“…Interviews and biographical accounts suggest modern business executives are applying the same principles as well. For example, Fuld () notes that when asking executives if they agreed with statements to the effect that “CEOs not only can, but should, be watching their counterparts closely, assessing their strengths, weaknesses and predilections, and developing counter‐measures accordingly,” findings indicate the claim “was not only true but almost an understatement.” Fuld's interviews, coupled with executive biographies (e.g., Ilian, ) suggest these decisionmakers actively gather information about their rivals' likely actions and responses and also, to very high degrees, base competitive maneuvers upon that information as well. Despite this practical reality, however, neither upper echelons theory (which articulates the role of executives in firm action; Hambrick & Mason, ) nor competitive dynamics research (which focuses on understanding firms' competitive actions vis‐à‐vis rivals; Ketchen, Snow, & Hoover, ; Smith, Ferrier, & Ndofor, ) advance theoretical explanations of how this phenomenon unfolds.…”