The choice of value‐based strategies under rivalry

Detalhes bibliográficos
Autor(a) principal: Costa, Afonso Almeida
Data de Publicação: 2021
Outros Autores: Zemsky, Peter
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/115891
Resumo: The value‐based perspective emphasizes the importance of both value creation and bargaining for firm performance. While formal theoretical work has focused on value creation strategies, empirical evidence suggests that substantial performance differences also arise from heterogeneity in bargaining. We develop a model where rival firms choose value‐based innovation strategies to enhance either value creation or bargaining capabilities. We show a tendency for homogeneous strategy choices, with coordination on bargaining promoting firm value capture at the expense of overall industry value creation. We identify conditions for strategic heterogeneity, wherein a firm enhancing its bargaining capability risks the sustainability of its competitive advantage. Our model incorporates a natural distinction between incremental and radical value‐creating innovations, which influences the risk‐return tradeoffs faced by firms in their strategies.
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spelling The choice of value‐based strategies under rivalryWhether to enhance value creation or bargaining capabilitiesbargaining capabilitybiform gamesfirm heterogeneitysustainability of competitive advantagevalue-based innovation strategiesThe value‐based perspective emphasizes the importance of both value creation and bargaining for firm performance. While formal theoretical work has focused on value creation strategies, empirical evidence suggests that substantial performance differences also arise from heterogeneity in bargaining. We develop a model where rival firms choose value‐based innovation strategies to enhance either value creation or bargaining capabilities. We show a tendency for homogeneous strategy choices, with coordination on bargaining promoting firm value capture at the expense of overall industry value creation. We identify conditions for strategic heterogeneity, wherein a firm enhancing its bargaining capability risks the sustainability of its competitive advantage. Our model incorporates a natural distinction between incremental and radical value‐creating innovations, which influences the risk‐return tradeoffs faced by firms in their strategies.NOVA School of Business and Economics (NOVA SBE)RUNCosta, Afonso AlmeidaZemsky, Peter2023-05-01T00:31:43Z2021-112021-11-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/115891eng0143-2095PURE: 29297164https://doi.org/10.1002/smj.3282info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T04:58:28Zoai:run.unl.pt:10362/115891Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:42:52.499696Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The choice of value‐based strategies under rivalry
Whether to enhance value creation or bargaining capabilities
title The choice of value‐based strategies under rivalry
spellingShingle The choice of value‐based strategies under rivalry
Costa, Afonso Almeida
bargaining capability
biform games
firm heterogeneity
sustainability of competitive advantage
value-based innovation strategies
title_short The choice of value‐based strategies under rivalry
title_full The choice of value‐based strategies under rivalry
title_fullStr The choice of value‐based strategies under rivalry
title_full_unstemmed The choice of value‐based strategies under rivalry
title_sort The choice of value‐based strategies under rivalry
author Costa, Afonso Almeida
author_facet Costa, Afonso Almeida
Zemsky, Peter
author_role author
author2 Zemsky, Peter
author2_role author
dc.contributor.none.fl_str_mv NOVA School of Business and Economics (NOVA SBE)
RUN
dc.contributor.author.fl_str_mv Costa, Afonso Almeida
Zemsky, Peter
dc.subject.por.fl_str_mv bargaining capability
biform games
firm heterogeneity
sustainability of competitive advantage
value-based innovation strategies
topic bargaining capability
biform games
firm heterogeneity
sustainability of competitive advantage
value-based innovation strategies
description The value‐based perspective emphasizes the importance of both value creation and bargaining for firm performance. While formal theoretical work has focused on value creation strategies, empirical evidence suggests that substantial performance differences also arise from heterogeneity in bargaining. We develop a model where rival firms choose value‐based innovation strategies to enhance either value creation or bargaining capabilities. We show a tendency for homogeneous strategy choices, with coordination on bargaining promoting firm value capture at the expense of overall industry value creation. We identify conditions for strategic heterogeneity, wherein a firm enhancing its bargaining capability risks the sustainability of its competitive advantage. Our model incorporates a natural distinction between incremental and radical value‐creating innovations, which influences the risk‐return tradeoffs faced by firms in their strategies.
publishDate 2021
dc.date.none.fl_str_mv 2021-11
2021-11-01T00:00:00Z
2023-05-01T00:31:43Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10362/115891
url http://hdl.handle.net/10362/115891
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0143-2095
PURE: 29297164
https://doi.org/10.1002/smj.3282
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
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dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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