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Competition network structure and product market entry
Author(s) -
Skilton Paul F.,
Bernardes Ednilson
Publication year - 2015
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2318
Subject(s) - competition (biology) , industrial organization , product (mathematics) , market structure , product differentiation , diversity (politics) , network structure , business , barriers to entry , new product development , network effect , economics , microeconomics , marketing , computer science , cournot competition , sociology , ecology , geometry , mathematics , machine learning , anthropology , biology
This study proposes and tests a theory of the effects of competition network structure on product market entry. Competition networks are defined as the patterns of interdependence between rivals that emerge from direct competition. Studying networks based on competitive interdependence allows us to extend social network theory to new territory and to enhance our understanding of product market entry. We propose that the size, interconnectedness and diversity of competition networks influence subsequent product market entry in a systemic way. We test our hypotheses in a unique dataset drawn from the aircraft modification industry . Copyright © 2014 John Wiley & Sons, Ltd.