:y:2000:i:9:p:897-909
    DOI: 10.1002/1097-0266(200009)21:93.0.CO;2-X
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    Cited by:

    1. César García-Díaz & Gábor Péli & Arjen van Witteloostuijn, 2020. "The coevolution of the firm and the product attribute space," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-25, June.
    2. Roberto Fontana & Lionel Nesta, 2007. "Entry, Innovation and Exit from LAN Switch Industry," Working Papers hal-00973045, HAL.
    3. Felicia M. Fai & Eleanor J. Morgan, 2007. "Innovation, competition and regulatory change: Assessing interrelationships at the industry level," Management International Review, Springer, vol. 47(5), pages 767-785, September.
    4. Xianjin Du & Meng Li & Brian Wu, 2019. "Incumbent repositioning with decision biases," Strategic Management Journal, Wiley Blackwell, vol. 40(12), pages 1984-2010, December.
    5. Peter-J. Jost & Stefanie Schubert & Miriam Zschoche, 2015. "Incumbent positioning as a determinant of strategic response to entry," Small Business Economics, Springer, vol. 44(3), pages 577-596, March.
    6. Roma, Paolo & Panniello, Umberto & Lo Nigro, Giovanna, 2019. "Sharing economy and incumbents' pricing strategy: The impact of Airbnb on the hospitality industry," International Journal of Production Economics, Elsevier, vol. 214(C), pages 17-29.
    7. Jin, Tuofu & Eapen, Alex, 2022. "‘Delayed Forbearance’: Multipoint contact and mutual forbearance in inaugural and subsequent competitive actions," Journal of Business Research, Elsevier, vol. 149(C), pages 938-953.

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