Competing in times of evolution and revolution: An essay on long‐term firm survival

Abstract

Purpose

Ideas from microeconomics, market‐positioning theory and resource‐based theory have been brought together to develop a framework for discussing firm competitiveness and survival.

Design/methodology/approach

Propositions about the nature of scale economies, time, resource imitability and customer‐perceived benefits are used to provide a basis for the analysis of firms and their markets. The structures of markets and the impact of innovation and environment on these structures are discussed.

Findings

A number of hypotheses are advanced. When movements in consumer perceptions and technology are slow and predictable, leading firms may have developed enough resource capital to remain dominant. When they are not, opportunities for market leadership changes occur.

Research limitations/implications

A conclusion is that strategic management should involve the study of firms in the context of their market situation. Market‐based case studies should seek to understand how markets evolve over time by tracking changes in key variables.

Practical implications

The paper outlines factors that firms’ managers need to take into account in order to evaluate their relationships with their competitors. How these relationships impact on industry structure and the long‐term equilibrium that would result if these relationships remain unchanged is discussed.

Originality/value

A contribution to thinking about research and practical strategic management longitudinally is proposed. The approach emphasises the importance of relationships between firms and the factors that may dynamically change those relationships.

Citation

Jenkins, W. (2005), "Competing in times of evolution and revolution: An essay on long‐term firm survival", Management Decision, Vol. 43 No. 1, pp. 26-37. https://doi.org/10.1108/00251740510572461