Academy of Management Review2014-11-05 10:22 PM

Competitor Analysis and Interfirm Rivalry: Toward A Theoretical Integration

Abstract

This article bridges two important subjects in strategy: competitor analysis and interfirm rivalry. Through a refined conceptualization of competitor analysis, the article introduces two firm-specific, theory-based constructs: market commonality, developed from the literature on multiple-point competition, and resource similarity, derived from the resource-based theory of the firm. The joint consideration of these two constructs shows the complementarity of these two prominent but contrasting strategy theories. Each firm has a unique market profile and strategic resource endowment, and a pair-wise comparison with a given competitor along these two dimensions will help to illuminate the prebattle competitive tension between these two firms and to predict how a focal firm may interact with each of its competitors. The idea of competitive asymmetry is introduced, that is, the notion that a given pair of firms may not pose an equal degree of threat to each other. To illustrate competitor mapping, measures of these two constructs are proposed, and an example is offered. The article ends with a number of implications for research and practice.


Full Article

KEYWORDS

SHARE & LIKE

COMMENTS

ABOUT THE AUTHOR

Academy of Management Review

The Academy of Management Review (AMR) is ranked among the top five most influential and frequently cited management and business journals. AMR is a theory development journal that publishes the highest quality conceptual work. Impact Factor: 7.817.

0 Following 10 Fans 0 Projects 71 Articles

SIMILAR ARTICLES

AbstractThis article applies the convergent insights of institutional and resource dependence perspectives to the prediction of strategic responses to

Read More

AbstractThe complexity of political, regulatory, and technological changes confronting most organizations has made radical organizational change and ad

Read More

AbstractThis paper describes the process of inducting theory using case studies—from specifying the research questions to reaching closure. Some featur

Read More

AbstractManagement scholars have long separated the study of work and diversity, assuming that the nature of work itself is not affected by race or gen

Read More

AbstractWe argue that under certain circumstances crowdsourcing transforms distant search into local search, improving the efficiency and effectiveness

Read More

Impact Factor: 7.817#1 of 172 journals in the category of "Management." #1 of 110 journals in the category of "Business."*2013 Journal Citation Reports

Read More

AbstractWe investigate the organizational pursuit of seemingly impossible goals—commonly known as stretch goals. Building from our analysis of the mech

Read More

AbstractWhat happens when an employee generates a new idea and wants to further explore it but is instructed by a manager to stop working on it? Among

Read More

AbstractWe create a taxonomy of hybrid governance forms and develop a formal theory that predicts when a given hybrid form will be efficient. Our model

Read More

AbstractWe define management innovation as the invention and implementation of a management practice, process, structure, or technique that is new to t

Read More