Hypercompetition: a review and agenda for future research

Abstract

Purpose The purpose of this study is to review and understand the dimensionality of hypercompetition, factors causing a hypercompetitive environment and the consequences of hypercompetition on markets. Thereby, the purpose of the study is to cover the main contributors in the research field of hypercompetition and explore their findings and different views on hypercompetition. Design/methodology/approach Systematically review 131 conceptual and empirical studies published or presented at a conference in the past 25 years, with the focus on the definitions, causes and consequences (or presumed effects) of hypercompetition. In the paper, I follow the well-known systematic literature review method by Tranfield et al. (2003). Findings The contribution of the study is to advance the knowledge of researchers and managers, in such a way that it becomes easier for them to select relevant variables to measure hypercompetition and identify strategies for gaining temporary competitive advantages in hypercompetitive environments. The construct of hypercompetition required a consolidation of commonalities in the definitions and characteristics used by scholars, to ensure that proper assumptions and variables are being used to measure hypercompetition in future research. Several ways to measure the effects of hypercompetition on firms, industries and individuals have been proposed, but the field still lacks of a clear definition on how to directly measure the construct. Practical implications In this paper, I highlight three managerial implications of hypercompetition as follows: action-based strategy, the determinants of hypercompetition and the importance for managers of accurately establishing their firm’s competitive situation. Originality/value Previous reviews in the area have either focussed on specific components or effects of hypercompetition. The present study collectively takes into consideration the definitions, causes and consequences of hypercompetition on firms, industries and individuals. The contribution of the paper is to indicate future opportunities and challenges within research on hypercompetition.