‘Short Interest Pressure’ and Competitive Behaviour

This study introduces and examines a new-to-strategy form of Wall Street pressure – ‘short interest pressure’ – the tension felt by management caused by short sales of the firm\u27s stock. Drawing from a sample of over 5000 competitive actions carried out by competing firms over a 6-year time period, we test whether the level of short interest pressure experienced by the firm in one time period is predictive of properties of the firm\u27s competitive action repertoire in the ensuing time period. Our findings suggest that when faced with short interest pressure firms tend to carry out a higher number of competitive actions in the following time period, as well as a set of actions that deviate from the industry norm. In addition, post hoc analysis reveals that this effect is amplified for poorly performing firms. Thus, our study contributes to a deeper understanding of the relationship between capital market signals and competitive strategy

Analysis of Competition in the Defense Industrial Base: An F/A-22 Case Study

Consolidation of the defense industrial base has led to concerns about whether enough competition exists between remaining firms to maintain needed cost reduction and innovation. We examine competition in the U.S. defense industrial base by performing an in-depth case study of Lockheed Martin and the F-22 program that considers multiple tiers of the industrial base. We find that defense firm specialization has led to outsourcing practices and arguably a more robust U.S. defense industrial base. Implications for government policy are identified

Leveraging Internal Competency and Managing Environmental Uncertainty: Propensity to Collaborate in International Markets

Purpose – The choice of an international market entry mode involves two critical considerations, leveraging internal competencies and managing environmental uncertainties in host countries. The purpose of the paper is to explicate how these two considerations affect the propensity to collaborate in international markets. Design/methodology/approach – The paper builds on existing theories and develops hypotheses showing relations between competencies and uncertainty and collaboration in international markets. Findings – Conceptual relations show that the goals of leveraging competencies and managing environmental uncertainty in host countries have varying effects on the level of international collaboration. Originality/value – The effects are shown through the integration of different theories and empirical findings. Furthermore, the significance of collaboration in international market entry decisions is established. Directions for future research are also provided

Towards 2000: A Tougher Future for Australian Business?

The paper reports on the future business environment expected by top level Australian executives. It forecasts environmental changes to the year 2000 and updates projections reported in an earlier study. Specifically, top managers from 171 of Australia\u27s largest 500 corporations provide their views concerning world ecology, the economy, technology and political-social developments. Their perceptions are then linked to specific competitive strategies that are evoked by the long-range forecast which they expect

\u3ci\u3eAmEx\u3c/i\u3e and Post-Cartesian Antitrust

I. Introduction II. Situating American Express ... A. Different Sides of the American Express Opinion ... 1. Two-Sided Markets ... 2. The American Express Opinion ... B. The Real Issue Is Messy, Not Two-Sided, Markets … C. The Many Messes of Modern Markets III. Competition in Messy Markets ... A. Simple Competition in Simple Markets ... B. More Complex Competition in Messier Markets ... C. American Express: The Competition Is in the Pudding IV. The Many Sides of AmEx’s Rightness ... A. A Burden Best Born by Plaintiffs ... B. Economic Theory as a Question of Law or of Fact? V. Conclusio

Can Brazilian Firms Survive the Chinese Challenge: Effects of Globalization on Markets, Strategies, and Performance

Purpose – The purpose of this paper is to apply the structure-conduct-performance theory and the strategic fit concept to examine the effects of globalization on markets, strategies, and performance of business-to-consumer firms in Brazil. Design/methodology/approach – The paper takes a qualitative approach to answer the research questions. Top decision makers such as president, chief executive officer, chairman of the board, vice president, and director of the companies were interviewed. The elite approach to in-depth interviewing was followed to obtain reliable information from the decision makers. Findings – Findings indicate that globalization and especially the entry of Chinese firms significantly changed market contexts in Brazil. Brazilian executives responded to changes in market contexts by shifting from production to customer orientation, building brand equity, developing new products, and differentiating offerings. Overall, marketing performance of Brazilian firms was positive, but profitability suffered. Originality/value – The study contributes to the literature by showing that globalization has changed market contexts in Brazil by developing a new form of competition in which firms from emerging economies are now competing against each other. Findings from this study can provide useful theoretical and strategic insights into the behavior and performance of firms in other emerging markets

The evolution of organizational niches : U.S. automobile manufacturers, 1885-1981.

Although the niche figures prominently in contemporary theories of organization, analysts often fail to tie micro processes within the niche to long-term changes in the broader environment. In this paper, we advance arguments about the relationship between an organization's niche and evolution in the structure of its organizational population over time. We focus on the technological niche and processes of positioning and crowding among firms in the niche space, relating them to the level of concentration among all firms in the market. Building on previous empirical studies in organizational ecology, we study the evolution of concentration in the American automobile industry from 1885 to 1981 and estimate models of the hazard of exit of individual producers from the market. The findings show that niche and concentration interact in complex ways, yielding a more unified depiction of organizational evolution than typically described or reported

Internationalization strategies of companies in the wine industry in Portugal – context, forms of action and performance.

This research project aims to analyze the competitive environment of companies in the wine sector in Portugal and assess the implications in the development of contingent strategic guidelines and different performances.Proposes to apply the methodological framework the IKST – Integrated Key for Strategic Thought for international expansion. The research was carried out at two levels: at a preliminary level – a general characterisation was made of the companies as to their resources, and at a central level – the examination of the strategic aspect of the companies was carried out. The research involved the collection of primary data (survey of 164 companies in the sector) and secondary data (from documentary nature). Explores the strategic aspect, analyzing the sector in terms of global and national context, in order to design a diagnostic context of action, using the models of PEST and 5 Forces. Identifies, based on various statistical techniques, the adopted style of strategic thought and the profile in terms of contextual variables, as well as the underlying economic performance