Anticipated responses: The positive side of elicited reactions to competitive action
Anticipated responses: The positive side of elicited reactions to competitive action
This study advances the action-oriented perspective on strategy dynamics. Strategy research suggests that a firm’s profit will decrease when facing rival responses, yet anecdotal evidence indicates that countermoves may enhance its performance. What is the interaction effect of simultaneous negative- and positive-side competitive responses on organisational performance? We propose that the answer depends not only on the actor’s characteristics but also the action’s characteristics. Grounded in empirical facts, our formal model of competitive dynamics examines the possibility of anticipated responses that are deliberately elicited by the attacking firm. We show that against attentive rivals, a firm with high attention and low aggressiveness can utilise visible actions to achieve its strategic intention and deployment. Our study offers significant implications for theory and practice.
competitive dynamics, behavioural strategy, cognition, system dynamics, formal theory
316-330
Yang, Shu-Jung
c7b91fda-ee4f-4ef6-aa45-0bb9c378e5fc
Liu, Yan Emma
da9a2411-43b8-4d88-acc9-5c51c722aade
February 2014
Yang, Shu-Jung
c7b91fda-ee4f-4ef6-aa45-0bb9c378e5fc
Liu, Yan Emma
da9a2411-43b8-4d88-acc9-5c51c722aade
Yang, Shu-Jung and Liu, Yan Emma
(2014)
Anticipated responses: The positive side of elicited reactions to competitive action.
Journal of the Operational Research Society, 66 (2), .
(doi:10.1057/jors.2014.3).
Abstract
This study advances the action-oriented perspective on strategy dynamics. Strategy research suggests that a firm’s profit will decrease when facing rival responses, yet anecdotal evidence indicates that countermoves may enhance its performance. What is the interaction effect of simultaneous negative- and positive-side competitive responses on organisational performance? We propose that the answer depends not only on the actor’s characteristics but also the action’s characteristics. Grounded in empirical facts, our formal model of competitive dynamics examines the possibility of anticipated responses that are deliberately elicited by the attacking firm. We show that against attentive rivals, a firm with high attention and low aggressiveness can utilise visible actions to achieve its strategic intention and deployment. Our study offers significant implications for theory and practice.
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More information
Accepted/In Press date: 6 January 2014
e-pub ahead of print date: 12 February 2014
Published date: February 2014
Keywords:
competitive dynamics, behavioural strategy, cognition, system dynamics, formal theory
Organisations:
Southampton Business School
Identifiers
Local EPrints ID: 377511
URI: http://eprints.soton.ac.uk/id/eprint/377511
ISSN: 0160-5682
PURE UUID: b00c8f2f-9449-4426-8864-708876631eb3
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Date deposited: 16 Jun 2015 08:35
Last modified: 14 Mar 2024 20:05
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Contributors
Author:
Shu-Jung Yang
Author:
Yan Emma Liu
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