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

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

Abstract

We build on the awareness-motivation-capability (AMC) framework of competitive dynamics research to examine how a signal of a rival's innovation, in the form of research and development (R&D) intensity, may influence a focal firm's product actions. We argue that a rival's R&D intensity increases a focal firm's awareness of a competitive threat and thus its motivation to react by increasing its product actions. However, this competitive impact is conditional on the focal firm's size and performance relative to the rival, as well as the strategic homogeneity of the two. We use the AMC framework to analyze such moderating effects.

Suggested Citation

  • Chen, Tianxu & Tribbitt, Mark A. & Yang, Yi & Li, Xiaomei, 2017. "Does rivals' innovation matter? A competitive dynamics perspective on firms' product strategy," Journal of Business Research, Elsevier, vol. 76(C), pages 1-7.
    • Handle: RePEc:eee:jbrese:v:76:y:2017:i:c:p:1-7
    DOI: 10.1016/j.jbusres.2017.02.016
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    10. Degl'Innocenti, Marta & Grant, Kevin & Šević, Aleksandar & Tzeremes, Nickolaos G., 2018. "Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis," International Review of Financial Analysis, Elsevier, vol. 59(C), pages 35-46.
    11. Travassos Rosário, Albérico & Carrizo Moreira, António & Macedo, Pedro, 2021. "Competitive dynamics of strategic groups in the Portuguese banking industry," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
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