Does It Pay to Compete Aggressively? Contingent Roles of Internal and External Resources
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Authors
Andrevski, Goce
Ferrier, Walter J.
Date
2019-11-22
Type
journal article
Language
en
Keyword
alliance networks , competitive actions , competitive aggressiveness , competitive dynamics , hypercompetition
Alternative Title
Abstract
We examine, in hypercompetitive environments, why some firms fail to benefit from competitive aggressiveness while others experience superior profits. We explore the relationship between competitive aggressiveness and performance in a sample of 141 firms from three hypercompetitive industries—personal computers, computer-aided software engineering, and semiconductors—from 1995 to 2006. Contrary to the predominant view within competitive dynamics research, we find that competitive aggressiveness is not a universally effective strategy. For some firms, excessive competitive aggressiveness can escalate costs and diminish performance. Using polynomial regression analysis and response surface methodology, we identify the conditions under which competitive aggressiveness enhances firm performance. Our findings reveal that firms benefit from competitive aggressiveness when they have specialized technological resources and support from a dense network of alliance partners.
Description
Andrevski, G., & Ferrier, W. J. (2019). Does It Pay to Compete Aggressively? Contingent Roles of Internal and External Resources. Journal of Management, 45(2), 620–644. Copyright [The Authors] © 2016 Sage. DOI: https://doi.org/10.1177/0149206316673718
Citation
Andrevski, G., & Ferrier, W. J. (2019). Does It Pay to Compete Aggressively? Contingent Roles of Internal and External Resources. Journal of Management, 45(2), 620–644. https://doi.org/10.1177/0149206316673718
Publisher
Sage