Dynamics of Competition and Strategy: A Literature Review of Strategic Management Models and Frameworks

Saadatmand, Mohammadsaleh; Dabab, Maoloud; Weber, Charles M.

doi:10.23919/picmet.2018.8481743

Cited by 15 publications

(16 citation statements)

References 81 publications

(109 reference statements)

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“…This view indicates that hypercompetition leads more markets towards perfect competition, where there are numerous buyers and sellers, low barriers to entry and exit, and low profit margins. Hypercompetition may or may not be contradicting to the IO view on competition (Foss and Knudsen 2003;Saadatmand, Dabab, and Weber 2018;Selsky, Goes, and Baburoglu 2007).…”

Section: Implications For Strategy Researchmentioning

confidence: 93%

“…In strategy content research, the question that often arises is how to gain and sustain superior firm-level competitive advantage over others (Foss and Knudsen 2003;Saadatmand, Dabab, and Weber 2018;Selsky, Goes, and Baburoglu 2007). Theoretical perspectives on performance and competitive advantages predate the strategic management literature.…”

Section: Implications For Strategy Researchmentioning

confidence: 99%

“…The traditional industrial organisation (IO) view identifies different types of competitive environments ranging from monopoly to perfect competition (Saadatmand, Dabab, and Weber 2018). This traditional view provides insights to firm performance and how firms gain competitive advantage through positioning in the industry structure, and creating strategies appropriate to this structure (Hanssen-Bauer and Snow 1996;Saadatmand, Dabab, and Weber 2018;Selsky, Goes, and Baburoglu 2007). An extension is the well-known five forces framework (Porter 1991(Porter , 1996.…”

Section: Implications For Strategy Researchmentioning

confidence: 99%

“…Another broad theory being questioned in the literature on hypercompetition is the resource-based view (RBV), the dominant contemporary approach to analysing sustainable competitive advantages (D'Aveni and Dagnino 2010; Selsky, Goes, and Baburoglu 2007). Using economic reasoning, Wernerfelt (1984) developed a theory from an interfirm perspective, to understand why some firms earn supernormal profits in comparison to others (Hunt 1995;Lockett, O'Shea, and Wright 2008;Saadatmand, Dabab, and Weber 2018). Barney (1991) defined value, rareness, inimitability and non-substitutability of resources to be conditions for building a sustainable competitive advantage.…”

Section: Implications For Strategy Researchmentioning

confidence: 99%

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The search for hypercompetition: evidence from a Nordic market study

Lindskov

Sund

Dreyer

2020

Industry and Innovation

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Some scholars and practitioners argue that markets have become hypercompetitive, decreasing the opportunities for sustainable competitive advantage. We test for increasing competition in a panel of 266 Danish firms from 7 industries over the period 1980-2017. We find no support for the argument that the market across industries has become hypercompetitive over this period. The durability of abnormal business returns has remained stable. Dynamism only changed in the 1980s, and levels of munificence are also stable. We do, however, find a small decrease in the survival probability rate of firms over time. Our results lead us to caution against the use of hypercompetition as a universal label for the state of contemporary competition.

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Section: Implications For Strategy Researchmentioning

confidence: 93%

Section: Implications For Strategy Researchmentioning

confidence: 99%

Section: Implications For Strategy Researchmentioning

confidence: 99%

Section: Implications For Strategy Researchmentioning

confidence: 99%

See 2 more Smart Citations

The search for hypercompetition: evidence from a Nordic market study

Lindskov

Sund

Dreyer

2020

Industry and Innovation

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“…Since the 1990s, several literature reviews on hypercompetition have been published or presented at a conference (Dagnino et al , 2020; Saadatmand et al , 2018; Turgay and Emeagwali, 2012). Most recently, the study by Dagnino et al (2020) reviews temporary competitive advantages.…”

Section: Introductionmentioning

confidence: 99%

Hypercompetition: a review and agenda for future research

Lindskov

2021

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Purpose The purpose of this study is to review and understand the dimensionality of hypercompetition, factors causing a hypercompetitive environment and the consequences of hypercompetition on markets. Thereby, the purpose of the study is to cover the main contributors in the research field of hypercompetition and explore their findings and different views on hypercompetition. Design/methodology/approach Systematically review 131 conceptual and empirical studies published or presented at a conference in the past 25 years, with the focus on the definitions, causes and consequences (or presumed effects) of hypercompetition. In the paper, I follow the well-known systematic literature review method by Tranfield et al. (2003). Findings The contribution of the study is to advance the knowledge of researchers and managers, in such a way that it becomes easier for them to select relevant variables to measure hypercompetition and identify strategies for gaining temporary competitive advantages in hypercompetitive environments. The construct of hypercompetition required a consolidation of commonalities in the definitions and characteristics used by scholars, to ensure that proper assumptions and variables are being used to measure hypercompetition in future research. Several ways to measure the effects of hypercompetition on firms, industries and individuals have been proposed, but the field still lacks of a clear definition on how to directly measure the construct. Practical implications In this paper, I highlight three managerial implications of hypercompetition as follows: action-based strategy, the determinants of hypercompetition and the importance for managers of accurately establishing their firm’s competitive situation. Originality/value Previous reviews in the area have either focussed on specific components or effects of hypercompetition. The present study collectively takes into consideration the definitions, causes and consequences of hypercompetition on firms, industries and individuals. The contribution of the paper is to indicate future opportunities and challenges within research on hypercompetition.

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