Motivation Matters: Corporate Scope and Competition in Complementary Product Markets

Strategic Management Journal. 37(7): 1304-1315, 2016

29 Pages Posted: 11 Dec 2014 Last revised: 24 Oct 2018

See all articles by Victor Manuel Bennett

Victor Manuel Bennett

University of Utah

Lamar Pierce

Washington University, Saint Louis - John M. Olin School of Business

Date Written: April 1, 2015

Abstract

We argue that a pure capabilities-based view does not accurately explain the competitive dynamics of increasingly common settings where firms act as both complementors and competitors. We propose that the Awareness-Motivation-Capability framework is more appropriate for these settings. We derive predictions from both a pure capabilities view and the AMC framework and test those predictions in the United States auto leasing market, where the leasing subsidiaries of car manufacturers directly compete with the same independent lessors who provide complements to the manufacturers. Although our results are consistent with capabilities playing an important role, motivation appears to be a critical factor explaining the competitive dynamics of the market.

Suggested Citation

Bennett, Victor Manuel and Pierce, Lamar, Motivation Matters: Corporate Scope and Competition in Complementary Product Markets (April 1, 2015). Strategic Management Journal. 37(7): 1304-1315, 2016, Available at SSRN: https://ssrn.com/abstract=2535952 or http://dx.doi.org/10.2139/ssrn.2535952

Victor Manuel Bennett (Contact Author)

University of Utah ( email )

1645 E. Campus Center
Salt Lake City, UT 84112
United States

HOME PAGE: http://vmbennett.com

Lamar Pierce

Washington University, Saint Louis - John M. Olin School of Business ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States
314-935-5205 (Phone)

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