Racing for market share: Hypercompetition and the performance of multiunit multimarket firms

Stan Xiao Li; You-Ta Chuang

doi:10.1016/S0742-3322(01)18012-5

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Advances in Strategic Management

ISSN: 0742-3322
Series editor(s): Professor Brian Silverman

Subject Area: Strategy

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Racing for market share: Hypercompetition and the performance of multiunit multimarket firms

Document Information:
Title:	Racing for market share: Hypercompetition and the performance of multiunit multimarket firms
Author(s):	Stan Xiao Li, You-Ta Chuang
Volume:	18 Editor(s): Joel A.C. Baum, Henrich R. Greve ISBN: 978-0-76230-721-0 eISBN: 978-1-84950-080-7
Citation:	Stan Xiao Li, You-Ta Chuang (2001), Racing for market share: Hypercompetition and the performance of multiunit multimarket firms, in Joel A.C. Baum, Henrich R. Greve (ed.) Multiunit Organization and Multimarket Strategy (Advances in Strategic Management, Volume 18), Emerald Group Publishing Limited, pp.329-355
DOI:	10.1016/S0742-3322(01)18012-5 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Article type:	Full length article
Abstract:	Research linking firms' hypercompetitive strategic actions and performance focuses on firm level performance, and assumes that the impact of each firm's strategic actions affects only a limited number of other firms. We advance a complementary perspective for multiunit-multimarket firms in which the action performance linkage operates at the market-unit level (i.e. within a specific geographic product or service market), and strategic actions within a market-unit are assumed to affect all other firms participating in that market-unit. Supporting the perspective, our analysis of Canadian insurance firms shows that these firms' performance in a marketunit depends on the number and simplicity of their strategic actions in that market unit - both absolutely and vis-d-vis those of others competing in the market unit. Our study offers new insight into how multiunit-multimarket firms compete across a series of market-units - and how they can compete more effectively.