Abstract

This study proposes and tests a theory of the effects of competition network structure and competitive behavior on customer performance. Competition networks are defined as the patterns of interdependence between rivals that emerge from direct competition. We propose that the size, density and heterogeneity of competition networks influence customer performance in a systemic way. The results show that network size and network density positively affect customer performance, and network heterogeneity has no effect on the customer performance. We also validate the partial mediation role of competitive behavior in the process of competitive network structures affect the customer performance. We test our hypotheses in a unique dataset drawn from the Chinese service industry in Beijing and Shanghai.

Highlights

  • Since the 1980s, the competitive environment has become increasingly prominent dynamic characteristics, as well as the opportunities and challenges brought to the enterprise, has been widely concerned by the academic community

  • The results show that network size and network density positively affect customer performance, and network heterogeneity has no effect on the customer performance

  • We can initially determine that the network size, network density, network heterogeneity, competitive behavior affect enterprise customer performance

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Summary

Introduction

Since the 1980s, the competitive environment has become increasingly prominent dynamic characteristics, as well as the opportunities and challenges brought to the enterprise, has been widely concerned by the academic community The main reason is that the previous researches on the market structure is from a single measure. Under the background of threat, complexity and dynamic of competitive environment, it is difficult to effectively reflect the characteristics of market structure by a single measure. How can we effectively measure the market structure in the “many-to-many competition” pattern of the current inter-enterprises? PI, Sheng-lei (2014) pointed out that the “many-to-many” competitive relationship emphasizes the characteristics of a certain type of enterprise in the competitive behavior level, based on the network embedded or social network perspective to provide a good idea for these studies. From the enterprise level, based on the perspective of the use of SCP framework, we analyze the relationship between enterprise market structure and business performance

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