The Relationships among Competition, New Product Advantage, and Market Performance
Author
Abstract
This study analyzes the relationship between two dimensions that decomposed from the competition and new product advantage in positive and negative results. By focusing on behavioral competition (competitive intensity) and environmental competition (dysfunctional competition) within the nationality scenario, the new product advantage improves the market performance. By selecting the selling suppliers to match up with their same buying retailer as our sample, two-stage survey of 210 supplier–customer dyads were collected during 2019-2020. Empirical results indicate that, first, competitive intensity positively influences the new product advantage, but dysfunctional competition has the negative influence. Second, compared with local firms, foreign firms exert stronger impact on the relationship between competitive intensity and new product advantage. Third, the new product advantage improves market performance. This research is based on the transaction cost economics by exploring behavioral and environmental uncertainty mechanisms to better analyze the importance of supply chain linkages. Our findings provide important implications for competition and innovation literatures and shed light on the environment-strategy-performance framework.
Key Words
competitive intensity, new product advantage, dysfunctional competition, market performance
