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
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.
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