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The Role of Competitive Action in Market Share Erosion and Industry Dethronement: A Study of Industry Leaders and Challengers
Walter J. Ferrier, Ken G. Smith and Curtis M. Grimm
The Academy of Management Journal
Vol. 42, No. 4 (Aug., 1999), pp. 372-388
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/257009
Page Count: 17
You can always find the topics here!Topics: Market share, Industrial market, Market erosion, Industrial management, Industrial concentration, Corporate strategies, Industrial research, Extractive industries, Economic competition, Modeling
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Market share erosion and dethronement of market leaders are examined through the lens of "Austrian" economics. Our results suggest that leaders are more likely to experience market share erosion and/or dethronement when--relative to industry challengers--they are less competitively aggressive, carry out simpler repertoires of actions, and carry out competitive actions more slowly. These findings, based on seven years of data collected in 41 industries, contribute to research on hypercompetition, organizational decline, and competitive dynamics.
The Academy of Management Journal © 1999 Academy of Management