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The Two Faces of Competition: Dynamic Resourcefulness and the Hypercompetitive Shift

Organization Science, Volume 7, Issue 3

Pages 221 - 242

https://doi.org/10.1287/orsc.7.3.221

Published: 01 June 1996 Publication History

Abstract

<P>Competition in the American economy has fundamentally changed over the last few decades, from static to dynamic. This study labels this important change the hypercompetitive shift, and documents it across 200 industries of the US manufacturing sector during I958 to 1991. For industries that undergo a hypercompetitive shift, there is an increase in the cross-firm variance in performance and a rotation in the value-rivalry relationship from a negative association to an inverted-U. As a consequence of these competitive changes, the strategic focus of firms shifts from careful exploitation of given, highly durable strategic assets to the steady creation of many new, rapidly depreciable ones.</P> <P>The key driver of hypercompetitive shift is the dynamic resourcefulness of an industry, or the ease with which new strategic assets can be created. Determinants of dynamic resourcefulness include the dynamism of related transactors notably consumers and suppliers. the knowledge base of the industry, and structural conditions that promote easy entry.</P>

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Cited By

Eloranta VOrkoneva LHakanen ETurunen T(2016)Using Platforms to Pursue Strategic Opportunities in Service-Driven ManufacturingService Science10.1287/serv.2016.01558:3(344-357)Online publication date: 1-Sep-2016
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Vaaler PMcNamara G(2010)Are Technology-Intensive Industries More Dynamically Competitive? No and YesOrganization Science10.1287/orsc.1080.039221:1(271-289)Online publication date: 1-Jan-2010
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The Two Faces of Competition: Dynamic Resourcefulness and the Hypercompetitive Shift
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cover image Organization Science

Organization Science Volume 7, Issue 3

June 1996

148 pages

ISSN:1526-5455

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INFORMS

Linthicum, MD, United States

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Published: 01 June 1996

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Cited By

Eloranta VOrkoneva LHakanen ETurunen T(2016)Using Platforms to Pursue Strategic Opportunities in Service-Driven ManufacturingService Science10.1287/serv.2016.01558:3(344-357)Online publication date: 1-Sep-2016
https://dl.acm.org/doi/10.1287/serv.2016.0155
Xue LRay GSambamurthy V(2012)Efficiency or innovationMIS Quarterly10.5555/2481639.248164836:2(509-528)Online publication date: 1-Jun-2012
https://dl.acm.org/doi/10.5555/2481639.2481648
Vaaler PMcNamara G(2010)Are Technology-Intensive Industries More Dynamically Competitive? No and YesOrganization Science10.1287/orsc.1080.039221:1(271-289)Online publication date: 1-Jan-2010
https://dl.acm.org/doi/10.1287/orsc.1080.0392
Rothaermel FAlexandre M(2009)Ambidexterity in Technology SourcingOrganization Science10.1287/orsc.1080.040420:4(759-780)Online publication date: 1-Jul-2009
https://dl.acm.org/doi/10.1287/orsc.1080.0404
Ray GWu DKonana P(2009)Competitive Environment and the Relationship Between IT and Vertical IntegrationInformation Systems Research10.1287/isre.1080.020220:4(585-603)Online publication date: 1-Dec-2009
https://dl.acm.org/doi/10.1287/isre.1080.0202
Konana PRay G(2007)Physical product reengineering with embedded information technologyCommunications of the ACM10.1145/1290958.129096550:10(72-78)Online publication date: 1-Oct-2007
https://dl.acm.org/doi/10.1145/1290958.1290965
Mitchell V(2006)Knowledge integration and infromation technology project performanceMIS Quarterly10.5555/2017317.201732430:4(919-939)Online publication date: 1-Dec-2006
https://dl.acm.org/doi/10.5555/2017317.2017324
Rothaermel FHill C(2005)Technological Discontinuities and Complementary AssetsOrganization Science10.1287/orsc.1040.010016:1(52-70)Online publication date: 1-Jan-2005
https://dl.acm.org/doi/10.1287/orsc.1040.0100
Jarvenpaa SLeidner DKumar KDeGross J(1997)An information company in MexicoProceedings of the eighteenth international conference on Information systems10.5555/353071.353144(399-410)Online publication date: 15-Dec-1997
https://dl.acm.org/doi/10.5555/353071.353144
(1996)New Organizational Forms and Strategies for Managing in Hypercompetitive EnvironmentsOrganization Science10.1287/orsc.7.3.2117:3(211-220)Online publication date: 1-Jun-1996
https://dl.acm.org/doi/10.1287/orsc.7.3.211

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