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Competitive blind spots in an institutional field

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  • Desmond Ng
  • Randall Westgren
  • Steven Sonka

Abstract

Unlike institutional or macro‐cultural explanations of competition, competition need not be viewed as a shared social reality. Instead, competition can be interpreted differently by multiple stakeholders of a value chain. However, due to managerial blind spots, such various interpretations of competition are less than apparent to management. Yet explanations of such blind spots are not well documented. Hence, to explain such blind spots, a conceptual model based on overconfidence biases is developed in which managers develop a ‘self‐centered’ view of competition that blinds them from the competitive beliefs of their value chain customers. Differences in competitive beliefs, thus, arise and are argued to contribute to such managerial blind spots. Furthermore, to empirically examine such managerial blind spots, the competitive perceptions held by various members of a swine genetics value chain were surveyed. Through cluster and MANOVA analyses, this study shows that, unlike institutional/macro‐cultural explanations of competition, these members do not share a common consensus of the key attributes and groupings of competition. The implications and contributions of this study are also discussed. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Desmond Ng & Randall Westgren & Steven Sonka, 2009. "Competitive blind spots in an institutional field," Strategic Management Journal, Wiley Blackwell, vol. 30(4), pages 349-369, April.
    • Handle: RePEc:bla:stratm:v:30:y:2009:i:4:p:349-369
    DOI: 10.1002/smj.741
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    Cited by:

    1. Richard A. Hunt & David M. Townsend & Elham Asgari & Daniel A. Lerner, 2019. "Bringing It All Back Home: Corporate Venturing and Renewal Through Spin-ins," Entrepreneurship Theory and Practice, , vol. 43(6), pages 1166-1193, November.
    2. Hadida, Allègre L. & Paris, Thomas, 2014. "Managerial cognition and the value chain in the digital music industry," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 84-97.
    3. Wijnberg, Nachoem M., 2011. "Classification systems and selection systems: The risks of radical innovation and category spanning," Scandinavian Journal of Management, Elsevier, vol. 27(3), pages 297-306, September.
    4. Desmond Ng & Kerry Litzenberg, 2019. "Overcoming disciplinary divides in higher education: the case of agricultural economics," Palgrave Communications, Palgrave Macmillan, vol. 5(1), pages 1-7, December.
    5. Stefano Elia & Marcus M. Larsen & Lucia Piscitello, 2019. "Entry mode deviation: A behavioral approach to internalization theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(8), pages 1359-1371, October.
    6. Chen, Tianxu & Tribbitt, Mark A. & Yang, Yi & Li, Xiaomei, 2017. "Does rivals' innovation matter? A competitive dynamics perspective on firms' product strategy," Journal of Business Research, Elsevier, vol. 76(C), pages 1-7.
    7. Shepherd, Dean A. & Haynie, J. Michael & McMullen, Jeffery S., 2012. "Confirmatory search as a useful heuristic? testing the veracity of entrepreneurial conjectures," Journal of Business Venturing, Elsevier, vol. 27(6), pages 637-651.
    8. Desmond Ng, 2021. "Balancing Agency with Structure: Institutional Entrepreneurship as an Embedded Discovery Process," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 7(2), pages 147-164, July.
    9. König, Andreas & Schulte, Martin & Enders, Albrecht, 2012. "Inertia in response to non-paradigmatic change: The case of meta-organizations," Research Policy, Elsevier, vol. 41(8), pages 1325-1343.
    10. Guido Palazzo & Franciska Krings & Ulrich Hoffrage, 2012. "Ethical Blindness," Journal of Business Ethics, Springer, vol. 109(3), pages 323-338, September.

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