The Effect of Competitive Threat over Response Behaviour of Top Management Team

Abstract

The subject of this paper is to scrutinize the effects of competitive threat on reaction attitude of top management team. Competitive threat from a given rival would probably block the focal firm and affect the be- havior of taking hostile attitude. Other conductive options of the focal firm against the rival might be forbearance and efforts to get rid of the competition. This research has tried to denominate perceived threat of competition. Because the managers, shareholders and industry stakeholders assess competitors by the effects of four factors: rival’s attack volume, capturing attention, relative scale, and similarity. This study also attempts to find the influ- ence of competitive threat on strategic decisions and implementations. The research results indicate that competi- tive threat not only directly affects the volume of attacks to rival but also ends up with indirect effects such as val- ue innovation.