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The Role of Industry Concentration on Competitive Inventory-Management Behaviors: Evidence from U.S. Manufacturers

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Listed:
  • Rajat Mishra
  • Christopher J. McKenna

Abstract

This research study investigates the potential effect of industry concentration on the rivalrous moves and counter moves made between leader and challenger firms relative to inventory management decisions. Theoretically, “the perennial gale of creative destruction” proposed by Schumpeter (1934) enables an examination of the competitive dynamics between firms. Mimetic isomorphism (as embedded within institutional theory, per DiMaggio & Powell (1983)) and signaling theory (Porter, 1980) have likewise been applied here to the presumed actions and reactions of firms relative to management and operational decisions. For their part, Ferrier, Smith & Grimm (1999)—in leveraging earlier research from Young, Smith & Grimm (1996)—offer evidence to indicate that higher industry concentrations may result in fewer rivalrous moves. In such concentrated environments, the dynamism of competitive rivalries may be lessened, thereby suppressing otherwise potentially aggressive moves and counter moves relative to inventory and other operational decisions.

Suggested Citation

  • Rajat Mishra & Christopher J. McKenna, 2025. "The Role of Industry Concentration on Competitive Inventory-Management Behaviors: Evidence from U.S. Manufacturers," International Journal of Business and Management, Canadian Center of Science and Education, vol. 20(1), pages 1-12, February.
    • Handle: RePEc:ibn:ijbmjn:v:20:y:2025:i:1:p:12
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    References listed on IDEAS

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    2. Rajat Mishra & Randy Napier & Mahmut Yasar, 2019. "Do competitors respond to capacity changes? Evidence from U.S. manufacturers," Operations Management Research, Springer, vol. 12(3), pages 159-172, December.
    3. Brian Boyd, 1990. "Corporate linkages and organizational environment: A test of the resource dependence model," Strategic Management Journal, Wiley Blackwell, vol. 11(6), pages 419-430, October.
    4. Armstrong, J. Scott & Collopy, Fred, 1996. "Competitor Orientation: Effects of Objectives and Information on Managerial Decisions and Profitability," MPRA Paper 81676, University Library of Munich, Germany.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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