Matching response to competitors' moves under asymmetric market strength

Kai-Yu Hsieh and Hyun, Eunjung (E.J.)

Journal of Business Research, 2018, vol. 82, issue C, 202-212

Abstract: This paper investigates a firm's inclination to match a rival's strategic move under asymmetric market strength. Drawing from the awareness-motivation-capability framework, we theorize that a firm is more likely to match modestly weaker competitors to sustain its current lead and match modestly stronger competitors to eschew lagging further behind; conversely, a firm is less likely to match far weaker competitors due to its lack of attention and match far stronger competitors due to its inability to compete. Event history analysis of a set of IT companies' entry moves into various locations in China exhibits support for our hypotheses. Our findings suggest that a firm's matching response most often occurs under a moderate level of asymmetric market strength.

Keywords: Asymmetric market strength; Competitive strategy; Entry behavior; Matching response (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296317303569
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:82:y:2018:i:c:p:202-212

DOI: 10.1016/j.jbusres.2017.09.038

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().