DETERMINANTS OF COMPETITORS RESPONSE-TIME TO A NEW PRODUCT INTRODUCTION

This research studies a neglected dimension of competitive defensive s trategy-the speed of a competitor's reaction to the introduction of a new product. Building on the literature in organizational and strategi c management, the authors investigate how the strategic pressures faci ng a firm and its organizational characteristics influence the speed w ith which it is willing and able to respond. A model that considers th e ordered nature of the dependent measure is specified and estimated u sing PIMS data on industrial and consumer product manufacturers. Marke t growth, the market share of the reacting firm, the typical new produ ct development time and the frequency of product changes in the indust ry, and the market share of the threatening firm appear to be signific ant determinants of reaction time.