COLLABORATIVE AND COMPETITIVE STRATEGIES FOR EMERGING BUSINESS ENVIRONMENTS

Abstract

Companies face strategic trade-offs and contractual challenges in collaborative and competitive settings within the framework of institutional theory. Institutional theory focuses on the influence of formal and informal rules and norms that shape organizational behavior. This dissertation encompasses three distinct domains: co-creation in a multi-vendor setting, luxury e-commerce, and social media marketing. Drawing from the lens of institutional theory, the research explores how collaboration, competition, and isomorphism influence decision-making and outcomes in these domains. Each domain presents unique business problems, which are formulated into research questions, supported by relevant theories and literature, and addressed through analytical or empirical models. The findings from each chapter provide valuable managerial insights. In the first chapter, the focus is on collaborative value co-creation. The growing complexity of consulting, new product development, and information technology projects has led firms to increasingly adopt the strategy of collaborative value co-creation with their vendors. By analyzing the strategic interactions among a client, a primary vendor, and a potential secondary vendor, the research uncovers the trade-offs and dynamics that arise in these complex co-creation environments. Building on institutional theory, the study highlights how collaborative relationships in co-creation differ from traditional sourcing models. It reveals that the inclusion of a secondary vendor, even with lower efficiency, can be strategically beneficial for the client in certain scenarios. Conversely, there are situations where involving a more efficient second vendor may not be advantageous. These findings shed light on the institutional factors influencing decisions in collaborative environments. In the second chapter, I investigate the realm of luxury e-commerce and explore the pricing strategies adopted by luxury brands on multi-brand platforms. The study investigates the competition dynamics between luxury brands and e-commerce platforms.It addresses the optimal pricing strategies for luxury brands and examines whether allowing platform discounts aligns with institutional pressures. Luxury brands face a difficult trade-off between offering online discounts and maintaining their high-end brand image, which is often associated with price consistency across channels. On the other hand, e-commerce platforms struggle to assert control over pricing, which affects their ability to thrive in the market. Contrary to conventional wisdom, the research demonstrates that participating in platform discounts can be a viable strategy for luxury brands, even for high-valued products. Moreover, the analysis reveals the potential for pricing coordination across different channels. By considering market conditions and customer preferences, the study identifies factors that impact decision-making and profitability, contributing to the understanding of institutional influences in luxury e-commerce. In the third chapter, the research explores social media marketing in the context of the luxury fashion industry, focusing on the influence of isomorphism between competing brands. Grounded in institutional theory, the study employs machine learning techniques to analyze data from the social media platform of two prominent luxury brands. By examining content features and engagement rates, the research investigates the existence of isomorphic behavior among competing brands. The findings highlight similarities in content structures, approaches, and messaging strategies, indicative of isomorphism. However, the study also emphasizes the importance of differentiation in content strategy to create unique and distinctive brand identities. These insights offer valuable implications for firms seeking to enhance their social media marketing strategies within the institutional context. Overall, this dissertation integrates the perspectives of institutional theory across three interconnected chapters. By examining collaboration, competition, and isomorphism in co-creation, luxury e-commerce, and social media marketing, my research provides a comprehensive understanding of how institutional factors shape decision-making and outcomes in these domains. The findings contribute to the existing literature on institutional theory, offering practical insights for managers in navigating the complexities of collaborative and competitive environments, while aligning with prevailing institutional pressures. Additionally, the research opens avenues for future exploration into the interplay between institutions and strategic decision-making in various business contexts.