Sleeping with the enemy: The moderating effect of cooperation on competitive dynamics from collective identity perspective
ISSN: 0025-1747
Article publication date: 1 July 2018
Issue publication date: 8 January 2019
Abstract
Purpose
This paper highlights cooperation as an important moderating condition of competitive action and response. Drawing on a new perspective of collective identity on competitive dynamics, the purpose of this paper is to stress the impacts of market commonalities and resource similarities on competitive actions and responses and focus on the moderating effect of cooperation on the relationships mentioned above.
Design/methodology/approach
This study employs logistic regression analysis to test the hypotheses in the Taiwanese flour industry at the period 2002–2005.
Findings
The results indicate market commonalities and resource similarities have a negative effect on the likelihood of a price-competitive action and a price-competitive response. Moreover, the level of cooperation among firms moderates the relationships among market commonalities, resource similarities, price-competitive actions, and price-competitive responses.
Practical implications
To understand and predict competitive behavior help firms to control and avoid unnecessary rivalry and therefore maintain mutual forbearance with competitors.
Originality/value
This study provides a new angle on cooperation-level analysis, contributing the use of collective identity theory to analyze the moderating effects of cooperation on competitive actions and responses.
Keywords
Acknowledgements
The authors gratefully thank the anonymous referees for their insightful and constructive suggestions on how to improve an earlier manuscript of this article. The authors wish to thank Shao-Fu Hung and Jing-Yi Wei for their excellent support on data collection. Authors also acknowledge the Ministry of Science and Technology, Taiwan for providing financial support for this research under grant MOST 104-2918-I-126-001, MOST 106-2410-H-155-049-SSS, and NSC 100-2410-H-035-002-MY2.
Citation
Huang, M.-C. and Chang, B.-J. (2019), "Sleeping with the enemy: The moderating effect of cooperation on competitive dynamics from collective identity perspective", Management Decision, Vol. 57 No. 1, pp. 211-228. https://doi.org/10.1108/MD-01-2017-0054
Publisher
:Emerald Publishing Limited
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