Incumbent defense strategies and new entrants market exit: the moderating role of relational market-based assets

Aghaie, Sina; Kamran-Disfani, Omid; Javadinia, Amir; Farhang, Maryam; Bhattarai, Ashok

doi:10.1108/ejm-02-2021-0087

Cited by 3 publications

(1 citation statement)

References 91 publications

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“…The literature on market-based assets is fruitful, and recent studies have shown the benefits of incorporating two forms of market assets in business operations, such as customer loyalty (Li et al , 2019), firm performance (Rahman et al , 2022), marketing strategy effectiveness and efficiency (Varadarajan, 2020), innovation performance (Liu and Atuahene-Gima, 2018), profitability (Lin et al , 2020) and defense strategies (Aghaie et al , 2022). However, existing studies have not focused on the role of AI resources on market-based assets and have largely ignored the role of market-based assets on channel power.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

How e-commerce platforms build channel power: the role of AI resources and market-based assets

Deng

Zhang

2023

JBIM

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Purpose Considering the emergence of e-commerce platforms and their integration into marketing channels, this paper aims to investigate how artificial intelligence (AI) resources – both technological and human – possessed by e-commerce platforms can enhance their channel power by acquiring market-based assets (relational and intellectual). Design/methodology/approach Based on resource-based theory and resource orchestration theory, the authors developed a framework tested using survey data gathered from the sellers, which incorporated six key variables: the e-commerce platform’s AI technology resources and human resources, rational and intellectual market-based assets, intraplatform competition and channel power. The analyses are performed using the regression analysis technique. Findings The empirical findings indicate that both technological and human AI resources are crucial in building channel power. In addition, market-based assets serve as a mediator in this relationship, while intraplatform competition moderates the effect of intellectual market-based assets on channel power negatively. Originality/value This study contributes to the existing literature by exploring how e-commerce platforms’ AI resources affect their channel power. The results offer valuable guidance to managers and researchers on optimizing AI resources to improve channel power.

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Section: Theoretical Backgroundmentioning

confidence: 99%

How e-commerce platforms build channel power: the role of AI resources and market-based assets

Deng

Zhang

2023

JBIM

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Credible vs. deceptive threat of market entry: Empirical evidence from the US airline industry

Aghaie,

Noble,

Lourenço

2023

Industrial Marketing Management

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Incumbents’ marketing deterrence strategies and potential entrants’ time-to-entry: evidence from the US airline industry

Aghaie,

Kamran-Disfani,

Darani

et al. 2024

EJM

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Purpose The purpose of this study is to investigate how incumbent firms’ marketing deterrence strategies, price-cuts and quality improvement, influence potential entrants’ (PEs) entry timing into incumbents’ markets and examine the moderating role of incumbents’ market-level resources and capabilities (R&Cs). Design/methodology/approach To test the hypotheses, an accelerated failure time model is applied to a rich data set of entry threats between 1997 and 2019 in the US airline industry. Findings The findings show that while quality improvements delay PEs’ entry, price-cuts expedite it. Furthermore, PEs are more likely to be deterred by price-cuts when incumbents possess high market-level R&Cs. However, such R&Cs do not moderate the link between incumbents’ quality improvement and PEs’ entry timing. Research limitations/implications Market entry in this research is conceptualized and defined as a large resource deployment into a market and operationalized as a binary variable. However, PEs might rather choose a minor resource deployment instead to establish a foothold in new markets. It would be fruitful for future research to examine various levels of participation in a new market and examine how the incumbents’ marketing deterrence strategies affect PEs’ entry timing. Doing so would provide us with a deeper understanding of the difference between actual/full market entry and micro/minor market entry. Practical implications This research examines the impact of incumbents’ marketing deterrence strategies in a contingency framework and highlights the crucial role of R&Cs in implementing such deterrence strategies. Doing so provides actionable insights to managers who craft strategies to protect their markets against PEs. Originality/value Previous research illustrates that incumbent firms commonly respond to competitors’ entry threats by cutting prices and improving quality. While antecedents of these deterrence strategies have been extensively investigated, the consequences have yet to be empirically examined.

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Incumbent defense strategies and new entrants market exit: the moderating role of relational market-based assets

Cited by 3 publications

References 91 publications

How e-commerce platforms build channel power: the role of AI resources and market-based assets

How e-commerce platforms build channel power: the role of AI resources and market-based assets

Credible vs. deceptive threat of market entry: Empirical evidence from the US airline industry

Incumbents’ marketing deterrence strategies and potential entrants’ time-to-entry: evidence from the US airline industry

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