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dc.contributor.authorAghaie, Sina
dc.contributor.authorJavadina, Amir
dc.contributor.authorMirahmad, Hooman
dc.contributor.authorJanani, Saeed
dc.identifier.citationAghaie, S., Javadinia, A., Mirahmad, H., & Janani, S. (2022, April 1). How incumbents' response strategy impacts rivals' market exit timing? Journal of Business Research. Retrieved April 12, 2022, from
dc.descriptionClick on the DOI to access this article (may not be free).en_US
dc.description.abstractPrior research illustrates that incumbent firms commonly react to a rival’s market entry by adjusting their marketing mix elements. Incumbents either adjust only one element – adopting a “focused” strategy – or adjust several elements simultaneously– adopting a “combinative” strategy. While previous studies have extensively investigated the incumbents’ marketing mix reactions to a market entry, no study has explored the defensive response strategy, and its consequences have yet to be empirically examined. Drawing upon signaling theory and using a multi-market dataset in the U.S. airline industry, the authors find that, compared to a combinative strategy, adopting a focused response strategy in response to a rival’s entry does shorten the new entrant’s exit timing. However, when incumbents possess high resource and capabilities, this performance gap between the two response strategies is reduced. The authors discuss the contributions to the strategy and management literature and provide actionable insights to managers and policymakers.en_US
dc.relation.ispartofseriesJournal of Business Research;2022
dc.subjectMarket exiten_US
dc.subjectResponse strategyen_US
dc.subjectCompetitive dynamicsen_US
dc.subjectResource allocationen_US
dc.subjectAirline industryen_US
dc.titleHow incumbents’ response strategy impacts rivals’ market exit timing?en_US
dc.rights.holder© 2022 Elsevier Inc. All rights reserveden_US

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