The search for hypercompetition: evidence from a Nordic market study

Some scholars and practitioners argue that markets have become hypercompetitive, decreasing the opportunities for sustainable competitive advantage. We test for increasing competition in a panel of 266 Danish firms from 7 industries over the period 1980-2017. We find no support for the argument that...

Full description

Saved in:
Bibliographic Details
Published in:Industry and innovation 2021-10, Vol.28 (9), p.1099-1128
Main Authors: Lindskov, Annesofie, Sund, Kristian J., Dreyer, Johannes K.
Format: Article
Language:English
Subjects:
Business competition
Competitive advantage
competitive dynamics
Hypercompetition
Markets
resource-based view
sustainable competitive advantage
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Some scholars and practitioners argue that markets have become hypercompetitive, decreasing the opportunities for sustainable competitive advantage. We test for increasing competition in a panel of 266 Danish firms from 7 industries over the period 1980-2017. We find no support for the argument that the market across industries has become hypercompetitive over this period. The durability of abnormal business returns has remained stable. Dynamism only changed in the 1980s, and levels of munificence are also stable. We do, however, find a small decrease in the survival probability rate of firms over time. Our results lead us to caution against the use of hypercompetition as a universal label for the state of contemporary competition.
ISSN:1366-2716
1469-8390
DOI:10.1080/13662716.2020.1848521