Competitive Rationales: Beneath the Surface of Competitive Behavior

Area of Science:

• Business Strategy
• Organizational Behavior
• Competitive Dynamics

Background:

• Competitive dynamics research traditionally examines rivals' ability and likelihood to act.
• Focus has been on indirect factors like action characteristics, firm attributes, and context.
• A gap exists in understanding the specific triggers for initiating competitive actions.

Purpose of the Study:

• To explore the specific reasons (rationales) why rivals initiate competitive actions at particular times and situations.
• To introduce and conceptualize 'competitive rationales' from the philosophy of action literature.
• To develop a framework for understanding the types and scope of these rationales.

Main Methods:

• An inductive, multicase study was conducted.
• Data comprised over 800 discrete tactical decisions from 9 professional basketball coaches across 15 games.
• Analysis focused on identifying and categorizing the underlying reasons for these decisions.

Main Results:

• Most competitive rationales were not directly rivalrous.
• Key rationales were organizational (resource optimization, strategic consistency, reputation) and social (relationship management).
• Rationales extended beyond immediate competition to encompass longer-term strategic outcomes and stakeholders.

Conclusions:

• Competitive rationales are complex and often subtle, challenging rivals' awareness.
• Motivation influences both action and forbearance, not just action initiation.
• Capability is both a prerequisite for and a result of competitive actions, reshaping the AMC model.