Niche changes and population strategies: foreign competition revisited

Kjell Grönhaug and Vijaya Narapareddy

Scandinavian Journal of Management, 1989, vol. 5, issue 1, 49-61

Abstract: This article explores the impact of foreign competition on domestic industry performance. The population ecology perspective borrowed from biology is used for this purpose. Basic concepts are introduced and modified to capture essential market characteristics. The market niche resource is conceived in terms of exchange potential. A distinction is made between two sets of populations inhabiting the same niche, i.e. serving populations and client populations, both necessary if exchanges are to take place. The impact of potential changes in niche size and niche shape is discussed and examined in an exploratory study. The findings indicate that decreasing niche size may be more important than foreign competition in explaining domestic industry decline. The ability to adapt to foreign competition and to compensate by entering outside niches was found to differ between the industries examined.

Keywords: Population; ecology; foreign; competition; industry; performance (search for similar items in EconPapers)
Date: 1989
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