The role of competitive action in market share erosion and industry dethronement: A study of industry leaders and challengers

Market share erosion and dethronement of market leaders are examined throug h the lens of "Austrian" economics. Our results suggest that leaders are mo re likely to experience market share erosion and/or dethronement when-relat ive to industry challengers-they are less competitively aggressive, carry o ut simpler repertoires of actions, and carry out competitive actions more s lowly. These findings, based an seven years of data collected in 41 industr ies, contribute to research on hypercompetition, organizational decline, an d competitive dynamics.