Matching response to competitors’ moves under asymmetric market strength

Kai Yu Hsieh, Eunjung (E J.). Hyun

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This paper investigates a firm's inclination to match a rival's strategic move under asymmetric market strength. Drawing from the awareness-motivation-capability framework, we theorize that a firm is more likely to match modestly weaker competitors to sustain its current lead and match modestly stronger competitors to eschew lagging further behind; conversely, a firm is less likely to match far weaker competitors due to its lack of attention and match far stronger competitors due to its inability to compete. Event history analysis of a set of IT companies’ entry moves into various locations in China exhibits support for our hypotheses. Our findings suggest that a firm's matching response most often occurs under a moderate level of asymmetric market strength.

Original languageEnglish
Pages (from-to)202-212
Number of pages11
JournalJournal of Business Research
Volume82
DOIs
Publication statusPublished - 2018 Jan 1

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Keywords

  • Asymmetric market strength
  • Competitive strategy
  • Entry behavior
  • Matching response

ASJC Scopus subject areas

  • Marketing

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