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DAY 2

Theoretical and Methodological Extensions of Competitive Dynamics Research

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TMTDemography &Performance

Distress

GlobalMulti-market Competition

Inter-organizational

Networks

Action

Awareness

Motivation C

apab

ility Performance

Theoretical Extensions

Awareness-Motivation-Capability (AMC) Perspective

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Theoretical Extensions

•What are most important theoretical or conceptual extensions?

•Do we better understand “how” or “why” competitive action occurs?

•Have we moved toward a predictive theory of competitive dynamics?

•What more do we need?

Coke’sActions

Pepsi’sAction

Rivalry

CompetitiveOutcomes

IndustryCharacteristics

OrganizationalCharacteristics

da b ec da b ec

ActionPair 1

ActionPair 2

ActionPair 3

ActionPair 4

Coca-Cola

Pepsi

Action-Reaction Dyads

b b b a

ac c e

Prior Studies: Action “Repertoires”

time

Year-EndTallies

Coca-ColaCoca-Cola

PepsiPepsi

b bb

c

b

ba

c e

b

Sequence of Competitive Actions

time

MKT MKTPRICEMKT PRICESVCPROD

Sequence of Musical Notes

Music as Metaphor for Competitive Behavior

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Notes• Pitch • Volume • Dynamics• Duration• Voice

Like individual competitive actions

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Chords, Arpeggios• Harmonic anchor • Harmonic interval • or proximity• Harmonic sequence

Like pairs or combinations of competitive actions

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Melody• Timing, rhythm • Simplicity • Movement• Predictability• Familiarity• Phrasing• Motif

Like a meaningful, coherent series of competitive actions

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Notes• Pitch • Volume • Dynamics• Duration• Voice

•Chords, Arpeggios• Harmonic anchor • Harmonic proximity• Harmonic sequence

Melody• Timing, rhythm • Simplicity • Movement• Predictability• Familiarity• Phrasing• Motif

Music as metaphor for competitive behavior

Sequences

LANGUAGE:

BOXING: DNA:

qcheaTiueissesne. hsiT si a cesneueq.

This is a sequence.

Jab...Jab…Uppercut

CA

GT

AC

AT

AG

TA

CG

AT

AC

GA

MUSIC:

COMPUTER PROGRAM:

data actions2; subj = _n_; do i = 1 to max; output = matrix; end;run;

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Sequences in Competitive Interaction

• Ordered sample of things

• Logically unified sequence• Succession of market-based decisions• Patterns in stream of behaviors • Coordinated series of actions • Actions in a sequential strategic thrust

Coke’sActions

Pepsi’sAction

Rivalry

CompetitiveOutcomes

IndustryCharacteristics

OrganizationalCharacteristics

da b ec da b ec

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a

b

c

d

e

ca bec a b de ca bd

Coke Pepsi

d

aa

b

e

c

e

b

a

d

b

c c

Observed Sequence Observed Sequence

Competitive Actions Over Time

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Total

a

b

c

d

e

ca b

d

aca a dc e aad

c c

a a

e

a

d

b

a a aa 7

1

1

2

2

Observed Sequence of Pepsi’s Competitive Actions

Pepsi Strategic Simplicity

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Total

a

b

c

d

e

ea b

d

aca c de c bdd

e

c

d

a

c c

d

b b

a

e

a 3

2

2

3

3

Observed Sequence of Coke’s Competitive Actions

Coke Strategic Complexity

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a

b

c

d

e

ca eeca bde ca bd

d

e

aa a

d

b

b

e

c cc

Pepsi in time1 Pepsi in time2

b

Observed Sequence Observed Sequence

Pepsi Strategic Predictability

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a

b

c

d

e

c ab eca bde ca bd

Coke in time1

d

e

b

aa a

d

bb

e

c cc

Coke in time2

Observed Sequence Observed Sequence

Coke Strategic Unpredictability

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a

b

c

d

e

ca beca b de cab d

Pepsi

d

aa

b

e

c

e

b

a

d

b

c c

Observed Sequence Observed Sequence

Pepsi Strategic Conformity

Industry Norm

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a

b

c

d

e

ca bec a b de ca bd

Coke Industry Norm

d

aa

b

e

c

e

b

a

d

b

c c

Observed Sequence Observed Sequence

Coke Strategic Non-Conformity

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a

b

c

d

e

ca b

d

eca b de c abd

e

c

b

a

c

b

d

b

a

e

c

a

Observed Sequence of Coke’s Competitive Actions

Coke Strategic Chunking – Low Separation Scores

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a

b

c

d

e

ca b

d

eca bde ca bd

e

c

b

aa a

d

bb

e

c c

Observed Sequence of Pepsi’s Competitive Actions

Pepsi Strategic Disconnectedness

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(+)1.0 ----------------------------------------------------------------------------------- (-)1.0

a

b

c

d

e

ca b eca bde ca bd

a

Observed Sequence of Competitive Actions

Coke Strategic Motif – High Variance of Precedence Scores

c

d

b

e

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(+)1.0 ------------------------------------------------------------ (-)1.0

a

b

c

d

e

ca b eca b de c abd

a

Observed Sequence of Competitive Actions

Pepsi Strategic Randomness – Low Variance of Precedence Scores

c

b

d

e

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Methodological Extensions

•What are the most important advances in data, levels of aggregation, measures and analytical methods?

•Do we now better understand “how” or “why” competitive action occurs?

• …and how action relates to performance?

•Have we moved toward a predictive theory of competitive dynamics?

•What more do we need?

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Advocacy Presentations

•Three teams – three sets of research articles– Discuss and present (~10 minutes)

• General idea/phenomenon, research questions, motivation for these studies

• Theoretical reasoning– Key constructs– General hypothesized relationships

• General research approach– Data & measures– Analysis approach– Key findings

•Overall contribution•What’s missing? …and… What’s next?