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

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

Journal of Business Research, 2017, vol. 76, issue C, 1-7

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.

Keywords: Competitive dynamics; Product strategy; Competitive signal; R&D intensity (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:76:y:2017:i:c:p:1-7

DOI: 10.1016/j.jbusres.2017.02.016

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