Competitive Strategy

Quantum leaps or baby steps?

While the pursuit of novel technological ideas is the driving force of sustained competitive advantage, managers often reject novel ideas in favor of more familiar ones. How then can managers…

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Bennett, Seamans, & Zhu – Cannibalization & option values in secondary markets

We examine how reducing search frictions in secondary markets affects the value appropriated by firms in primary markets. We characterize two effects on primary-market firms caused by intermediaries entering secondary…

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Karna, Richter, & Riesenkampff – Capabilities & the environment

Within the capabilities‐based view of the firm, there is debate about the relative importance of ordinary and dynamic capabilities for firm performance and about the extent to which their performance…

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In Vogue: How mere proximity to high-status neighbors affects aspirational pricing in US fashion

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Uriel Stettner & Dovev Lavie on ambidexterity

Research streams on competition and cooperation are central to the field of strategic management but have evolved independently. The emerging literature on coopetition has brought attention to the phenomenon of…

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Hyperspecialization and Hyperscaling: A Resource-Based Theory of the Digital Firm

Digital firms tend to be both nar-row in their vertical scope and large in their scale. Weexplain this phenomenon through a theory about howattributes of firms’ resource bundles impact their…

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Shane Greenstein on the Decline of Encyclopedia Britannica

An established and leading firm, such as Encyclopædia Britannica, would seem to have enormous advantages over its competitors in a new market. Why would a successful firm come to have…

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On Top of The Game When Freemium Products Succeed

Freemium products requirewidespread diffusion for their success. One way to dothis is by incorporating social features (e.g., multiplayerfunctionality, virtual collaboration, ridesharing), whichcan generate network effects and result in a productbecoming…

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The Nanoeconomics of FirmLevel DecisionMaking and Industry Evolution

What determines firm outcomes in terms of acquisition, dissolution, and survival? This article answers this crucial question of strategy and elaborates on the extent to which the outcome is under…

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Health insurance benefits as a labor market friction

This study examines whethersmall firms that offer health insurance to theiremployees have better performance outcomes. Eventhough health insurance is a costly investment for smallfirms, there has been scant strategy- and…

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