UNRAVELING COMPETITIVE INTERPLAY: AN EVOLVING RESEARCH PERSPECTIVE

• Prof.Sven K. Dahlstrom

  Chair of Strategic Management and Competitive Analysis Stockholm School of Economics, Sweden

  Author

• Dr. Felicia O. Adeniran

  Senior Lecturer in Business Competition and Innovation Department of Management, University of Lagos, Nigeria

  Author

This article provides an in-depth review of the evolving landscape of competitive rivalry research, highlighting intellectual shifts that have moved beyond traditional economic models to embrace behavioral, technological, and network-based perspectives. We explore how technology cycles profoundly influence competitive reactions, noting that multimarket participation is a critical factor affecting the likelihood and speed of these responses. The framework of agglomeration theory offers insights into the strategic positioning of new market entrants and its impact on incumbent reactions. Furthermore, we examine the sophisticated role of competitive signals, both deliberate and unintentional, as key communication mechanisms among rivals preceding and following market entry. The analysis extends to the formation of alliances, considering how they function as competitive reactions or, if pre-existing, influence the propensity for rivalry. Finally, we delve into the implications of competitor networks, which foster interdependency and shape the aggressiveness of competitive responses. Collectively, these concepts are crucial for understanding firms' reactions and defensive strategies when confronted by new entrants, disruptive technologies, or innovative products. We conclude by identifying promising avenues for future research in this dynamic field.

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