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Chapter 10: Competitive Dynamics Stimulated by Pioneers’ Technological Innovation: A Theoretical Framework
Francesco Garraffo and Gwendolyn Lee INTRODUCTION This chapter provides a theoretical framework for the factors that influence the competitive dynamics stimulated by pioneers’ technological innovation. The issues of competitive dynamics analyzed are: a) the speed and number of competitors’ responses, and b) the nature of responses undertaken against the pioneer’s innovation, in terms of imitation versus differentiation. Adding to the literature on pioneers’ market (dis)advantages and interfirm rivalry, this chapter provides some initial insights to the following fundamental question related to the competitive dynamics stimulated by pioneers’ technological innovation: What variables affect the speed and number of competitors’ responses and the nature of their responses? Our answer to this question explains how the competitive dynamics stimulated by pioneers begins, and how it evolves over time. The theoretical bases of the analysis come from the literature on pioneers’ market advantages and interfirm rivalry. The joint consideration of these two complementary research streams provides an explanation for the evolution of competition between the pioneer and its competitors. Studies of pioneers’ market (dis)advantages (Adner, 2002; Cooper and Schendel, 1976; Foster, 1986; Golder and Tellis, 1993; Lieberman and Montgomery, 1988 and 1998; Robinson and Fornell, 1985; Urban et al., 1986) and interfirm rivalry (Baum and Korn, 1996; Bettis and Weeks, 1987; Cooper and Smith, 1992; Cusumano et al., 1992; Gatignon et al., 1989; Karnany and Wernerfelt, 1985; Mylonadis and Rosenbloom, 1982; D’Aveni, 1994; Hill and Rothaermel, 2003; Peteraf, 1993; Porter, 1980 and 1985; Smith and Wilson, 1995) occupy a central position in...
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