The Power of Words: Word Responses in Multimarket Competition

Gao, He; Yu, Tieying; Woo, Hyun-Soo; Cannella, Albert A.

doi:10.5465/ambpp.2021.12775abstract

Cited by 2 publications

(1 citation statement)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…There is strong support in the multimarket competition (MMC) literature for the mutual forbearance hypothesis (MFH), asserting that the intensity of rivalry will be blunted when firms compete in multiple markets (Gao et al, 2021). Several studies have demonstrated that MMC leads to lower levels of rivalry (Chen, 1996; Haveman & Nonnemaker, 2000; Kang et al, 2010; Karnani & Wernerfelt, 1985, Korn & Baum, 1999; Li & Greenwood, 2004), with the anticipated future interaction promoting cooperation among the firms (Van Reeven & Pennings, 2016).…”

Section: Introductionmentioning

confidence: 99%

Boundary conditions of the mutual forbearance hypothesis: Impact of technology evolution on multimarket competition

Roy

Sarkar

2022

Manage Decis Econ

View full text Add to dashboard Cite

Our study explores the intricate relationships between technology evolution and innovation, informing the mutual forbearance hypothesis. We propose that in high technology industries, the hypothesis is governed by the stage of technology evolution and is not deterministic. We show how mutual forbearance increases progressively as technology evolves from the emergence phase to the maturity phase. Then, based on a convenient sample of firms from the disk drive industry between 1991 and 1995, an era of ferment prior to the establishment of the dominant design, we examine our hypothesis and find support for mutual forbearance in the mature phase of the technology lifecycle.

show abstract