The Effects of Opportunity Alertness and Competitive Tension on Organizational Change Strategies

Abstract

Competitive dynamics theory emphasizes that entrepreneurs must be alert to the opportunities, perceiving the tension of competition between firms to implement organizational change strategy. However, empirical studies on the above aspects are very scarce. Based on the literature review, this chapter proposes a research model about opportunity alertness, competitive tension, and organizational change and uses 183 valid questionnaires from the northeast of China to test this model. The empirical results show that opportunity alertness and competitive tension have a significant impact on organizational change strategies respectively, and competitive tension moderates the relationship between opportunity alertness and organizational change strategies. The results show that facing fierce competition, entrepreneurs, who can exert the organizational strategies, should not only improve opportunity alertness, but also strengthen their understanding of the competitive situation among enterprises and the value of competitive tension. Finally, theoretical and practical implications are addressed.