Competitive Dynamics Research Articles

In the light of dynamic competition: should we make merger remedies more flexible?

ABSTRACT Mergers and acquisitions shape industry competition. Effective merger remedies are important for market efficiency and consumer welfare. This paper explores the need for more flexible remedies to address changing markets after mergers. While the EU permits some flexibility with less restrictive remedies, we conceptually advance the design elements of a dual-phase, bifurcated merger control system. This system integrates ex-ante processes with more systematic and comprehensive ex-post measures. Such an approach can address the shortcomings of the current system and, consequently, holds the potential to enhance merger control in dynamic markets.

Fintech and Regtech as Tools of Financial Digitalization and the Regulatory Framework in Achieving Sustainable Development Insights from Albania

Objectives: This study endeavors to scrutinize the development of e-banking services, which represent the most recognized and utilized form of digital finance in the nation with respect to the attainment of Sustainable Development Goal 9 (SDG9). Method: This research employed an online survey in conjunction with a SWOT analysis to assess the strengths, weaknesses, opportunities, and threats related to FinTech and RegTech within Albania. Results: The key finding derived from the questionnaire suggests that the predominant form of smart technology recognized and utilized by Albanian consumers is e-banking. The SWOT analysis delineates the evident strengths of FinTech, including near instantaneous and efficient transactions, minimal transaction fees, and continuous access to checking accounts. However, the study found that consumers possess limited familiarity with FinTech services and RegTech. Research implications: The study highlights the imperative for Albania to adopt an activity-based regulatory approach that applies consistent rules regardless of the legal status of the entity or the level of technology employed. Specifically, it is essential to formulate a regulatory structure that facilitates the entry of new market participants, thereby enhancing competitive dynamics in the market and modernizing the delivery of traditional financial services. Originality/Value: This research contributes to the ongoing discourse regarding the advancement of FinTech and RegTech in developing nations and provides salient recommendations for policymakers, regulators, and financial institutions in leveraging digital technologies within an emerging market context such as Albania.

The Role of Industry Concentration on Competitive Inventory-Management Behaviors: Evidence from U.S. Manufacturers

This research study investigates the potential effect of industry concentration on the rivalrous moves and counter moves made between leader and challenger firms relative to inventory management decisions. Theoretically, “the perennial gale of creative destruction” proposed by Schumpeter (1934) enables an examination of the competitive dynamics between firms. Mimetic isomorphism (as embedded within institutional theory, per DiMaggio & Powell (1983)) and signaling theory (Porter, 1980) have likewise been applied here to the presumed actions and reactions of firms relative to management and operational decisions. For their part, Ferrier, Smith & Grimm (1999)—in leveraging earlier research from Young, Smith & Grimm (1996)—offer evidence to indicate that higher industry concentrations may result in fewer rivalrous moves. In such concentrated environments, the dynamism of competitive rivalries may be lessened, thereby suppressing otherwise potentially aggressive moves and counter moves relative to inventory and other operational decisions.

Beyond profit: Exploring CEO tenure, social value risk‐taking, and competitive dynamics in savings banks

Beyond profit: Exploring <scp>CEO</scp> tenure, social value risk‐taking, and competitive dynamics in savings banks

Holistic Competitive Strategy: Embracing a Holistic Approach to Establishing a Competitive Edge

Abstract This study examines the integration of Porter’s Five Forces, the Resource-Based View (RBV), and Dynamic Capabilities frameworks as a comprehensive approach for establishing and maintaining competitive advantage in today’s complex business environment. The paper presents real-world examples, including Amazon and Tesla, to demonstrate the practical application and potential challenges of implementing these integrated strategies. These case studies illustrate how successful companies leverage a multifaceted understanding of their competitive landscape, internal strengths, and resource capabilities to outperform rivals and adapt to changing market conditions. By synthesizing these three frameworks, organizations can develop a more nuanced and holistic view of their strategic position. Porter’s Five Forces provides insight into industry structure and competitive dynamics, while the RBV focuses on identifying and leveraging unique internal resources. The Dynamic Capabilities perspective adds a crucial temporal dimension, emphasizing the importance of adapting and reconfiguring resources in response to environmental changes. This integrated approach enables companies to establish and sustain their competitive advantage over time, leading to long-term organizational success. The study further explores the implications of this integrated framework for overcoming resistance to strategic changes within organizations. By providing a comprehensive understanding of external and internal factors influencing competitiveness, this approach can facilitate more effective strategic decision-making and implementation, ultimately contributing to long-term organizational success in a dynamic business.

Carcass Density, Size and Visibility Do Not Significantly Differ Between Areas With and Without Spotted‐Hyaenas (Crocuta crocuta), With Implications for Threatened Vultures

ABSTRACTChanges in predator guild composition can affect obligate scavengers through facilitation and competition dynamics. In Namibia, declines of spotted‐hyaenas (Crocuta crocuta) may influence threatened vultures, either positively, via provisioning carcasses, or negatively, as dominant scavengers competing for carcasses. To examine potential mechanisms of influence of spotted‐hyaenas on vultures, we compared carcass densities, carcass size (live weight estimated by species, age class and sex), and potential visibility of carcasses to vultures between sites with and without spotted‐hyaenas across Namibia. We sampled thirteen private protected areas (PPAs), six with spotted‐hyaenas present and seven where they were absent. Carcass densities were estimated for each PPA using line‐transect sampling, recording a total of fifty‐four carcasses. There were no significant differences in carcass density, carcass size or carcass distance to cover, as a proxy for visibility, between areas with and without spotted‐hyaenas. These results do not indicate mechanisms of either strong facilitation or strong competition with vultures, suggesting that spotted‐hyaena activity on these Namibian reserves is not detrimental to vultures, but equally may not result in increased carcass availability.

Synchronization transitions in adaptive simplicial complexes with cooperative and competitive dynamics.

Adaptive network is a powerful presentation to describe different real-world phenomena. However, current models often neglect higher-order interactions (beyond pairwise interactions) and diverse adaptation types (cooperative and competitive) commonly observed in systems such as the human brain and social networks. This work addresses this gap by incorporating these factors into a model that explores their impact on collective properties such as synchronization. Through simplified network representations, we investigate how the simultaneous presence of cooperative and competitive adaptations influences phase transitions. Our findings reveal a transition from first-order to second-order synchronization as the strength of higher-order interactions increases under competitive adaptation. We also demonstrate the possibility of synchronization even without pairwise interactions, provided there is strong enough higher-order coupling. When only competitive adaptations are present, the system exhibits second-order-like phase transitions and clustering. Conversely, with a combination of cooperative and competitive adaptations, the system undergoes a first-order-like phase transition, characterized by a sharp transition to the synchronized state without reverting to an incoherent state during backward transitions. The specific nature of these second-order-like transitions varies depending on the coupling strengths and mean degrees. With our model, we can control not only when the system synchronizes but also the way the system goes to synchronization.

Molecular investigation of harmful cyanobacteria reveals hidden risks and niche partitioning in Kenyan Lakes

Despite the global expansion of cyanobacterial harmful algal blooms (cHABs), research is biased to temperate systems within the global north, such as the Laurentian Great Lakes. This lack of diversity represents a significant gap in the field and jeopardizes the health of those who reside along at-risk watersheds in the global south. The African Great Lake, Lake Victoria, is understudied despite serving as the second largest lake by surface area and demonstrating year-round cHABs. Here, we address this knowledge gap by performing a molecular survey of cHAB communities in three anthropogenically and ecologically important freshwater systems of Victoria's Kenyan watershed: Winam Gulf (Lake Victoria), Lake Simbi and Lake Naivasha. We identified a bloom of non-toxic Dolichospermum and toxic Microcystis in the Winam Gulf, with data suggesting sulfur limitation shapes competition dynamics between these two bloom-formers. Though we did not detect a bloom in Naivasha, it contained the largest diversity of cHAB genera amongst the three lakes. In turn, our results indicated methane metabolism may allow non-toxic picoplankton to outcompete cHAB genera, while suggesting Synechococcus spp. serves as a methane source and sink in this system. Lake Simbi exhibited a non-toxic Limnospira bloom at the time of sampling with very low abundances of cHAB genera present. Subsequently, these results were employed to design a cHAB screening and risk assessment framework for local stakeholders. Cumulatively, this work serves to increase cHAB research efforts on the international scale while serving as an impetus for cHAB monitoring on the local scale.

Linking selection to demography in experimental evolution of active death in a unicellular organism.

Deciphering how natural selection emerges from demographic differences among genotypes, and reciprocally how evolution affects population dynamics, is key to understanding population responses to environmental stress. This is especially true in non-trivial ecological scenarios, such as programmed cell death (PCD) in unicellular organisms, which can lead to massive population decline in response to stress. To understand how selection may operate on this trait, we exposed monocultures and mixtures of two closely related strains of the microalga Dunalliela salina, one of which induces PCD, to multiple cycles of hyper-osmotic shocks, and tracked demography and selection throughout. Population dynamics were consistent between mixtures and monocultures, suggesting that selection on PCD does not involve strong ecological interactions. The PCD-inducing strain was maintained throughout the experiment despite an initial decline, by a combination of fast population rebound following each decline, and density-dependent competition dynamics near the stationary phase that were independent of these initial population fluctuations. As a result of PCD maintenance, population decline in response to environmental stress was not counter-selected in our experiment, but persisted over 13 cycles of salinity. Our results highlight how analysing the demographic underpinnings of fitness and competition can shed light on the mechanisms underlying selection and eco-evolutionary dynamics.

Digital transformation strategies in the financial services sector

The main objective of this research is to conduct a thorough analysis of the digital transformation tactics employed in the specific subsector of the financial services industry that has been selected for study. The objective of this study is to provide a comprehensive analysis of the distinct problems, opportunities, and repercussions that are linked to the process of digital transformation within this particular subsector. Through this endeavor, this research provides a valuable contribution to the existing body of knowledge in this particular domain, thereby enabling industry leaders, policymakers, and other relevant stakeholders to make more well-informed decisions., a mixed-methods research design was used in this study. This technique integrates qualitative and quantitative methodologies to offer a holistic comprehension of digital transformation initiatives within a specific subsector of the financial services industry. The results of this research underscore the significance of digital transformation initiatives in improving consumer experiences, meeting regulatory requirements, and capitalizing on technical progress. The obstacles that have been identified, such as the need to comply with regulations and address cybersecurity issues, highlight the intricate environment that financial institutions must navigate. Furthermore, the acknowledgment of customer-centric approaches and the significance of data analytics and personalization validate the industry's ability to adjust to client preferences and competitive dynamics.

Cara Wirausaha Muda Menghadapi Tantangan di Era Digital

Rapid developments in the digital era offer vast opportunities for young entrepreneurs, while also bringing complex challenges. Technological advances have opened up opportunities for wider access to information and markets. However, the challenges of fierce competition and changing technological dynamics are the main obstacles that need to be overcome. Young entrepreneurs must have the ability to adapt to the latest technological developments, such as digital marketing and artificial intelligence, while understanding how consumption patterns are changing with greater emphasis on convenience and personalization. However, overcoming dependence on digital platforms and resource limitations need to be overcome. In overcoming this situation, young entrepreneurs need to use technology to increase efficiency, be creative in creating new products and services, as well as expand networks and collaborate strategically. By managing finances wisely and being able to adapt to changes, it is hoped that young entrepreneurs can continue to exist and grow, and achieve success in an ever-changing global market, Young entrepreneurs in the digital age face big challenges along with advances in technology and changes in consumer behavior. However, with the right strategy, these obstacles can be turned into opportunities for growth and success. Utilizing technology, product innovation and digital marketing can increase efficiency, reach a wider market and increase profits. The ability to overcome digital challenges well opens up opportunities for young entrepreneurs to dominate the market, improve business reputation and achieve long-term growth. Adapting to change quickly will increase competitiveness and support sustainable growth.

Optimizing Mutual Fund Selection with Fuzzy Logic: A Case Study of Nasdaq Exchange

This study examines mutual fund performance through advanced methodologies, emphasizing fuzzy logic and the Fuzzy Sharpe Ratio. A thorough literature review highlights recent developments, such as the integration of machine learning techniques with fuzzy logic models. The research utilizes data from the Bombay Stock Exchange spanning January 1, 2024, to October 31, 2024, applying the Fuzzy Risk-Adjusted Return method. Moreover, an analysis of major technology companies reveals Alphabet Inc as the top-ranked firm, demonstrating its robust performance metrics and establishing it as a premier investment choice. Conversely, Tesla Inc ranked lowest, reflecting comparatively weaker performance. These results illustrate the competitive dynamics and varied performance levels among leading tech companies, influenced by market strategy, innovation, and financial stability. This analysis underscores the value of fuzzy logic in enhancing mutual fund evaluations and positions Alphabet Inc as a strong candidate for investor consideration.

Exploring the Influence of a Competitive Environment and Marketing Trends on Sports Coaches’ Attitudes Towards Advertising

Abstract This study examines how commercialization and a competitive environment (CE) in sports have reshaped the role of coaches, positioning them as both athletic leaders and key influencers in marketing trends (MT) and strategies. By exploring coaches’ attitudes toward advertising (ATA), it highlights the significance of communication theory in understanding the evolving dynamics of sports marketing. Employing a quantitative survey methodology and structural equation modeling (SEM) analysis, the study investigates the complex interplay among these variables. The findings reveal significant associations between the competitive environment and coaches’ attitudes toward advertising, underscoring the importance of strategic marketing initiatives in response to competitive dynamics. Moreover, a substantial correlation is observed between marketing trends and coaches’ attitudes toward advertising, emphasizing the need for sports organizations to adapt their marketing strategies to align with current market dynamics. Additionally, the research highlights the multifaceted nature of factors influencing coaches’ attitudes toward advertising, including ethical beliefs, adherence to rules, and personal utility. These findings offer valuable insights for developing more effective advertising and marketing strategies tailored to the unique context of sports coaching, contributing to the advancement of marketing practices within the sports industry.

Global Dominance and Local Innovation: Exploring Non-linear Ties in India’s Pharma Sector

Most studies highlight an ambiguous link between competitive dynamics and innovation in India, an exciting observation reflecting the issue’s complexity. This study explores the non-linear nexus between competition and innovation by considering foreign and domestic competition separately in Indian domestic pharmaceutical firms for 2000–2019. The Herfindahl–Hirschman index of market concentration is used to measure competitiveness, whereas R&amp;D expenditure is used to measure innovation. The findings of this study indicate a U-shaped relationship between R&amp;D and foreign market concentration. However, for neck-and-neck firms, this U-shaped relationship is presented by domestic concentration. This study suggests the significance of adopting a holistic approach to competition and investment promotion policies prioritizing innovation, collaboration and balanced competition in the Indian pharmaceutical industry.

A spatiotemporal model for the effects of toxicants on the competitive dynamics of aquatic species

In this paper, we develop a reaction–diffusion model with negative toxicant–taxis that incorporates spatiotemporally inhomogeneous toxicant input to investigate the impact of toxicants on the competitive dynamics of two species in a polluted aquatic environment. Here the negative toxicant–taxis models the evasive movement of avoiding toxicants by species. We establish the global well-posedness of the model, analyze the existence and stability of spatially homogeneous steady states, and derive sufficient conditions for species extinction and coexistence. Through linear stability analysis, we identify sufficient conditions on model parameters that destabilize spatially homogeneous steady states under spatiotemporally uniform toxicant input. Numerical experiments reveal the influence of key toxicant-related factors (input rate, taxis intensity, and diffusivity) on competition outcomes and species distributions. Notably, strong negative toxicant–taxis can induce spatial aggregation and segregation patterns between the species and the toxicant under uniform toxicant input. Our findings suggest that toxicant–taxis may promote population persistence and coexistence, particularly when the toxicant input is not uniform in space and time and the toxicant does not diffuse fast (i.e. weak diffusivity). However, strong toxicant diffusion can diminish the impact of taxis, adversely affecting population persistence and species coexistence.

Concentrating intelligence: scaling and market structure in artificial intelligence

Abstract This paper examines the evolving structure and competition dynamics of the rapidly growing market for AI foundation models, with a special focus on large language models (LLMs). We describe the technological characteristics that shape the AI industry and have given rise to fierce competition among the leading players. The paper analyzes the cost structure of foundation models, emphasizing the importance of key inputs such as computational resources, data, and talent, and identifies significant economies of scale and scope that may create a tendency towards greater market concentration and natural monopolies in the future. We explore two additional concerns for competition, the risk of market tipping and the implications of vertical integration, and we analyze policy remedies that may contribute to maintaining a competitive landscape. Looking ahead to increasingly transformative AI systems, we discuss how market concentration could translate into unprecedented accumulation of power, highlighting the broader societal stakes of competition policy.

Artificial Intelligence and Strategic Decision-Making: Evidence from Entrepreneurs and Investors

This paper explores how artificial intelligence (AI) may impact the strategic decision-making (SDM) process in firms. We illustrate how AI could augment existing SDM tools and provide empirical evidence from a leading accelerator program and a start-up competition that current large language models can generate and evaluate strategies at a level comparable to entrepreneurs and investors. We then examine implications for the key cognitive processes underlying SDM—search, representation, and aggregation. Our analysis suggests that AI has the potential to enhance the speed, quality, and scale of strategic analysis, while also enabling new approaches, like virtual strategy simulations. However, the ultimate impact on firm performance will depend on competitive dynamics as AI capabilities progress. We propose a framework connecting AI use in SDM to firm outcomes and discuss how AI may reshape sources of competitive advantage. We conclude by considering how AI could both support and challenge core tenets of the theory-based view of strategy. Overall, our work maps out an emerging research frontier at the intersection of AI and strategy. History: This paper has been accepted for the Strategy Science Special Issue on Theory-Based View. Funding: The authors are grateful to their collaborating organizations and to the University of Michigan, Bocconi University Junior Researchers’ Grant, and the INSEAD eLab Research Fund for financial support.

Counter-Activism Against Ideological Opponents: Evidence Based on the Competitive Dynamics of Corporate Engagement in Advocacy Giving

A growing body of literature has sought to understand the strategic drivers of corporate activism, emphasizing the ideological composition of a firm’s workforce as its salient internal driver. Despite these advancements, however, the heterogeneity in its effect remains underexplored, leaving it unclear when employee ideology is more likely to translate into activism. I address this gap by considering competitors’ actions—another important driver uncovered in the scholarship—as a key source of heterogeneity. I examine how these actions can shape the external context in which a firm’s employees evaluate the value of its activism, thereby influencing the firm’s incentives to act on employees’ preferences. My central conjecture is that activism by so-called ideological opponents of a firm’s employee base will be a particularly strong driver of its own activism. This is because actions taken by competitors who hold stances opposite to those valued by a firm’s employees can create a temporal window during which the firm can gain enough employee appreciation for its activism—particularly counter-activism opposing the stance of the competitor. Leveraging the donation records of corporate foundations to advocacy nonprofits as a novel channel for studying corporate activism, I find support for this conjecture. Consistent with my theory, I further find that this effect is driven by firms whose employees hold homogeneous ideological preferences and arises primarily around issues with strong ideological contention. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2023.17382 .

Economic Analysis, Yield Optimization, and Competition Dynamics of Groundnut/Cereal Fodder Intercropping Systems in Pakistan's Semi Arid Tropics

This research focuses on the intercropping management options including aspects of yield performance, nitrogen contribution to groundnut and economical considerations through the usage of intercrop Maize, Sorghum and Pearl Millet under varying cuttings treatments. Intercropping is effective in increasing land productivity and efficiency in nutrient use and provides economic returns yet the best combinations have not been well explored. Randomised complete block design was used to assess the growth characteristics of plant height, modulation and nitrogen in sole cropping and intercropping treatments in which they make cuts. For sole crop, both, maize and pearl millet produced the highest green fodder yields of 13.40 t ha⁻¹ and 19.10 t ha⁻¹, respectively, and intercropping reduced the productivity for both crops but it was statistically significant, yield recorded in Maize (one cut) groundnut = 3.10 t ha⁻¹. Both nodulation and nitrogen content were maximum in sole groundnut, but they were lower when groundnut was grown in association with other crops. Among all competitive indices, the LER was the highest on maize (LER=1.72), pearl millet and sorghum indicated that intercropping enhances land use efficiency. This was facilitated by the Monetary Advantage Index (MAI) that provided much support to maize-groundnut intercrop, which was easily identified as the most appropriate option for inter-crop revenue generation with an MAI of Rs. 17,800. These results provide evidence for the suitability of maize as the best intercrop for the enhancement of productivity and profitability in groundnut based intercropping systems. This study adds valuable input to sustainable agriculture, particularly in that it expresses the yields and profits from distinct intercrop associations as numeral digits deemed useful by both the scientific and agricultural communities.

Semiotic Analysis of Psycholinguistic Strategies in Indonesian President Candidates’ Debates 2024: Unraveling Linguistic Signifiers and Mental Processes in Argumentative Discourse

This study investigates the semiotic and psycholinguistic strategies employed by Indonesian presidential candidates during the 2024 debates, emphasizing the critical role of language and mental processes in influencing voter perceptions and shaping political discourse. The primary objective is to dissect the linguistic signifiers and cognitive processes that underpin each candidate’s argumentative discourse, offering insights into the psychological mechanisms that govern interactions in high-stake environments. The research uses a comprehensive analysis of debate transcripts and video recordings to achieve this objective by applying content and discourse analysis techniques. This multifaceted approach enables a nuanced exploration of the communicative strategies used by the candidates, considering both verbal and nonverbal elements that contribute to their overall effectiveness in engaging the audience. The significance of this study lies in its contribution to the broader field of political communication, particularly in the Indonesian context. Thisresearch provides valuable insights into the complexities of candidate behavior in contemporary elections by examining how candidates adapt their rhetoric and strategies in response to changing public sentiments and competitive dynamics. The findings reveal that the linguistic strategies of candidates Anies Baswedan, Prabowo Subianto, and Ganjar Pranowo showed that 65% used metaphoric language to enhance emotional appeal, while 75% employed rhetorical questions to provoke thought. Baswedan’s narrative fostered empathy, Prabowo’s aggressive tone aimed to build trust, and Ganjar’s balanced rhetoric reflected an understanding of diverse voter interests, highlighting the significant role of language in shaping political perceptions and emotional responses in Indonesia.