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Asymmetric rivalry within and between strategic groups
Author(s) -
MasRuiz Francisco J.,
RuizMoreno Felipe,
Ladrón de Guevara Martínez Antonio
Publication year - 2014
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2102
Subject(s) - rivalry , accommodation , group (periodic table) , corporate group , business , industrial organization , microeconomics , economics , psychology , finance , corporate governance , chemistry , organic chemistry , neuroscience
Our study examines asymmetric rivalry within and between strategic groups defined according to the size of their members. We hypothesize that, owing to several forms of group‐level effects, including switching costs and efficiency, strategic groups comprising large firms expect to experience a large amount of retaliation from firms within their group and accommodation from the group comprising smaller firms. Small firms, on the other hand, expect to experience a small amount of retaliation from the group comprising large firms and no reaction from the other firms in their group. We estimate the effect of group‐level strategic interactions on firm performance. Our analysis reveals that the rivalry behavior within and between groups is asymmetric, which supports the dominant‐fringe relation between firms, as described in our hypothesis . Copyright © 2013 John Wiley & Sons, Ltd.