Abstract
Competitive dynamics research has focused on studying whether rivals are able and likely to carry out competitive actions, typically by examining indirect reasons such as characteristics of the actions themselves, the firms involved, or the competitive context. We explore why rivals initiate a specific competitive action at a particular time and situation. Drawing from the philosophy of action literature, we introduce the concept of competitive rationales to examine the primary reasons that cause tactical actions. Given the rapid exchanges characterizing tactical competitive dynamics, we conducted an inductive, multicase study to explore the reasons behind over 800 discrete tactical decisions carried out by 9 professional basketball coaches during 15 basketball games. To garner insight, we develop a conceptual framework revealing their types and scope. Even during intense head-to-head rivalry, most rationales were not rivalrous but were instead organizational-to optimize resource use, strategic consistency, and reputation-or social-to manage relationships. Moreover, the three main types of rationales varied in scope, extending beyond immediate competitive situations and rivals to address longer term, strategic outcomes, and assorted stakeholders. Thus, our analysis reveals these rationales to be complex and potentially difficult for rivals to decipher. It also recasts each component of the dominant awareness-motivation-capability (AMC) model of rivalry, suggesting that awareness is challenged by subtle rationales, motivation drives not only action but also forbearance, and capability is both a requirement and product of action.
Highlights
Competitive action is the central construct and a key distinguishing feature of competitive dynamics research (Chen & Miller, 2012, 2015)
Drawing from the philosophy of action literature, we introduce the concept of competitive rationales to examine the primary reasons that cause tactical actions
Competitive tension or superior capability can tempt action but cannot explain why a firm initiates a specific action at a particular time or situation, nor what a firm is attempting to achieve with that action
Summary
Competitive action is the central construct and a key distinguishing feature of competitive dynamics research (Chen & Miller, 2012, 2015). Competitive dynamics research has examined various factors that drive competitive actions: superior capabilities (e.g., Andrevski, Brass, & Ferrier, 2016; Carnes, Xu, Sirmon, & Karadag, 2019; Gnyawali & Madhavan, 2001; Ndofor, Sirmon, & He, 2011; Smith et al, 1991), market centrality and multimarket contact (e.g., Chen & Miller, 1994; Livengood & Reger, 2010; McGrath, Chen, & MacMillan, 1998; Yu & Cannella, 2013), subjective perceptions of rivalry and tension (e.g., Chen, Su, &Tsai, 2007; Kilduff, Elfenbein, & Staw, 2010), and managerial cognitive dispositions (e.g., Hambrick, Cho, & Chen, 1996; Nadkarni & Barr, 2008; Nadkarni & Chen, 2014) Those factors are not the primary reasons for a specific action. Competitive tension or superior capability can tempt action but cannot explain why a firm initiates a specific action at a particular time or situation, nor what a firm is attempting to achieve with that action
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