Does Rivals' Innovation Matter? A Competitive Dynamics Perspective on Firms' Product Strategy

Published In

Journal of Business Research

Document Type

Citation

Publication Date

7-2017

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.

Description

(C) 2017 Elsevier Inc. All rights reserved.

DOI

10.1016/j.jbusres.2017.02.016

Persistent Identifier

http://archives.pdx.edu/ds/psu/20543

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