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- W214731305 abstract "Although interfirm rivalry as a determinant of firm behavior and performance has been extensively discussed in the literature, there has been little examination of the influence of rivalry that is not current but can potentially unfold in the future. This study investigates the effect of anticipated rivalry on the relationship between crucial firm resources and firm performance. Firm resources are measured by assessing the extent of human capital and organizational capital that a firm possesses and the extent to which held partnerships matches firm's expectations (partnership quality). Anticipated rivalry is hypothesized to strengthen the relationship between firm resources and performance. Data for this study were obtained from the managers of 105 Indian business process outsourcing (BPO) provider firms who responded to a specially-developed questionnaire. Our empirical analysis suggests that higher anticipated rivalry results in stronger associations of human capital and organizational capital with firm performance but weaker association of partnership quality with performance. Lower anticipated rivalry results in exactly opposite effects. We note practical implications of this study and identify areas of future inquiry. Introduction The question of how rivalry among business enterprises may affect corporate behavior and performance has always captured the attention of executives and management scholars. Interfirm rivalry - the extent to which firms compete against each ouier tiirough actions and reactions - can influence firms' competitive positioning, profitability and even long-term survival. Prior research suggests that interfirm rivalry as an industry-level attribute emanates from rivals' competitive moves, can vary in nature and intensity, and may have crucial bearing on business performance and competitive advantage (Chen, 1 996; Schul et al., 1995; Young et al., 2000). Studies have also been shown that rivalry may have important implications for organizational structure (Vroom, 2006), managerial incentives (Vroom and Gimeno, 2007) or strategy formulation (Jayachandran et al., 1999). The multifaceted consequences of interfirm rivalry drive most executives to comprehend this force in the best possible manner and determine how it may impact the performance of enterprises they manage and lead. An unexplored area in the related body of literature is the role that rivalry plays in influencing the relationship between a firm's resources and business performance. Precisely, there has been no examination of how interfirm rivalry may impact the manner how important resources determine firm performance. Further, although prior research has mostly examined interfirm rivalry as competitive intensity perceived currently, there has been scant attention to competition that may occur at a later period in time. This is surprising as most business executives spend considerable resources in trying to predict the industry environment and ascertain how future rivalry among industry players, particularly from the new entrants, may arise and affect resource utilization and business performance (Bergman and Rudholm, 2003; Chen et al., 2007; Furrer and Thomas, 2000). This paper attempts to fulfill this research gap by analyzing how anticipated rivalry, defined as the perception of interfirm rivalry that does not exist in the present timeperiod but is apprehended to unfold in the future, impacts the effect of three crucial organizational resources - human capital, organizational capital and partnership quality - on firm performance. We conjecture that there would be differences in the nature of resource-performance associations among firms that anticipate varying levels of rivalry: high versus low. We develop and test our research hypotheses using a sample of firms in the Indian business process outsourcing (BPO) industry. This particular setting is appropriate for our study as the industry is relatively new, growing rapidly and apparently current interfirm rivalry does not seem to be a concern as there is enough business from overseas clients, primarily from the U. …" @default.
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- W214731305 date "2008-04-01" @default.
- W214731305 modified "2023-10-17" @default.
- W214731305 title "Anticipated Rivalry as a Moderator of the Relationship between Firm Resources and Performance" @default.
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