Competitive Experience, Competitive Repertoire Complexity and Market Performance—Based on the Red Queen Effect Theory

Abstract

Abstract: According to the Red Queen competition theory, the past competitive experience of an enterprises will affect its survival conditions and strategic activities, thus having a profound impact on its development. This paper selects 37 listed companies in China’s home appliance industry as research samples to research the impact of their competitive experience on competitive repertoire complexity during the period of 2013 to 2017 and explore the impact of the competitive repertoire complexity on their market performance. At the same time, we consider the moderating effect of internal factor (i.e., heterogeneity of top management team) on the relationship between competitive experience and competitive repertoire complexity, and the moderating effect of external factor (i.e., industry growth) on the relationship between competitive repertoire complexity and market performance. The conclusions of this paper are as follows: there is a significant negative relationship between competitive experience and competitive repertoire complexity, competitive repertoire complexity significantly promotes market performance, heterogeneity of top management team doesn’t moderate the relationship between competitive experience and competitive repertoire complexity, and industry growth has no significant moderating effect on the relationship between competitive repertoire complexity and market performance. This study makes an important attempt to combine the Red Queen evolution theory with competitive repertoires, expands the research connotation of the Red Queen theory, and has a guiding significance for senior leaders to make reasonable strategic decisions.

Key words: competitive experience, competitive repertoire complexity, market performance, heterogeneity of top management team, industry growth

Hou Dan, Deng Xinming, Qiu Wenyun. Competitive Experience, Competitive Repertoire Complexity and Market Performance—Based on the Red Queen Effect Theory[J]. Management Review, 2024, 36(4): 207-220.

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