BOYD & BRESSER – PERFORMANCE IMPLICATIONS OF DELAYED COMPETITIVE RESPONSE
- Competitive responses on firm performance, challenges dominant assumption that speed is beneficial
o For responders
§ Inverted U-shape
§ Too quick or too slow = worse
§ Moderated (measured) delays are the best
o For 1st movers
§ Increases linearly with length of response delay (positive linear)
§ Balanced = optimal
§ 1st mover advantage = linked to market insights, drive and brand leadership
- Faster responses are not universally superior; delayed responses can yield equal or superior performance
- Follower strategies = inferior unless responses are rapid and decisive
- Competitive dynamics = emphasize speed and aggressiveness à acknowledge risk of haste and inertia
- Factors influencing timing errors = bad luck, conscious choices, blind spots (overconfidence and rigidity)
- Structured content analysis
o Event study methodology
§ Links actions to stock market performance
- IV = response delay à number of working days between action and response
- DV = responder + first mover performance à CAR
- Controls = competitive action type, industry-/firm-level controls
- Limited to US retail industry
- No long-term measurement for competitive advantage
NADKARNI ET AL – EXECUTIVE TEMPORAL DEPTH, INDUSTRY VELOCITY ON
COMPETITIVE AGGRESSIVENESS
- Temporal depth interacts with velocity to shape competitive aggressiveness and performance
o Past temporal depth = how far back executives look considering events
o Future temporal depth = how far ahead executives look when contemplating future
- Competitive aggressiveness generally improves firm performance (measured via ROA + ROS)
o Stronger in high-velocity industries
- Temporal forces = govern the creation and erosion of CA
o Micro temporal forces = firm level (speed, timing, intensity)
o Macro temporal forces = industry level (dynamism, velocity, competitiveness)
- Low velocity industries need longer temporal depth = greater aggressiveness à short reduces
- High velocity industries need shorter temporal depth = greater aggressiveness à longer reduces
- Calibrate horizon to velocity
o Long = stable
o Short = turbulent
- Content analysis
- IV = executive temporal depth à content analysis of archival documents
- DV = (competitive aggressiveness à action volume and speed), (firm performance à ROA + ROS)
- MOD = industry velocity à rate at which opportunities appear or disappear
- MED = competitive aggressiveness à frequency and intensity of competitive actions
- Control = firm size, industry characteristics, prior performance
- Measurement of temporal depth relies on textual proxies, which may not fully capture executive cognition
, SIRMON ET AL – STRENTHS AND WEAKNESSES
- Strengths and weaknesses jointly influence
- Strengths and weaknesses change over time
- Power of strength sets = positive curvilinear relationship on performance
o More strengths to create synergies
- Weight of weakness sets = negative linear relationship on performance
o Weaknesses make firm vulnerable
- Advantage types:
o High strengths + low weaknesses = high performance
o High strengths + high weaknesses = highest performance possible, but high variance
o Low strengths + high weaknesses = poor performance, overwhelmed
o Low strengths + low weaknesses = neutral/average performance (industry average)
- Resource rich environment = easier to reduce weaknesses
- Prior performance improves Firm Specific Advantages and can increase strengths + decrease weaknesses
- Strengths relative increase performance but depends on context
- Weaknesses relative decrease performance but depends on context
- Sustained competitive advantage is rare; firms instead concentrate a series of temporary advantages
- IV = strength + weakness sets à CEO-self evaluation
- DV = relative performance à firm-value-added = multi-item performance indices
- MOD = competitive intensity à degree of rivalry within the market
- Control = firm size, firm age, market conditions
- Does not prescribe clear managerial rules for resolving strength-weakness trade-offs
SCHILKE – DYNAMIC CAPABILITIES FOR COMPETITIVE ADVANTAGE
- Conditions when DCs generate CA
- DCs = the ability to integrate, build, reconfigure internal + external competences
- Inverted u-shape moderating effect
o DCs positively influence performance in moderate dynamic environments, dimmish in turbulent of stable
ones
- In low-dynamism environments
o Dynamic capabilities are costly and unnecessary
o Stable routines and exploitation of existing resources dominate
- In high-dynamism environments
o Routine-based dynamic capabilities struggle due to
§ Matching problems (unfamiliar situations)
§ Inertia problems (over-reliance on past solutions)
- Environmental dynamism = perception of market change, tech volatility and competitive unpredictability
- Intermediate dynamism is the sweetspot
- Two dynamic capabilities
o Alliance management = routines for partner identification, inter organizational learning and coordination
o New product development = routines aimed at reconfiguring a firms product portfolio
- Investing in dynamic capabilities is a strategic option
- Longitudinal study
- IV = dynamic capabilities à multi-item survey scales
- DV = competitive advantage à strategic + financial performance = ROI / ROS
- MOD = environmental dynamism à perceived rate and unpredictability of change in market and technology
- Control = firm size, firm age, industry
- Competitive responses on firm performance, challenges dominant assumption that speed is beneficial
o For responders
§ Inverted U-shape
§ Too quick or too slow = worse
§ Moderated (measured) delays are the best
o For 1st movers
§ Increases linearly with length of response delay (positive linear)
§ Balanced = optimal
§ 1st mover advantage = linked to market insights, drive and brand leadership
- Faster responses are not universally superior; delayed responses can yield equal or superior performance
- Follower strategies = inferior unless responses are rapid and decisive
- Competitive dynamics = emphasize speed and aggressiveness à acknowledge risk of haste and inertia
- Factors influencing timing errors = bad luck, conscious choices, blind spots (overconfidence and rigidity)
- Structured content analysis
o Event study methodology
§ Links actions to stock market performance
- IV = response delay à number of working days between action and response
- DV = responder + first mover performance à CAR
- Controls = competitive action type, industry-/firm-level controls
- Limited to US retail industry
- No long-term measurement for competitive advantage
NADKARNI ET AL – EXECUTIVE TEMPORAL DEPTH, INDUSTRY VELOCITY ON
COMPETITIVE AGGRESSIVENESS
- Temporal depth interacts with velocity to shape competitive aggressiveness and performance
o Past temporal depth = how far back executives look considering events
o Future temporal depth = how far ahead executives look when contemplating future
- Competitive aggressiveness generally improves firm performance (measured via ROA + ROS)
o Stronger in high-velocity industries
- Temporal forces = govern the creation and erosion of CA
o Micro temporal forces = firm level (speed, timing, intensity)
o Macro temporal forces = industry level (dynamism, velocity, competitiveness)
- Low velocity industries need longer temporal depth = greater aggressiveness à short reduces
- High velocity industries need shorter temporal depth = greater aggressiveness à longer reduces
- Calibrate horizon to velocity
o Long = stable
o Short = turbulent
- Content analysis
- IV = executive temporal depth à content analysis of archival documents
- DV = (competitive aggressiveness à action volume and speed), (firm performance à ROA + ROS)
- MOD = industry velocity à rate at which opportunities appear or disappear
- MED = competitive aggressiveness à frequency and intensity of competitive actions
- Control = firm size, industry characteristics, prior performance
- Measurement of temporal depth relies on textual proxies, which may not fully capture executive cognition
, SIRMON ET AL – STRENTHS AND WEAKNESSES
- Strengths and weaknesses jointly influence
- Strengths and weaknesses change over time
- Power of strength sets = positive curvilinear relationship on performance
o More strengths to create synergies
- Weight of weakness sets = negative linear relationship on performance
o Weaknesses make firm vulnerable
- Advantage types:
o High strengths + low weaknesses = high performance
o High strengths + high weaknesses = highest performance possible, but high variance
o Low strengths + high weaknesses = poor performance, overwhelmed
o Low strengths + low weaknesses = neutral/average performance (industry average)
- Resource rich environment = easier to reduce weaknesses
- Prior performance improves Firm Specific Advantages and can increase strengths + decrease weaknesses
- Strengths relative increase performance but depends on context
- Weaknesses relative decrease performance but depends on context
- Sustained competitive advantage is rare; firms instead concentrate a series of temporary advantages
- IV = strength + weakness sets à CEO-self evaluation
- DV = relative performance à firm-value-added = multi-item performance indices
- MOD = competitive intensity à degree of rivalry within the market
- Control = firm size, firm age, market conditions
- Does not prescribe clear managerial rules for resolving strength-weakness trade-offs
SCHILKE – DYNAMIC CAPABILITIES FOR COMPETITIVE ADVANTAGE
- Conditions when DCs generate CA
- DCs = the ability to integrate, build, reconfigure internal + external competences
- Inverted u-shape moderating effect
o DCs positively influence performance in moderate dynamic environments, dimmish in turbulent of stable
ones
- In low-dynamism environments
o Dynamic capabilities are costly and unnecessary
o Stable routines and exploitation of existing resources dominate
- In high-dynamism environments
o Routine-based dynamic capabilities struggle due to
§ Matching problems (unfamiliar situations)
§ Inertia problems (over-reliance on past solutions)
- Environmental dynamism = perception of market change, tech volatility and competitive unpredictability
- Intermediate dynamism is the sweetspot
- Two dynamic capabilities
o Alliance management = routines for partner identification, inter organizational learning and coordination
o New product development = routines aimed at reconfiguring a firms product portfolio
- Investing in dynamic capabilities is a strategic option
- Longitudinal study
- IV = dynamic capabilities à multi-item survey scales
- DV = competitive advantage à strategic + financial performance = ROI / ROS
- MOD = environmental dynamism à perceived rate and unpredictability of change in market and technology
- Control = firm size, firm age, industry
