Abstract
In an effort to further our understanding of competitive dynamics, the three constructs of firm specialization, environmental munificence, and rivalry intensity are examined in relation to financial performance in service‐intensive Small and Medium‐Sized Enterprises (SMEs). Using a sample of physician organizations, direct and interaction relationships are empirically examined using multivariate regression analyses. Findings confirm a three‐way interaction that exists among these factors in relationship to overall performance; this supports a more complex, configurations approach to competitive dynamics research, particularly among service‐intensive SMEs.
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