Rivalry within strategic groups and consequences for performance: the firm‐size effects

Abstract

SpainOur study examines how, in a given industry, rivalry functions within strategic groups defined according to the size of their member firms and how this rivalry affects performance. We hypothesize that, owing to several forms of group-level effects including market power, efficiency, differentiation, and multimarket contact, strategic groups that comprise smaller firms will exhibit both increased rivalry and decreased performance compared with strategic groups that comprise larger firms. We test our hypotheses by estimating the effect of group-level strategic interactions (i.e., conjectural variations) on firm performance. Ultimately, our analysis of empirical data on loans in the Spanish banking industry demonstrates that increased rivalry and decreased performance indeed characterizes firms belonging to a strategic group that comprises smaller firms. 1289 3 This is a contingency explanation of rivalry: internal fit (i.e., strategy and structure or strategy and organization activities) and external fit (i.e., organizational structure and contextual environment or strategy and environmental needs) enhance firm performance (Peteraf and Reed, 2007). factors that explain intragroup rivalry, wherein group-level effects determine firm performance.

Configurations of Governance Structure, Generic Strategy, and Firm Size: Opening the Black Box of Value Creation In International Joint Ventures

“…Thus, size permits larger firms to possess more organizational slack (Damanpour, ; Pfeffer and Salancik, ) while concurrently allowing them to better leverage potential scale and scope economies (Ellis et al ., ). This facilitates a strategically more aggressive/competitive conduct (Mas‐Ruiz and Ruiz‐Moreno, ; Smith et al ., ) for larger JV partners (Merchant, ). Implicitly, larger firms have a broader range of competitive strategies available to them, yielding these (larger) firms ‘…better prospects for profitability’ (Wright, : 100).…”

Koşul Bağimlilik Kurami Kapsaminda Örgüt Büyüklüğü-Örgüt Yapisi İli̇şki̇si̇ni̇n Yazinsal Açidan Eleşti̇rel Bi̇r Değerlendi̇rmesi̇

“…Nitekim daha yakın dönemli araştırmalarında Storey vd. (2008), ÖB ile biçimselleşme derecesi, iş tatmini, işgörenlerin işe yönelik değerlendirmeleri arasındaki ilişkiyi; Mas-Ruiz ve Ruiz-Moreno (2011: 1286, ÖB ile grup davranışı ve buradan hareketle örgütsel performans ve strateji ilişkisini; Grinyer ve Yasai-Ardekani (1981: 471), ÖB'nin ÖY-strateji ilişkisindeki aracı rolünü incelemişlerdir. Farklı örgüt tiplerinde yapılacak araştırmaların da konuya farklı yönlerden derinlik kazandıracağı açıktır.…”

Information- and rivalry-based perspectives on reactive patent litigation strategy

“…While the competitors' strategy and market position in a strategic group have impacts on a firm's decision-making based on the rivalry theories (Fiegenbaum & Thomas, 1995;Mas-Ruiz & Ruiz-Moreno, 2011;McGee & Thomas, 1986), asymmetric information among competitors also influences the manager's decision making (Brodbeck, Kerschreiter, Mojzisch, & Schulz-Hardt, 2007;Mas-Ruiz, Ruiz-Moreno, & Ladrón de Guevara Martínez, 2014;Özer & Wei, 2006).…”