Management Papers

Document Type

Journal Article

Date of this Version

12-2014

Publication Source

Strategic Management Journal

Volume

35

Issue

13

Start Page

1952

Last Page

1971

DOI

10.1002/smj.2188

Abstract

This paper explores the interplay between product market, strategic factor market, and resource development. More competition in the product market makes resource buyers bid higher for resources, as the value of trying to preempt the resources is higher. Holding other initial conditions constant, resources are developed more in industries with factor markets than in industries without. When buyers of resources cannot integrate more than one resource, developers choose to develop either at a low or high level, generating a type of heterogeneity that would not arise otherwise. Changes in the intensity of competition in the product market can have the opposite effect on resource development efforts depending on the presence or absence of factor markets.

Copyright/Permission Statement

This is the peer reviewed version of the following article: Chatain, O. (2014), How do strategic factor markets respond to rivalry in the product market?. Strat. Mgmt. J., 35: 1952–1971., which has been published in final form at doi: 10.1002/smj.2188. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving http://olabout.wiley.com/WileyCDA/Section/id-820227.html#terms.

Keywords

strategic factor markets, resource development, rivalry, product market competition, formal foundations of strategy

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Date Posted: 27 November 2017

This document has been peer reviewed.