An IPO's Impact on Rival Firms

2014 ◽  
Author(s):  
Matthew I. Spiegel ◽  
Heather Tookes
Keyword(s):  
Rival Firms

Will rivals enter or wait outside when faced with litigation risk? Patent litigation in complex product industries and international market entry

2021 ◽  
pp. 147612702199825
Author(s):  
Ergun Onoz ◽  
Claudio Giachetti
Keyword(s):  
Market Entry ◽  
International Market ◽  
Joint Effect ◽  
Litigation Risk ◽  
Patent Litigation ◽  
Complex Product ◽  
Patent Strategy ◽  
Negative Effect ◽  
Rival Firms ◽  
The Relationship

A spiral of patent infringement litigation among rival firms is a phenomenon often observed in complex product industries, where products comprise numerous separately patentable elements. Theoretically grounded in the awareness–motivation–capability framework of competitive dynamics, this article contributes to the literature on patent strategy and international market entry by looking at how, in a complex product industry, the intensity of patent litigation in a country affects a firm’s decision to enter that country. Our results show that the intensity of patent litigation in a country is a deterrent for potential entrants and has a negative effect on a firm’s likelihood of entering that country. We also show that a firm’s previous experience with patent litigation ( awareness component), the share of a firm’s current patent applications in a target country ( motivation component), and the size of a firm’s patent stock ( capability component) moderate the relationship between a country’s patent litigation intensity and a firm’s likelihood of entering that country. We thus shed light on the joint effect of macro- and micro-level patent-related variables on a firm’s market entry decisions. We test our hypotheses with a comprehensive panel of patenting and entry strategies of 84 mobile phone vendors and their patent litigation battles in 45 countries, from 2003 to 2015.

Strategic delegation, quality competition, and new product profitability

2015 ◽  
Vol 53 (3) ◽  
pp. 713-729 ◽  
Author(s):  
Hyun Shin ◽  
Jongtae Shin ◽  
Shijin Yoo ◽  
Joon Song ◽  
Alex Kim
Keyword(s):  
New Products ◽  
New Product ◽  
Quality Competition ◽  
Strategic Delegation ◽  
Content Type ◽  
Financial Outcomes ◽  
Rival Firms ◽  
New Perspective ◽  
Duopolistic Market ◽  
Low Sensitivity

Purpose – The purpose of this paper is to present a new perspective on the marketing-R & D interface by modelling firms that develop new products in a duopolistic market. Design/methodology/approach – By using a game-theoretic modelling approach, this study examines strategic delegation, through which the marketing and R & D managers of each firm are given authority over pricing and new products’ quality levels. Findings – Interestingly, the study finds that the case where two managers with conflicting incentives negotiate (the horizontal coordination case) might produce a better financial outcome than when the managers’ decisions are perfectly coordinated by a profit-maximizing CEO (the vertical control case). In addition, the study identifies several conditions that guarantee horizontal coordination’s generation of higher profit, such as high (or low) sensitivity to the quality (or price) of a new product. The paper further shows that two competing firms may select horizontal coordination as a Nash equilibrium. Practical implications – These findings provide new insights into the role of marketing-R & D interaction under strategic delegation, which may allow rival firms to “spend smart” on R & D, avoid excessive (and unnecessary) quality competition, and thus enhance the profitability of new products. Such insights would be useful for any firms under budget constraints. Originality/value – To the authors’ knowledge, this paper represents the first attempt to analyze how delegation interacts with the conflicting incentives of marketing and R & D managers, which in turn affects the quality investment decisions, competitive intensity, and, ultimately, the financial outcomes of new products developed competing firms.

scholarly journals Peran Faktor Internal Dan Faktor Eksternal Pada Keberlangsungan Start-Up Bisnis Kota Surabaya

2016 ◽  
Vol 9 (1) ◽  
Author(s):  
Fransisca Desiana Pranata Sari ◽  
Sri Nathasya Br Sitepu
Keyword(s):  
Human Resources ◽  
Bargaining Power ◽  
External Factors ◽  
Barriers To Entry ◽  
Internal Factors ◽  
Start Up ◽  
Essential Components ◽  
Substitute Products ◽  
Rival Firms ◽  
Internal And External Factors

Business Competition encourages entrepreneurs to have competence in managing the business. Start-up businesses will grow if it is able to manage the internal factors and external factors well. This study focuses on internal factors from the perspective of companies consisting of four components, namely marketing, human resources, finance, and operations. The second focus of this study is the external factor of a business seen from the approach five forces Porter lists five essential components of the external factors, namely: barriers to entry in the industry, threat from substitute products, threat from suppliers bargaining power, threat from buyers bargaining power, Among existing industry and rival firms. The object of this study is a start-up business in the city of Surabaya. This study used descriptive qualitative method with the aim of optimizing the management view of internal and external factors in the success of a start-up business seen from the perspective of the company. Validation of the results using triangulation techniques using: parisipatif observation, interview, and documentation (photos and interviews) to the informant (object) research. The results showed the management of internal factors (marketing, human resources, finance, and operational) and external (barriers to entry in the industry, threat from substitute products, threat from suppliers bargaining power, threat from buyers bargaining power, and rival Among existing industry firms ) is an important component that must be optimized in order to support the success of start-up businesses.

Social Influence and Human Interaction with Technology

2010 ◽  
pp. 1-20
Author(s):  
Robert S. Friedman ◽  
Desiree M. Roberts ◽  
Jonathan D. Linton
Keyword(s):  
Communication Networks ◽  
Internal Communication ◽  
Human Interaction ◽  
Sources Of Information ◽  
External Sources ◽  
Internal Information ◽  
Rival Firms ◽  
Successful Innovation ◽  
Share Information

This chapter discusses how information that supports innovation flows throughout an organization, the construction and effects of team composition, the innovative processes that teams employ, and the development, implementation, and evaluation of systems used to manage the flow and distribution of information. As Allen and Cohen (1969) point out, effective communicators rise in their organizations as a result of their willingness to engage information—by reading and conversing outside of their immediate settings, but as Tushman (1977) explains, that kind of outreach precipitates special boundary roles, which come about to satisfy an organization’s communication network’s role of bridging an internal information network to external sources of information. Thompson (1965) investigates the conditions necessary to move an organization from a single-minded focus on productivity to one of those that facilitate innovation. At times, that means engaging rival firms, and von Hippel (1987) demonstrates that information sharing is economically beneficial to the organizations doing the trading. Freeman’s (1991) finding that information regarding innovative processes entails the development of effective information networks confirms how important it is for successful innovation that there exist effective external and internal communication networks, and that individuals collaborate to share information. von Hippel (1994) returns later in the chapter to qualify this point by showing that there is a direct correlation between the level of stickiness and the expense related to moving that information to a location where it can be applied to solving a problem.

Open Innovation with Chinese Characteristics

2019 ◽  
pp. 152-166
Author(s):  
Henry Chesbrough
Keyword(s):  
Open Innovation ◽  
High Speed ◽  
Decisive Role ◽  
High Speed Rail ◽  
Foreign Companies ◽  
Leading Role ◽  
Chinese Characteristics ◽  
World Class ◽  
Rival Firms

Open Innovation in China is greatly affected by the powerful role of the Chinese Communist Party. Xi Jinping thought introduces a tension between the ‘decisive role of the markets’ to allocate resources and stimulate innovation across the economy and ‘the leading role of the Party’ to guide the development of innovation in the most important industries. This tension plays out differently in different industries in China. In high-speed rail, the tension has been adroitly managed, creating an organization with world class innovation capabilities that is a peer with the best of the rival firms in the world. In automotive and semiconductors, however, the tension has been more problematic. The state-owned enterprises are well aligned with the Party, while it is the privately owned companies and foreign companies that are driving innovation.

scholarly journals Bundling and joint marketing by rival firms

2017 ◽  
Vol 26 (3) ◽  
pp. 571-589 ◽  
Author(s):  
Thomas D. Jeitschko ◽  
Yeonjei Jung ◽  
Jaesoo Kim
Keyword(s):  
Rival Firms

Institutional Quality Differences and The Performance Effect Of M&As on Rival firms

2018 ◽  
Vol 2018 (1) ◽  
pp. 14053
Author(s):  
Dimitrija Kalanoski ◽  
Michele Pinelli ◽  
Francesco Cappa
Keyword(s):  
Institutional Quality ◽  
Performance Effect ◽  
Rival Firms

scholarly journals Green Innovation and Competition: R&D Incentives in a Circular Economy

Games ◽  
2021 ◽  
Vol 12 (3) ◽  
pp. 68
Author(s):  
Giovanna Bimonte ◽  
Maria Grazia Romano ◽  
Maria Russolillo
Keyword(s):  
Circular Economy ◽  
Product Market ◽  
Production Costs ◽  
Cournot Model ◽  
Green Innovation ◽  
Innovation Project ◽  
Rival Firms ◽  
The Impact ◽  
D Investment ◽  
Disposal Cost

The present paper provides theoretical insights regarding the determinants of firms’ incentives to invest in a Circular Economy. The analysis relies on a Cournot model disaggregating the disposal cost in the production function. In a non-simultaneous sequential game, two risk-neutral firms are endowed with a green innovation project that, if successful, would reduce the overall production costs and implement a Circular Economy. Firms are plagued by asymmetric information about the exact value of the other firm’s innovation. In this setting, the R&D investment in a Circular Economy, by affecting the distribution of production and disposal costs, influences the production decisions of both the innovating and the rival firms. The sign of the impact depends on the firms’ strategy in the product market. Furthermore, the analysis points out that cooperation in R&D of firms competing in the product market reinforces incentives to invest in green innovation. This suggests that governments aimed to advance a Circular Economy should encourage firms’ cooperation.

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