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Essays on the behavioral foundations of competitive interaction

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dc.contributor Aalto-yliopisto fi
dc.contributor Aalto University en
dc.contributor.author Luoma, Jukka
dc.date.accessioned 2014-04-29T12:05:57Z
dc.date.available 2014-04-29T12:05:57Z
dc.date.issued 2013
dc.identifier.isbn 978-952-60-5410-0
dc.identifier.issn 1799-4934
dc.identifier.uri https://aaltodoc.aalto.fi/handle/123456789/12945
dc.description.abstract The competitive dynamics perspective offers a micro-level, dynamic view of market competition. It is axiomatic for students of competitive dynamics that competitive actions and interactions are shaped by the boundedly rational decision making of organizational actors. Thus competitive behavior cannot be inferred directly from the objective characteristics of the competitive situation. Competitive dynamics researchers have combined rather eclectic theoretical perspectives to develop a plethora of insightful behavioral hypotheses about the predictors of firms' competitive conduct and about the performance implications of those choices. Partly as a result, however, there is a paucity of efforts to systematically explore the behavioral foundations of competitive interaction. In this study, I engage in such an endeavor and propose that a routine-based view of interfirm rivalry offers a fruitful but underexplored behavioral basis for understanding how the bounded rationality of organizational actors influences the process and outcomes of market competition. The study consists of an overview and four essays, which contribute to a routine-based understanding of interfirm rivalry. I introduce and develop the concept competitive action routines, defined as repeated patterns of interaction between organizational members related to a firm's market moves. The first two essays study the role of competitive action routines in competition related to store openings between Finnish grocery retail organizations (1960-1995). Based on an in-depth qualitative investigation, I argue that competitive action routines are a valuable, often indispensable method with which firms cope with rapidly accelerating rivalry—contrary to the view held by many competitive dynamics scholars that routines are simply a source of inflexibility and inertia. The third essay is a quantitative empirical analysis of the evolution of product launch activities of Finnish mutual fund firms (1997-2009). The fourth essay explores the role of feedback in competitive interaction through a computational study. Together, these two studies suggest that environmental feedback is an important source of heterogeneity in competitive behavior because of the change in organizational routines and rules that the feedback generates. Overall, the routine-based approach to the study of interfirm rivalry acknowledges that the firm's competitive behavior is a collective enterprise of multiple individuals within the firm. This balances the almost exclusive focus of existing competitive dynamics literature on the very top-level members of organizations. Moreover, the routine-based view implies that rivalry hinges on the firms' previous encounters with competitors. Relatedly, the routine-based view conceptualizes the relationship between competitive actions and performance as a feedback mechanisms, which adds boundary conditions to existing claims about the virtues of competitive aggressiveness. Finally, in terms of predicting competitive moves, a routine-based view suggest that the likelihood, speed and other characteristics of competitive actions are best predicted by the attributes of firms' behavior in the recent past en
dc.format.extent 215 s.
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.publisher Aalto University en
dc.publisher Aalto-yliopisto fi
dc.relation.ispartofseries Aalto University publication series. DOCTORAL DISSERTATIONS fi
dc.relation.ispartofseries 176/2013 fi
dc.relation.haspart Jukka Luoma: Behavioral impediments to growing competitive activity: Insights from a longitudinal case study.
dc.relation.haspart Jukka Luoma and Juha-Antti Lamberg: Competitive action routines and their role in interfirm rivalry.
dc.relation.haspart Jukka Luoma, Jaakko Aspara and Henrikki Tikkanen: The effect of environmental feedback on firms’ product launch activity in nascent product markets.
dc.relation.haspart Jukka Luoma, Sampsa Ruutu, Henrikki Tikkanen and Adelaide King: The behavioral feedback dynamics of rivalry: a simulation study of competitive interaction and firm performance.
dc.title Essays on the behavioral foundations of competitive interaction en
dc.type G5 Artikkeliväitöskirja fi
dc.contributor.school Kauppakorkeakoulu fi
dc.contributor.school School of Business en
dc.contributor.department Markkinoinnin laitos fi
dc.contributor.department Department of Marketing en
dc.identifier.urn URN:ISBN:978-952-60-5410-0
dc.type.dcmitype text en
dc.programme.major Markkinointi fi
dc.programme.major Marketing en
dc.type.ontasot Väitöskirja (artikkeli) fi
dc.type.ontasot Doctoral dissertation (article-based) en
dc.contributor.supervisor Tikkanen, Henrikki, professor
dc.opn Laamanen, Tomi, professor, University of St. Gallen, Switzerland
dc.subject.helecon organisaatio
dc.subject.helecon kilpailu
dc.subject.helecon strategia
dc.subject.helecon käyttäytyminen
dc.subject.helecon markkinointi
dc.subject.helecon organization
dc.subject.helecon competition
dc.subject.helecon strategy
dc.subject.helecon behaviour
dc.subject.helecon marketing
dc.date.defence 2013-11-15
dc.dissid 492
dc.identifier.bibid 646737
local.aalto.digifolder Aalto_64231
local.aalto.digiauth ask

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