Speed advantages or profiting from imitation? The imitation dilemma in the follower strategy

Abstract

Speed advantages and profiting from imitation are two fundamental goals of strategic imitation, which are separately highlighted in studies on follower strategy and profiting from innovation. However, because of the resource similarity introduced by imitation, imitators appear to face a dilemma between those goals. Although imitating the resource configurations and practices of others establishes speed advantages, increased resource similarity encourages rivals to retaliate to the point of undermining imitation profits. Using survey data from 334 Chinese manufacturing firms and regression analysis, this study empirically tests the effects of imitation on new product development (NPD) speed and resource attacks by competitors. We also examine the moderating effects of business and government networks. The results demonstrate that imitation increases NPD speed and resource attacks by competitors. Specifically, business networks strengthen the effects of imitation on NPD speed and resource attacks by competitors, while government networks weaken them. This research contributes to the literature on strategic imitation by exploring the imitation dilemma and the strategic value of leveraging network relationships in response.