[Diskussionsbeiträge des Instituts für Management; 2004/24]
Competitive dynamics, organizational learning and institutional theory are used to predict the evolution of competitive action patterns. We develop hypotheses pertaining to the preservation and introduction of competitive actions into firms’ competitive repertoires and the performance effects of such changes. Additionally, the performance effects of action patterns conforming to institutional norms are assessed. We use a data set from the US retail industry to test our model. Our findings suggest that firms preserve actions that were performing well in the past, and they preserve and introduce actions that are highly legitimate. Converging action patterns have negative implications for performance, and conforming to institutional norms affects firm-performance in a U-shaped manner.
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