Structure of competitive environment and mimetic market entry

Kai Yu Hsieh

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This study explores the interactive market behaviours by examining mimetic market entry. We develop several constructs that capture the structural properties of competitive environment faced by a focal firm, and suggest that these properties moderate firm's tendency to mimic through affecting the interfirm competitive and learning dynamics. Data on pharmaceutical drug manufactures during the period of 1993 to 2001 shows that a firm is more likely to diversify itself into a new market that has been served by many of existing competitors in its original markets. Moreover, two structural properties of competitive environment moderate a firm's tendency to mimic. Direct market encounter between a firm's competitors promotes mimetic entry, while similarity between a firm's competitors in terms of product-market profiles discourages mimicry.

Original languageEnglish
Title of host publicationAcademy of Management 2006 Annual Meeting: Knowledge, Action and the Public Concern, AOM 2006
Publication statusPublished - 2006
Externally publishedYes
Event66th Annual Meeting of the Academy of Management, AOM 2006 - Atlanta, GA
Duration: 2006 Aug 112006 Aug 16

Other

Other66th Annual Meeting of the Academy of Management, AOM 2006
CityAtlanta, GA
Period06/8/1106/8/16

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ASJC Scopus subject areas

  • Management Information Systems
  • Management of Technology and Innovation

Cite this

Hsieh, K. Y. (2006). Structure of competitive environment and mimetic market entry. In Academy of Management 2006 Annual Meeting: Knowledge, Action and the Public Concern, AOM 2006