A management perspective on market dynamics: Stabilizing and destabilizing strategies in the US defense industry

Markets are at the same time stable and open. Economists and sociologists explain this double nature by factors of stability and factors of uncertainty. This paper adopts a management science perspective, focusing on strategic actions and reactions and using a sequential analysis. Relying on a case study of the defense industry, it shows that a distinction has to be made between change strategies ("maintaining the stability" and "maintaining the openess" strategies). To understand market processes, the paper also shows it is important to take into account the strategies developped by three kinds of players: the customer(s), the suppliers and the regulators (antitrust authorities).

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