July 24, 2004 | Marvin B. Lieberman, Shigeru Asaba
This paper explores the phenomenon of business imitation, categorizing theories into two broad categories: information-based and rivalry-based. Information-based theories suggest that firms imitate others to gain superior information, while rivalry-based theories propose that firms imitate to maintain competitive parity or limit rivalry. The authors discuss the conditions under which each type of imitation is most likely and offer guidance on identifying imitation in practice. They also address the performance implications of imitation, noting that while it can lead to positive outcomes such as the adoption of useful innovations, it can also result in negative outcomes like wasteful investments. The paper emphasizes the importance of understanding the causes and consequences of imitation to inform business strategies and policy decisions.This paper explores the phenomenon of business imitation, categorizing theories into two broad categories: information-based and rivalry-based. Information-based theories suggest that firms imitate others to gain superior information, while rivalry-based theories propose that firms imitate to maintain competitive parity or limit rivalry. The authors discuss the conditions under which each type of imitation is most likely and offer guidance on identifying imitation in practice. They also address the performance implications of imitation, noting that while it can lead to positive outcomes such as the adoption of useful innovations, it can also result in negative outcomes like wasteful investments. The paper emphasizes the importance of understanding the causes and consequences of imitation to inform business strategies and policy decisions.