Abstract
A firm’s vulnerability and aggressiveness are important constructs because both are antecedents of interfirm hostility, and of course, market hostility tends to influence firm performance and resilience (Carmeli & Markman, 2011). Recognizing that firms’ vulnerability to attacks is related to aggressiveness (a proclivity to attack), competitive dynamics research holds that the vulnerability-aggressiveness relations follow a linear path. We show that, and explain why firms’ vulnerability-aggressiveness relation actually follows an inverted U-shaped pattern. Our study also reveals how resource management can mitigate these inverted U-shaped vulnerability-aggressiveness relations. All in all, our study unearths resources and conditions that influence firms’ vulnerability-aggressiveness relations and even reduce interfirm hostility.
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