Abstract
PurposeThis study aims to introduce the original idea of competitive empathy, to go beyond competitive advantage and help managers and entrepreneurs strategize with a shared purpose.Design/methodology/approachThis study builds on and originally combines seminal works on empathy in the fields of psychology and management, which are extended to embrace the notion of empathy toward competitors. Empirical research leveraged different methods, including “class as a lab” research; field studies; and collaborative research.FindingsTo support managers’ and entrepreneurs’ effort to be more empathic and emotionally intelligent when dealing with competitors, the study introduces the “Competitive Empathy Catalyst” tool, which identifies three layers – namely, orientation, execution and foundation – where to look for common ground between your company’s and your competitors’ strategy. A set of principles that should inspire managers’ strategic behavior and action to enable competitive empathy are also proposed: search for a non-conflicting identification with competitors and avoid “egotism”; adopt “perspective-taking”; practice “mirroring”; aim at the “greater good”; leverage “vicarious learning” and apply “cautionary trust.”Practical implicationsLooking at competitors from a different angle and applying competitive empathy as a strategic device can uncover a plethora of opportunities benefiting the company’s strategy and ability to create, deliver and capture value.Originality/valueEmpathy in management theory and practice has been traditionally associated with interaction with customers, employees and stakeholders. Competitive empathy counterintuitively applies empathy to a category of players that were largely left out from the discussion, that is, competitors.
Highlights
Strategy traditionally centers around the notion of competitive advantage and the need to be different from competitors to obtain superior performance
The relationship between empathy and strategy was already hinted at by a limited number of studies, which recognized how nurturing empathy could be beneficial to managers, especially when dealing with customers, colleagues and employees and stakeholders
The idea of empathy for competitors takes stock of my published academic and practitioner studies on strategic renewal and business model design, validation and innovation applied to both incumbents and startups
Summary
Strategy traditionally centers around the notion of competitive advantage and the need to be different from competitors to obtain superior performance. Empathy toward stakeholders lies at the core of a shared value approach whose goal is to connect societal and economic progress in a shared value view, setting policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities where it operates (Porter and Kramer, 2019) These streams of research hold great potential, our study claims that they consistently leave a key actor out of the equation, that is, competitors. Placing empathy at the core of strategic thinking and behavior gets managers to put themselves in customers’ shoes to uncover hidden pain and improve customer experience (Patnaik, 2009) It may inspire employees and team members to embrace the company’s mission and work together to pursue a higher purpose (Myashiro and Colonna, 2011; Duarte, 2020) or generate shared value with stakeholders (Hart and Sharma, 2004). It encourages an unconventional view on competition (Figure 1)
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