Research Issues at the Boundary of Competitive Dynamics and Market Evolution

Building on the observation that competitive dynamics and market evolution are inextricably linked and underresearched, we propose a road map to guide and stimulate future research in the area. A number of rationales have been proposed to explain why there is relatively little research directed toward understanding the links between competitive dynamics and market evolution; these include the predominance of different research paradigms in each area, a lack of data appropriate for analyzing the two areas together, and the difficulty of obtaining robust and significant results with analysis that is by definition complex (it must consider factors and outcomes both across firms and over time). Using this last rationale as a starting point, we develop a series of research propositions related to key relationships where (a) insignificant or contradictory results have been obtained (in extant research) or (b) researchers have yet to delve. The propositions are designed to deepen our understanding of the relationship between the areas. Throughout the analysis, the key to developing the propositions is to recognize the importance of moderating factors, mediating factors, and covariates. In addition, where the approach to empirically test a proposition is new, we propose categories, measures, and comparisons that can be used.