From Crisis to Opportunity: How Market shocks Impact Interfirm Rivalry
Type
conference paper
Date Issued
2012-08-03
Author(s)
Abstract
This study incorporates the external environmental context into the study of competitive dynamics by examining how market shocks affect a firm's inclination to take new competitive action. We propose that market shocks temporarily change the rules of the competitive game. While we agree with prior research that third party rivalry is a major antecedent of competitive actions, we argue that in the aftermath of market shocks new competitive opportunities arise that lead managers to detach their focus from the competitive behavior their rivals have displayed. Considering the terrorist attacks of 9/11 and Hurricane Katrina as natural experiments, we study the amount and types of competitive actions firms within the global property and casualty (P&C) insurance industry have taken in their efforts to outmaneuver their rivals. We find support for our arguments and demonstrate how market shocks punctuate and alter patterns of interfirm rivalry.
[http://program.aomonline.org/2012/view/view_docProceedingsPaper.asp?subid=13153 Full Text]
[http://program.aomonline.org/2012/view/view_docProceedingsPaper.asp?subid=13153 Full Text]
Language
English
Keywords
Competitive Dynamics
Industry Shocks
Interfirm Rivalry
Insurance Industry
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Responsible Corporate Competitiveness (RoCC)
Refereed
Yes
Book title
The Informal Economy
Publisher
Academy of Management
Publisher place
New York
Volume
Paper 699
Event Title
72nd Academy of Management Annual Meeting (AOM) 2012 "The Informal Economy"
Event Location
Boston, USA
Event Date
03.-07.08.2012
Subject(s)
Division(s)
Eprints ID
210975