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Competitive inter‐firm interactions: determinants of divergence versus convergence

C. Carl Pegels (School of Management, State University of New York at Buffalo, USA)
Yong Il Song (School of Management, State University of New York at Buffalo, USA)

Management Decision

ISSN: 0025-1747

Publication date: 1 April 2000

Abstract

This paper is a study of competitive and cooperative interactions among members of a competitive industry group. There are few strategic, tactical or market moves that do not affect competition in any industry. Competitive and cooperative interactions among competitive firms are studied to determine how the reactions of competitors to an initiator of an action cause convergent or divergent patterns. It is hypothesized that the patterns, or cycles, of competitive and cooperative interactions are a function of complexity of the interaction cycle, degree of offensiveness of participants’ moves, action reversibility, previous interaction experience, interaction cycle visibility and response time. An empirical test of the hypothesis revealed that the two most strongly supported hypotheses were: interaction cycle complexity increases the likelihood of interaction cycle convergence, and interaction cycle visibility increases the likelihood of interaction cycle divergence.

Keywords

Citation

Pegels, C.C. and Il Song, Y. (2000), "Competitive inter‐firm interactions: determinants of divergence versus convergence", Management Decision, Vol. 38 No. 3, pp. 194-208. https://doi.org/10.1108/EUM0000000005347

Publisher

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MCB UP Ltd

Copyright © 2000, MCB UP Limited