Session 417

Networks of Competition and Cooperation

Track N

Date: Tuesday, September 23, 2014

 

Time: 08:00 – 09:15

Paper

Room: Estancia 307


Session Chair:

  • Dovev Lavie, Technion-Israel Institute of Technology

Title: Competition and Firm Performance in a World of Networks

Authors

  • Dovev Lavie, Technion-Israel Institute of Technology

Abstract: With the convergence of industries and blurring industry boundaries, conventional models for industry analysis and interfirm performance heterogeneity offer limited insights. Laying the foundation for competition network theory, this conceptual study suggests that a firm’s network of competitive relations can affect its performance. Specifically, firm performance is predicted to decline with the intensity of competitive relations and degree centrality in the firm’s competition network. In turn, the centrality of competitors enhances its performance, while structural equivalence of the firm and its competitors’ relations mitigate this performance effect. Finally, variation in the intensity of competition is expected to generate an inverted U-shaped performance effect. Hence, the firm’s position in its competition network and the nature of its competitive relations shape its performance.

Title: Do Similar or Complementary Competitors form More Alliances? Distance Formation Determinants

Authors

  • Sonya H. Wen, Tamkang University

Abstract: Do similar or complementary competitors form more alliances? We proposed multidimensional distance determinants to explain why competitors form alliances, by applying the literature of competitive dynamics and resource-based view in the context of leaders competing in the same technology-intensive industry. Two competing hypotheses of resource similarity versus resource complementarity to increase the propensity of alliance formation between competitors were developed and tested by a sample of 600 firm-dyads of 25 semiconductor leaders in two decade-periods during 1990 and 2009. Extending the framework of competitive dynamics to cooperative alliances, this study provided the empirical evidence for resource similarity to increase not only competitive tension but also cooperative incentives between industry leaders.

Title: Rivalry in Cooperative Environments: Collective Organizational Identities and the Emergence of Competitive Dynamics in Craft-Based Industries

Authors

  • Cameron Verhaal, Georgia State University
  • Jake Hoskins, Millsaps College

Abstract: We study how competitive dynamics emerge in industries that have historically enjoyed a tacit and broad based cooperative environment. While a great deal of work has addressed specific cooperative firm behaviors (i.e., strategic alliances and joint ventures), less is understood about how organizational perceptions of cooperation and rivalry emerge. We focus on craft based industries (such as the microbrewery, artisan cheese, farm to table restaurant, and organic food industries) and argue that a cooperative environment, predicated on a collective organizational identity, allows these firms to thrive even in markets with high levels of rivalry. Moreover, we seek to identify the inflection point at which these cooperative markets become more competitive and contentious. Finally, the implications of firm-specific characteristics impact on these competitive dynamics are discussed.

Title: The Effect of Multimarket Contact on Alliance Partner Selection

Authors

  • Wonsang Ryu, Purdue University
  • Thomas Brush, Purdue University

Abstract: We investigate how multimarket contact between two firms influences the likelihood of alliance formation between them. Some may argue that when two firms compete across multiple markets simultaneously, they will become more competitive rivals and thus be less likely to cooperate. However, we claim that since multimarket contact reduces information asymmetry and enhances calculative trust between multimarket rivals, they can instead be better alliance partners to each other. We also argue that the positive effect of multimarket contact on the likelihood of alliance formation is more pronounced when two firms in a dyad lack prior ties and form alliances in hi-tech industries or in areas new to the both partners. Our hypotheses are supported by random-effects logit models based on 2,679,275 dyad-year observations.

All Sessions in Track N...

Sun: 08:00 – 09:15
Session 408: Future Research Directions in Cooperative Strategy
Sun: 11:15 – 12:30
Session 427: Research Methods in Cooperative Strategy
Sun: 15:45 – 17:00
Session 422: Alliance Formation and Stakeholder Perceptions
Sun: 17:15 – 18:30
Session 610: Cooperative Strategies IG Business Meeting
Mon: 08:00 – 09:15
Session 418: The Structure and Evolution of Networks
Session 420: Relational Mechanisms and Governance Choice in Alliances
Mon: 11:00 – 12:15
Session 416: Resource Dependence, Power Relations and Cooperation
Session 423: Alliances and Innovation Performance
Mon: 14:45 – 16:00
Session 424: Partnering Experience, Alliance Governance, and Performance
Session 425: Tradeoffs and Opportunism in Cooperative Relations
Mon: 16:30 – 17:45
Session 419: Cognition and Learning in Alliances
Tue: 08:00 – 09:15
Session 409: Increasing the Relevance of Strategy Research
Session 417: Networks of Competition and Cooperation
Tue: 15:30 – 16:45
Session 421: Acquisitions, Alliances, and Contracts
Tue: 17:15 – 18:30
Session 454: Multipartner Cooperation and Third-Party Relations


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