Conceptualizing competition and rivalry in a networking business market

Abstract

Competition is considered a driving force of markets, but how competing shapes the business network is not so clear. We contribute to the literature by exploring competing as a firm process. We analyze business competition literature according to a structural and social constructivist dichotomy. This highlights firm behavior and priority of goals as pointers of competitive processes. We apply the concept of goal priority for a firm's line of action to characterize competing, whether primarily towards the customer or first focusing on the activities of another firm. We explore the distinctions between non-competitive, competitive and rivalry firm activity using a case study of exporters and importers of fine wine to Denmark from South Australia. We find that change in the business network is provoked by competitive processes. We conclude with managerial implications and the opportunities for future research.

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