Competitive Decision Making in Declining Industries

Lamont, Bruce T.; Hoffman, James J.; Forte, Monique

doi:10.1108/eb028789

Cited by 8 publications

(3 citation statements)

References 18 publications

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“…Also included is calendar time to control for the possibility that firms learn over time to adjust their strategies so as to enhance their survival. Previous theory suggests that, in declining industries, the heightened salience of the destructive consequences of intense competition encourages firms to engage in cooperative strategies Lamont et al 1993). One would expect that the institutional structures of industrial districts will more easily induce cooperation than would production systems where these structures are missing.…”

Section: Methodsmentioning

confidence: 99%

Specialization in a Declining Industrial District

Staber

1997

Growth and Change

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Although flexible specialization is regarded as one of the hallmarks of industrial districts, its consequences for f i r m performance have not attracted much empirical attention. Using event-history data on a complete population of textileclothing firms in Baden-Wiimemberg in the Reutlingen (Germany) district from 1946 to 1993, this paper tests the proposition that specialized firms have a survival advantage over more integrated firms. Logistic regression models of failure probabilities show that, contrary to predictions derived from the district model, horizontally and vertically integrated firms have outlived more specialized firms. This study demonstrates the importance of dynamic research designs that incorporate information on strategic differences in a complete population of district firms, observed over an extended time frame.

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Section: Methodsmentioning

confidence: 99%

Specialization in a Declining Industrial District

Staber

1997

Growth and Change

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“…For example, a study of the UK steel castings industry during its fall in the 1970s and 1980s suggests that co-operative strategies, in the forms of acquisitions, swaps, cartels or strategic alliances among firms in the industry, outperformed the competitive strategy in the adjustment process (Baden-Fuller, 1989). Those arguments notwithstanding, barriers exist that hinder firms from using co-operative strategies in declining industries – for example, firms’ strategic inertia, existing anti-trust regulations and power asymmetries between competing firms (Lamont et al , 1993). All of these studies indicate that in a declining industry, firms may need to consider adjusting their competitive strategies away from those that are advantageous in a growing industry.…”

Section: Strategic Responses To Industry Declinementioning

confidence: 99%

Declining industries in emerging economies and firms’ strategies

Tan

2022

CPOIB

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Purpose International business (IB) and strategy research in the context of emerging economies (EEs) has focused traditionally on the strategies of firms in and from those markets to seize opportunities arising from their economic growth. This paper aims to demonstrate that declining industries in EEs are an important but overlooked research context for critical IB scholarship and to illuminate special considerations for strategising under those conditions. Design/methodology/approach This paper provides an overview of declining industries in EEs and includes an illustration of a sample of such industries in major EEs. This paper then critically reviews research on firms’ strategies in declining industries and extends that critical discussion to the EE context. Findings Firstly, this paper provides evidence relating to declines in industries in EEs. Secondly, this paper identifies three major strategies that firms use in response to an industry decline and critically discusses those strategies’ manifestations and special considerations in the context of EEs. Social implications Industry decline in EEs and the resultant responses of multi-national enterprises and local firms, such as business exit, market competition and firm diversification strategies, cause significant social challenges. This paper calls for further research on the phenomenon, especially regarding its distinctive ramifications compared with those in the context of developed countries. Originality/value This paper contributes to the critical IB scholarship by questioning the assumptions around high economic growth in individual EE industries and by challenging a universalistic approach that applies findings grounded in declining industries in developed countries to the distinctive context of EEs. This paper also provides forward-looking expositions concerning industry decline in EEs.

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“…There are many emerging innovation that is used in society. There are many old and quite large today find themselves in business activities that have little promise for future growth and profit (Lamont, Hoffman, & Forte, 1993). Companies and organization are struggling to create value and deliver it to consumers (Molina-Morales, Martinez-Chafer, & Valiente-Bordanova, 2017).…”

Section: Introductionmentioning

confidence: 99%

Innovations for Declining Product to Extend Product Life Cycle (Case of TelX International Call Service Vinci)

Mahadi

Dhewanto²

2019

EJBMR

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Telkom SLI 007 is one of PT Telkom Indonesia product to make an international call directly. This product is facing its decline phase according to product life cycle process. People start to leave SLI and even do not know this product. However, this product can still give revenue for PT Telkom. But, that revenue shows declining trend from over previous years. Innovation is needed to create more value for SLI 007 and extend the life of this product. Aim of this research is to identify the factors that can influence the decline of SLI 007 and determine the innovations that are suitable and can be done for this product. This research uses qualitative and quantitative method. Qualitative data is collected from interview with Manager Regional Wholesale Service Telkom Regional 3 and observation in PT Telkom. Quantitative data is collected through questionnaire from 70 respondents. Secondary data is collected from annual reports, journals, and books that support the research. Frameworks that used in this research are product life cycle framework and synergic innovation management model. Decline of SLI 007 is caused by several factors. First is because the product has entered its mature stage. Second cause is less intensive marketing process from PT Telkom for this product. Third is caused by the characteristic of customers. Low switching cost and niche market makes this product has little sales. Last factor is caused by other products that use newer technology for their products, for example the usage of internet. Innovations that are proposed for SLI 007 are change the packaging of SLI 007 and create attractive user interface for this product, partnering with VoIP (Voice ove Internet Protocol) provider to create better service, and sell SLI 007 in bundle with other Telkom services.

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Competitive Decision Making in Declining Industries

Cited by 8 publications

References 18 publications

Specialization in a Declining Industrial District

Specialization in a Declining Industrial District

Declining industries in emerging economies and firms’ strategies

Innovations for Declining Product to Extend Product Life Cycle (Case of TelX International Call Service Vinci)

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