The Innovation Dilemma and Money Burning Strategy:Under Internal and External Competition

摘要：

　　In the current"Internet plus"wave,companies often use the money burning strategy to develop innovative online business,but they encounter the"innovator dilemma".Why?This paper es-tablishes a competition model between two companies.Each company has its own online sector and offline sector,but each company that burns money online faces the internal offline sector's constraints and exter-nal companies'online sector's technology imitation competition.We find that when technology imitation exists,the more money burning of innovator,the lower costs of competitors.However,surprisingly,when technology imitation is more severe,the costs of innovator companies decrease.If opportunity cost is also considered,the EVA of innovatory companies increases first and then decreases when burning money is optimal.We provide the amount of optimal money burning and propose that competition strategies should be dynamically adjusted according to opportunity costs and technological imitations.

关键词： Innovator Dilemma Money Burning Competition Strategy

作者: Ma Tianping

作者单位: Sports Business School of Beijing Sport University,Beijing 100084

会议类型: 国内会议

会议名称: 中国管理学七十年学术研讨会暨中国企业管理研究会2019年年会

会议地点: 上海

会议语种:英文

页码: 696-713

在线出版日期: 2019-10-01（万方平台首次上网日期，不代表论文的发表时间）