The Effects of Competitive Density on Traded and Local Market Performance in the Nonprofit Performing Arts Sector

46 Pages Posted: 12 May 2021

See all articles by Richard Briesch

Richard Briesch

Southern Methodist University (SMU), Edwin L. Cox School of Business, Marketing Department (Deceased)

Ernan Haruvy

McGill University; McGill University - Desautels Faculty of Management

Glenn B. Voss

SMU DataArts; Southern Methodist University (SMU) - Marketing Department

Zannie Voss

Southern Methodist University

Date Written: May 10, 2021

Abstract

This study examines the effects of local competition on product innovation and performance in local versus traded markets, with empirical evidence from the performing arts sector. Local markets feature locally produced and consumed offerings and consistent patterns of competitive density. Traded markets feature non-local economic exchanges that create revenue flows from one geographic market to another and divergent levels of competitive density. High levels of competitive density create intense rivalry in the local market, which fosters product innovation and success in traded markets. By explicitly accounting for these countervailing effects, conceptually and empirically, this study offers fresh insights into equivocal findings regarding the effects of competitive concentration. The results offer compelling evidence that competitive density in the performing arts has a positive effect on product innovation, an increasingly positive effect on traded market performance, and negative effects on local market performance attributable to competitive rivalry.

Keywords: Performing arts; Nonprofits; Competitive Density

Suggested Citation

Briesch, Richard and Haruvy, Ernan and Voss, Glenn B. and Voss, Zannie, The Effects of Competitive Density on Traded and Local Market Performance in the Nonprofit Performing Arts Sector (May 10, 2021). SMU Cox School of Business Research Paper No. 21-05, Available at SSRN: https://ssrn.com/abstract=3843038 or http://dx.doi.org/10.2139/ssrn.3843038

Richard Briesch

Southern Methodist University (SMU), Edwin L. Cox School of Business, Marketing Department (Deceased) ( email )

United States

Ernan Haruvy (Contact Author)

McGill University ( email )

1001 Sherbrooke St. W
Montreal, Quebec H3A 1G5
Canada

McGill University - Desautels Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal, Quebec H3A1G5 H3A 2M1
Canada

Glenn B. Voss

SMU DataArts ( email )

SMU
6101 Bishop
Dallas, TX 75205
United States

Southern Methodist University (SMU) - Marketing Department

United States

Zannie Voss

Southern Methodist University ( email )

Cox School of Business, Meadows School of the Arts
6212 Bishop Blvd.
Dallas, TX 75275
United States

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