STRATEGIC GROUPS AND RIVALROUS FIRM BEHAVIOR: TOWARDS A RECONCILIATION

Abstract

This research examines the question of whether rivalry is greater between or within strategic groups by utilizing more direct, dynamic and fine-grained measures of rivalry. Examining the competitive actions of firms in different strategic groups to determine if competitive responses were more likely to occur from firms in the same strategic group, or from firms in different strategic groups, the research found that competitive responses cannot be predicted by strategic group membership. Importantly, however, strategic group membership is a predictor of the manner by which firms compete with one another, or the frequency with which they undertake competitive actions, cut prices, instigate warfare and imitate rivals. © 1997 by John Wiley & Sons, Ltd.

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