Interaction Model of Superior Performance Based on Technological Resources and Competitive Actions in the Nascent Cycle of the Tablet Industry

Drawing on and integrating the resource-based view (RBV) and competitive dynamics literature, this study developed an interaction model to explore competitive contests by investigating how the interaction between technologically heterogeneous resources and competitive actions affects performance in the nascent market. The proposed model was examined using structured content analysis and data extracted from more than 3,200 news articles regarding the interfirm rivalry between Google and Apple in the table industry. The findings, first, indicate that in nascent markets, aggressive competitive action can exert a negative effect on firm performance. Second, this paper presents empirical evidence supporting the RBV through testing how the technological resource heterogeneity of these firms contributed to their performance (in terms of technological value and technological rarity). Finally, we found that technological resource heterogeneity mitigates the potentially negative effects of aggressive competitive action on the performance of high-technology firms during the nascent cycle.