The Impact of Multimarket Competition on Innovation Strategy: Evidence from the Korean Mobile Game Industry

Abstract

Multimarket contact (MMC) refers to the situation in which more than two firms simultaneously compete with each other in multiple products and/or geographical markets. Most studies on MMC have explored how the market overlap creates “mutual forbearance”, which lessens the intensity of rivalry. While prior studies have mainly focused on how reduced rivalry from MMC influences market-related decisions, only a few have paid attention to its impact on innovation activities. The purpose of this research is to explore how multimarket competition influences different stages of innovation. Specifically, we focus on three stages of innovation: Content development, commercialization, and protection of IPs (Intellectual Property). This study is conducted as an exploratory case research based on the in-depth analysis of two leading Korean Mobile game companies. Based on our findings, we explain how mutual forbearance and observability of the rival’s competitive action influence the choice of strategic decisions across different stages of innovation.

Research and innovation and the role of competition in family owned and managed firms

“…Given the extensive work that has been undertaken in previous studies to address the relationship between competition and SME innovation (Aghion et al., 2018 ; Cabanelas et al. , 2019; Lee et al. , 2020), it is surprising this is not more developed in the family firm literature.…”

“…Finally, this study extends the ongoing debate on the innovative behaviour of family firms to an under-explored but noteworthy aspect-the impact of external stimuli via market competition processes. Given the extensive work that has been undertaken in previous studies to address the relationship between competition and SME innovation (Aghion et al, 2018;Cabanelas et al, 2019;Lee et al, 2020), it is surprising this is not more developed in the family firm literature. This study responds to Park et al's (2019) call to complement knowledge gaps at the intersection of the external environment and family business research fields by exploring the role of market competition in inhibiting or facilitating innovative activity in family businesses.…”

Innovative Perspective of Marketing Engagement: Enhancing Users’ Loyalty in Social Media through Blogging

“…Measuring the loyalty level of its customers guides the companies for providing better and exceptional services. If these services are equipped with innovative ideas it may lead toward sustainable growth which ultimately contribute in the innovative ecosystem [30,67]. It was done through users' loyalty and marketing management where marketing engagement was further subdivided into innovative, functional, emotional, and communal engagement.…”

R&D and Industrial Concentration in the Indonesian Manufacturing Industry

“…They found that there was a positive relationship between R&D intensity and industrial concentration in the corn seed market. With respect to a possibility of lower competition caused by the higher industrial competition, the finding from Lee et al [24] might give an insight that the lower competition could affect the choice of decisions for innovation or R&D across different stages of innovation.…”