Search results

1 – 10 of over 5000
Article
Publication date: 6 August 2024

Vincent Y.L. Chang

According to the market competition theory, a firm’s decision-making is influenced by the behaviors or strategies of its competitors. The repercussions of competition include…

Abstract

Purpose

According to the market competition theory, a firm’s decision-making is influenced by the behaviors or strategies of its competitors. The repercussions of competition include market-stealing and spillover effects. Relatively few studies in the reinsurance literature discuss the effect of competitors on an insurer’s decision-making. This study aims to fill a gap in the reinsurance literature by comparing insurers' reinsurance demand to their competitors' reinsurance purchases.

Design/methodology/approach

This study uses unbalanced panel data for the US property-liability insurance industry from 2006 to 2017 to determine the impact of competitors' reinsurance purchases on insurers' reinsurance demand. This study employs the Mixed Effect Model and the Quantile Regression to test the proposed hypotheses.

Findings

The evidence suggests that the affiliated reinsurance purchases of competitors have a positive and substantial effect on the affiliated reinsurance demand of insurers, crediting mimicking the reinsurance strategy. Interestingly, the market-stealing effect is supported while the non-affiliated reinsurance metric is used. Remarkably, given insurers with low non-affiliated reinsurance purchases, the finding sustains the mimicking reinsurance strategy. Nevertheless, the market-stealing effect remains a concern for insurers with a high non-affiliated reinsurance purchase.

Originality/value

The new findings concerning competitor effects analysis fill a void in the reinsurance literature. Risk diversification, capital substitution, and real services demand may play a crucial role in determining the market-stealing effect, leading to a decrease in market share. Insurers can mitigate the market-stealing effect of competitors by accessing expertise and capital substitution through non-affiliated reinsurance purchases.

Details

Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 9 April 2024

Jaeyoung Park, Woosik Shin, Beomsoo Kim and Miyea Kim

This study aims to explore the spillover effects of data breaches from a consumer perspective in the e-commerce context. Specifically, we investigate how an online retailer’s data…

Abstract

Purpose

This study aims to explore the spillover effects of data breaches from a consumer perspective in the e-commerce context. Specifically, we investigate how an online retailer’s data breach affects consumers’ privacy risk perceptions of competing firms, and further how it affects shopping intention for the competitors. We also examine how the privacy risk contagion effect varies depending on the characteristics of competitors and their competitive responses.

Design/methodology/approach

We conducted two scenario-based experiments with surveys. To assess the spillover effects and the moderating effects, we employed an analysis of covariance. We also performed bootstrapping-based mediation analyses using the PROCESS macro.

Findings

We find evidence for the privacy risk contagion effect and demonstrate that it negatively influences consumers’ shopping intention for a competing firm. We also find that a competitor’s cybersecurity message is effective in avoiding the privacy risk contagion effect and the competitor even benefits from it.

Originality/value

While previous studies have examined the impacts of data breaches on customer perceptions of the breached firm, our study focuses on customer perceptions of the non-breached firms. To the best of the authors’ knowledge, this study is one of the first to provide empirical evidence for the negative spillover effects of a data breach from a consumer perspective. More importantly, this study empirically demonstrates that the non-breached competitor’s competitive response is effective in preventing unintended negative spillover in the context of the data breach.

Details

Internet Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 21 February 2024

Sam Yul Cho and Yohan Choi

Research has focused primarily on the antecedents that influence the risk taking of CEOs themselves. This study examines how an important event experienced by a CEO at a direct…

Abstract

Purpose

Research has focused primarily on the antecedents that influence the risk taking of CEOs themselves. This study examines how an important event experienced by a CEO at a direct rival firm influences a CEO's risk-taking. It also examines how prior firm performance relative to aspirations moderates the relationship.

Design/methodology/approach

In order to test the hypothesis, the authors perform an a difference-in-differences methodology.

Findings

Using a difference-in-differences methodology, we find that when a CEO wins a prestigious CEO award, competitor CEOs increase their firm risk-taking in the post-award period. The proclivity becomes stronger when their prior firm performance relative to aspirations is better. These findings suggest that a CEO winning a prominent CEO award influences competitor CEOs' risk-taking.

Originality/value

This study contributes to the literature on managerial risk-taking by highlighting that a star CEO winning a prominent award may serve as a striving aspiration and induce competitor CEOs to take risks, and that two different types of aspirations – striving and competitive aspirations – interact to influence the competitor CEOs' risk-taking.

Details

Management Decision, vol. 62 no. 3
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 4 July 2023

Korhan Arun and Saniye Yildirim Ozmutlu

Customer orientation (CO) means meeting customers’ needs better than competitors. Competitor orientation means using and acting upon the knowledge of competitors. Thus, the main…

Abstract

Purpose

Customer orientation (CO) means meeting customers’ needs better than competitors. Competitor orientation means using and acting upon the knowledge of competitors. Thus, the main aim of this study is to analyze the effects of environmental competitiveness on export performance by examining the moderating roles of these variables.

Design/methodology/approach

Based on data from 5,000 firms from a survey run in 2021 in Turkey facilitated by the Chamber of Commerce, the authors tested their hypotheses using partial least squares structural equation modeling and correlation analysis.

Findings

The results show that competitor orientation positively affects the relationship between a competitive environment and export performance. However, the authors do not find evidence of a significant effect on CO.

Practical implications

Service sector managers should sacrifice customers to gain export market share in favor of superiority with competitors.

Originality/value

Prior research has yet to emphasize the importance of competition intensity in export performance for service-logistics firms. However, the environmental competitiveness–performance relationship is better explained with the help of these test results and the two additional moderators suggested in this work. Moreover, the export performance indicators were gathered from an independent source.

Details

Journal of Business & Industrial Marketing, vol. 39 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 28 August 2023

Shiv Chaudhry, Dave Crick and James M. Crick

This study investigates how a competitor orientation (knowledge of and acting on competitors' strengths and weaknesses) facilitates coopetition activities (collaboration with…

Abstract

Purpose

This study investigates how a competitor orientation (knowledge of and acting on competitors' strengths and weaknesses) facilitates coopetition activities (collaboration with competitors), within networks of competing micro-sized, independent, family restaurants, owned by entrepreneurs from ethnic minority backgrounds.

Design/methodology/approach

An instrumental case study features data collected from interviews with 30 owners (as key informants) of micro-sized, independent, family-owned restaurants, in two urban clusters within the Midlands (UK). Specifically, the context involves restaurants offering South Asian cuisine and where the owner originated from the Indian sub-continent (Bangladesh, India or Pakistan). Secondary data were collected wherever possible. These two clusters (not named for ethics reasons) are highly populated by members of these respective ethnic communities; also, they contain a relatively large number of restaurants offering South Asian cuisine.

Findings

A competitor orientation facilitated strong coopetition-oriented partnerships comprised of extended family and intra-community members that helped enhance individual firms' performance, maintained family employment and sustained their cluster. It also helped owners develop subtle counter strategies where weak ties existed, such as via inter-community networks. For example, strategies attracted customers that were not loyal to a particular restaurant, or indeed, sub-ethnic cuisine (within Bangladesh, India or Pakistan, like the Punjab region). Subtle as opposed to outright counter strategies minimised retaliation, since restaurant owners wanted to avoid price wars, or spreading misinformation where the reputation of a cluster may suffer alongside the likely survival of individual businesses within that regional cluster.

Originality/value

Mixed evidence exists in earlier studies regarding the competitive rivalry in certain sectors where ethnic minority ownership is prominent; not least, restaurants located in regional clusters. However, this investigation considers the notion – what if some of these earlier studies are wrong? More specifically, does certain prior research under-represent the extent that rival entrepreneurs of an ethnic minority origin collaborate rather than compete for mutually beneficial purposes? New evidence emerges regarding ways in which a competitor orientation can influence the performance-enhancing nature of coopetition activities among business owners originating from both intra and inter-ethnic communities.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 29 no. 9/10
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 15 August 2024

Rajiv Kashyap, Raza Mir and Stephen C. Betts

Strategy scholars have argued that microlevel behavioral decisions by firms play a disproportionate role in making a firm nimble. Central to this issue is the interplay among…

Abstract

Purpose

Strategy scholars have argued that microlevel behavioral decisions by firms play a disproportionate role in making a firm nimble. Central to this issue is the interplay among several factors, such as actions by individual actors, firm-level decisions and broader changes in the economic environment that lead to a firm being successful in a competitive environment. The purpose of this paper is to offer a theoretical exploration of microfoundations research and subject the idea to empirical analysis using the constructs of customer orientation, competitor orientation and technology orientation as microfoundations of strategy.

Design/methodology/approach

Data collected through a key informant survey of executives were tested through a hierarchical regression analysis.

Findings

The results of the study suggest that the microfoundations of strategy are located more in a firm’s customer and competitor focus, rather than a technological orientation. The findings also suggest that that customer orientation is a significant component of firm-level strategy and needs to be incorporated into decision-making in firms.

Originality/value

This study provides a framework that integrates the structural determinants of firm performance with microfoundations theory to refine our understanding of market knowledge capability.

Details

Management Research Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 24 June 2024

Hailiang Zou, Xiyuan Yang and Ruijing Wang

This study aims to investigate the antecedents of corporate social responsibility (CSR) from the perspective of competitive dynamics and proposes a correlation of CSR between…

Abstract

Purpose

This study aims to investigate the antecedents of corporate social responsibility (CSR) from the perspective of competitive dynamics and proposes a correlation of CSR between competing firms because rival firms’ engagement in CSR induces the focal firm’s catch-up to keep pace with them.

Design/methodology/approach

Using a sample of Chinese listed companies through the lens of firm dyads, and drawing on the awareness-motivation-capability (AMC) framework, a set of contingencies of firms’ competitive catch-up in CSR are examined, including the visibility of its competitors, the interdependence between the focal firm and its competitors and the focal firm’s resource slack.

Findings

The empirical results reveal that a focal firm’s CSR is in a positive relationship with that of its competitors, which is strengthened by the visibility of its competitors, the interdependence between the focal firm and its competitors, and is affected by the focal firm’s resource slack.

Originality/value

These findings uncover the interplay of CSR among competitors, enriching our understanding of its antecedents by extending the AMC framework to the CSR context.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Open Access
Article
Publication date: 26 July 2024

Janez Dolšak

This study aims to analyse the effect of competition on retail fuel prices in a small European Union (EU) country with high market concentration.

Abstract

Purpose

This study aims to analyse the effect of competition on retail fuel prices in a small European Union (EU) country with high market concentration.

Design/methodology/approach

The researchers use a panel data set to estimate a fuel price equation that includes supply and demand factors as well as time-fixed effects.

Findings

The study finds that more competitors in the local market decrease prices, whereas the high market share of oligopoly brands does not condition this effect. Additionally, independent brands set lower prices than wholesalers, and gas stations located near the borders of almost all neighbouring countries are associated with higher prices.

Research limitations/implications

The study suggests that Slovenia’s retail fuel market maintains competitive pricing despite high oligopolistic shares because of historical regulatory influences that shaped firm behaviour and pricing strategies, along with geographical and economic factors such as Slovenia’s role as a transit country. External competitive pressures from neighbouring countries and high levels of traffic, combined with the remnants of regulatory structures, help prevent market abuses and keep fuel prices lower than in other EU countries.

Practical implications

It also indicates that policy should encourage fiercer competition in the local market by increasing the density of gas stations, especially from independent brands.

Originality/value

These findings may be associated with specific country characteristics. This paper introduces unique findings that shed light on the impact of a small market on competition, with a particular focus on highlighting the effect of oligopolistic brands.

Details

Applied Economic Analysis, vol. 32 no. 95
Type: Research Article
ISSN: 2632-7627

Keywords

Article
Publication date: 27 February 2024

Fenfang Lin and Teck-Yong Eng

Previous studies focus on the direct effects of marketing analytics on entrepreneurial performance, but few explore the underlying mechanisms. Drawing on affordance theory, this…

Abstract

Purpose

Previous studies focus on the direct effects of marketing analytics on entrepreneurial performance, but few explore the underlying mechanisms. Drawing on affordance theory, this study explores pathways through new product innovation (NPI) for the effects of marketing analytics on business performance. NPI is a market-based innovation concept comprising customer- and competitor-driven NPD and incremental innovation.

Design/methodology/approach

Using survey data collected from UK-based entrepreneurial firms operating in the IT and telecoms industries, we apply confirmatory factor analysis and a sequential structural equation model to test the mediating role of NPI in the effect of marketing analytics on market performance and financial performance.

Findings

The results show that marketing analytics enhances business performance through competitor-driven but not customer-driven NPD. Although using marketing analytics to generate customer knowledge for existing product innovation may enhance market performance, this positive effect becomes negative when competitor-driven NPD is undertaken to improve existing product innovation.

Originality/value

This study makes significant contributions to the innovation and NPD literature. It delves deeper into the existing view on the positive contributions of customer engagement to business value creation, revealing the significance of competitor knowledge to enhance business performance through marketing analytics, particularly in the context of IT and telecoms entrepreneurial firms.

Details

Journal of Small Business and Enterprise Development, vol. 31 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 28 August 2024

Yu-Ching Chiao, Chun-Chien Lin and Yu-Chen Chang

This study explores the evolutionary relationship between multimarket contact (MMC) and competitive actions among multinational corporations (MNCs). It aims to enhance the…

28

Abstract

Purpose

This study explores the evolutionary relationship between multimarket contact (MMC) and competitive actions among multinational corporations (MNCs). It aims to enhance the understanding of international market competition by incorporating insights into dynamic competition and parent–subsidiary relationships.

Design/methodology/approach

A structured content analysis was used to identify the competitive actions of global shipping liners. The dataset includes 8,204 actions identified across nine global arenas. Data were collected from 6,553 monthly news articles on Alphaliner. The period covered is from January 1, 2015, to June 30, 2023.

Findings

The results indicate that a higher degree of MMC leads to greater competitive aggressiveness, supporting the combination of mutual forbearance and the Red Queen effect. Additionally, market importance triggers the mutual forbearance effect, whereas competitive rivalry is weaker for overlapping cross-market contacts. Furthermore, local competitive intensity increases MNCs' contact and echoes the Red Queen effect, especially for subsidiaries facing increasing pressure from local responsiveness.

Research limitations/implications

Limitations include reliance on Alphaliner, potential inaccuracies from proxy variables, and unmeasured headquarters–subsidiary interactions. Future research should explore other industries and extend the study period for broader applicability and generalization.

Practical implications

By interlacing mutual forbearance with the Red Queen effect within a coopetition framework, managers can devise strategies to balance competition and collaboration, thereby ensuring long-term viability and growth in global markets.

Originality/value

This study extends the concept of MMC to the context of global shipping liners, a previously underexplored sector. Unlike earlier research, this study empirically examines MMC dynamics globally and integrates mutual forbearance and the Red Queen effect.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

1 – 10 of over 5000