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Competitive inter‐firm interactions: determinants of divergence versus convergence

Competitive inter‐firm interactions: determinants of divergence versus convergence This paper is a study of competitive and cooperative interactions among members of a competitive industry group. There are few strategic, tactical or market moves that do not affect competition in any industry. Competitive and cooperative interactions among competitive firms are studied to determine how the reactions of competitors to an initiator of an action cause convergent or divergent patterns. It is hypothesized that the patterns, or cycles, of competitive and cooperative interactions are a function of complexity of the interaction cycle, degree of offensiveness of participants’ moves, action reversibility, previous interaction experience, interaction cycle visibility and response time. An empirical test of the hypothesis revealed that the two most strongly supported hypotheses were: interaction cycle complexity increases the likelihood of interaction cycle convergence, and interaction cycle visibility increases the likelihood of interaction cycle divergence. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Decision Emerald Publishing

Competitive inter‐firm interactions: determinants of divergence versus convergence

Management Decision , Volume 38 (3): 15 – Apr 1, 2000

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References (41)

Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
0025-1747
DOI
10.1108/EUM0000000005347
Publisher site
See Article on Publisher Site

Abstract

This paper is a study of competitive and cooperative interactions among members of a competitive industry group. There are few strategic, tactical or market moves that do not affect competition in any industry. Competitive and cooperative interactions among competitive firms are studied to determine how the reactions of competitors to an initiator of an action cause convergent or divergent patterns. It is hypothesized that the patterns, or cycles, of competitive and cooperative interactions are a function of complexity of the interaction cycle, degree of offensiveness of participants’ moves, action reversibility, previous interaction experience, interaction cycle visibility and response time. An empirical test of the hypothesis revealed that the two most strongly supported hypotheses were: interaction cycle complexity increases the likelihood of interaction cycle convergence, and interaction cycle visibility increases the likelihood of interaction cycle divergence.

Journal

Management DecisionEmerald Publishing

Published: Apr 1, 2000

Keywords: Interaction; Competition; Industry; Convergence

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