How Do Rival Firms Respond to Consolidation? Evidence from Airline Mergers

2022 ◽  
Author(s):  
Qingxin He ◽  
Nicholas G. Rupp
Keyword(s):  
Rival Firms ◽  
Airline Mergers

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.

An IPO's Impact on Rival Firms

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

Cathay & Southwest: flying the flag of good practice in airline mergers

2015 ◽  
Vol 31 (8) ◽  
pp. 20-22 ◽  
Author(s):  
Reetesh Sharma ◽  
Mark Thomas
Keyword(s):  
Airline Industry ◽  
Large Scale ◽  
Good Practice ◽  
Aviation Industry ◽  
Content Type ◽  
Key Stakeholders ◽  
The Usa ◽  
Airline Mergers ◽  
Southwest Airlines

Purpose – This article highlights the essential factors to be considered for successful mergers and acquisitions (M & As) in the aviation industry. The article draws insights from the successful deals between Morris and Southwest Airlines as well as Cathay Pacific and Dragonair. Design/methodology/approach – The article is a case study of two successful mergers in the airline industry, one in the USA and one in Asia. Findings – M & As in the airline industry are loaded with difficulties. These include problems of brand identification, opposition from key stakeholders and the need of forming one coherent organisational culture. However, this does not mean that they are impossible. Two large-scale mergers have shown that successful mergers can occur in the industry. Originality/value – This article gives examples of two successful M & A deals from the aviation industry and shows the important factors to achieve this.

Sign in / Sign up

Export Citation Format

Share Document