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Making Sense in Hypercompetitive Environments: A Cognitive Explanation for the Persistence of High Velocity Competition

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  • William C. Bogner

    (J. Mack Robinson College of Business, Georgia State University, Box 4014, Atlanta, Georgia 30302-4014)

  • Pamela S. Barr

    (J. Mack Robinson College of Business, Georgia State University, Box 4014, Atlanta, Georgia 30302-4014)

Abstract

This paper explores the cognitive aspects underlying industries in hypercompetitive environments. Hypercompetition represents a state of competition with rapidly escalating levels of competition and reduced periods of competitive advantage for firms. In hypercompetitive industries member firms act boldly and aggressively to create a state of competitive disequilibrium. In this paper we explore the particular conditions that managers encounter in making sense of hypercompetitive industries and argue that the nature of these conditions is such that conventional sensemaking frameworks will not work. We then describe the “adaptive sensemaking” practices established in the literature for dealing with temporary turbulence and suggest that in hypercompetition those processes continue indefinitely. We argue that these processes can become institutionalized as standard operating procedures within firms, and as shared recipes within industries, which in turn perpetuates hyperturbulent conditions.

Suggested Citation

  • William C. Bogner & Pamela S. Barr, 2000. "Making Sense in Hypercompetitive Environments: A Cognitive Explanation for the Persistence of High Velocity Competition," Organization Science, INFORMS, vol. 11(2), pages 212-226, April.
    • Handle: RePEc:inm:ororsc:v:11:y:2000:i:2:p:212-226
    DOI: 10.1287/orsc.11.2.212.12511
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    References listed on IDEAS

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