WHEN COMPETITORS MATTER?
Abstract
This review paper focuses to define broadly when the companies pay attention to their competitors from the logic of multimarket strategy theory. The theory assumes that firms usually intentionally enters to rivals market to decrease the rivalry. According to Mutual Forbearance logic, when competitors are operating in several markets simultaneously, it reduces the intensive competition, so one rival attack in one market might cause to be attacked by that firm in another market. So due to that firms usually have less motivation in hostile actions and enters each other’s market by creating multimarket contact. Also, this paper emphasizes that the multimarket strategy usually causes not intentional strategies of the firms, also due to the chance of multimarket contacts (MMC). This research distinguishes the notions of naïve MMC and purposive MMC depending on competitor awareness.References
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Korn, H. J., & Rock, T. T. (2001). BEYOND MULTIMARKE T CONTACT TO MUTUAL FORBEARANCE : PURSUIT OF MULTIMARKE T STRATEGY.
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Scott, J. T. (1989). Purposive diversification as a motive for merger. International Journal of Industrial Organization, 35-47.
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Smith, F. L., & Wilson, R. L. (1995). The predictive validity of the Karnani & Wernerfelt model of multipoint competition. Strategic Management Journal, 16, 143-160.
Stephan, J., Murmann, J. P., Boeker, W., & Goodstein, J. (2003). Bringing Managers into Theories of Multimarket Competition: CEOs and the Determinants of Market Entry. Organization Science 14, 403–21.
Barnett, W. P., Greve, H. R., & Park, D. Y. (1994). An evolutionary model of organizational performance. Strategic Management Journal, 15: 11-28.
Baum, J. A., & Korn, H. J. (1996). Competitive dynamics of interfirm rivalry. . Academy of Management Journal, 39, 255-291.
Baum, J. A., & Korn, H. J. (1999). Chance, imitative, and strategic antecedents of multimarket contact. Academy of Management Journal, 42, 171-193.
Bernheim, B. D., & Whinston, M. D. (1990). Multimarket contact and collusive behavior. RAND Journal of Economics, 21, 1-26.
Chen, M.-J. (1996). Competitor Analysis and Interfirm Rivalry: Toward A Theoretical Integration. Academy of Management Review Vol. 21, No. 1, 100–134.
DeSarbo, W., Grewal, R., & Wind, J. (2006). Who competes with whom? A demand-based perspective for identifying and representing asymmetric competition. Strategic Management Journal, 27, 101-129.
Edwards, C. D. (1955). Conglomerate bigness as a source of power. In Business concentration and price policy (Report on a National Bureau of Economics Research conference). Princeton, NJ: Princeton University Press, 331 - 359.
Evans, W. N., & Kessides, I. N. (1994). Living by the "Golden Rule": Multimarket contact in the U.S. airline industry. Quarterly Journal of Economics, 109, 341-366.
Feinberg, R. M. (1984). Mutual forbearance as an extension of oligopoly theory. Journal of Economics and Business, 36, 243-249.
Gimeno, J. (2002). The performance effects of unintended and purposive multimarket contact. Managerial and Decision Economics, 209-224.
Greve, H. R. (2000). Market Niche Entry Decisions: Competition, Learning, and Strategy in Tokyo Banking, 1894- 1936. The Academy of Management Journal, Vol. 43, No. 5, pp. 816-836.
Gur, F. A., & Greckhamer, T. (2018). Know Thy Enemy: A Review and Agenda for Research on Competitor Identification. Journal of Managemen, Vol. XX No. X, Month XXXX 1–29.
Haveman, H. A., & Nonnemaker, L. (2000). Competition in multiple geographic markets: The impact on growth and market entry. Administrative Science Quarterly 45, 232-267.
Iglesias, A. E. (2010). To Forbear or not to Forbear? A Behavioral Perspective of Multimarket Competition. Dissertation work. Georgia State University.
Jayachandran, S., Gimeno, J., & Varadarajan, P. (1999). Theory of multimarket competition: A synthesis and implications for marketing strategy. Journal of Marketing, 63, 49-66.
Karnani, A., & Wernerfelt, B. (1985). Multiple point competition. Strategic Management Journal, 87-96.
Knickerbocker, F. T. (1973). Oligopolistic reaction and multinational enterprise. Unpublished doctoral dissertation.
Korn, H. J., & Baum, J. A. (1999). Chance, imitative, and strategic antecedents of multimarket contact. Academy of Management Journal.
Korn, H. J., & Rock, T. T. (2001). BEYOND MULTIMARKE T CONTACT TO MUTUAL FORBEARANCE : PURSUIT OF MULTIMARKE T STRATEGY.
Multiunit Organization and Multimarket Strategy, 53-74.
Porac, J. F., & Thomas, H. (1990). Taxonomic mental models in competitor definition. Academy of Management Review, 15, 224-240.
Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.
Scott, J. T. (1989). Purposive diversification as a motive for merger. International Journal of Industrial Organization, 35-47.
Scott, J. T. (1991). Multimarket Contact among Diversified Oligopolists. International Journal of Industrial Organization, 225–38.
Smith, F. L., & Wilson, R. L. (1995). The predictive validity of the Karnani & Wernerfelt model of multipoint competition. Strategic Management Journal, 16, 143-160.
Stephan, J., Murmann, J. P., Boeker, W., & Goodstein, J. (2003). Bringing Managers into Theories of Multimarket Competition: CEOs and the Determinants of Market Entry. Organization Science 14, 403–21.
Published
2020-06-24
How to Cite
KAMZABEK, Takhaui Barkhanuly.
WHEN COMPETITORS MATTER?.
SDU University Bulletin: Social Sciences, [S.l.], v. 52, n. 1, june 2020.
ISSN 2709-2410.
Available at: <https://journals.sdu.edu.kz/index.php/ss/article/view/44>. Date accessed: 25 apr. 2025.
doi: https://doi.org/10.47344/sdubss.v52i1.44.
Section
Articles
