Events

Dr. Tianxu Chen
Associate Professor
John Chambers College of Business and Economics
West Virginia University

ABSTRACT

Drawing on the attentional perspective and the awareness-motivation-capability framework in competitive dynamics, this study provides a theoretical framework linking a focal firm’s public display of executive attention breadth to a rival’s subsequent volume of competitive actions. We argue that a wider executive attention breadth displayed by the focal firm will motivate its rival to engage in more aggressive attacks. We also argue that the focal firm’s level of visibility and market dominance will moderate the impact of its executive attention breadth on a rival’s competitive actions. Based on a unique sample of competitor dyads from duopoly industries composed of Standard and Poor’s (S&P) 1500 firms, we found a positive association between a focal firm’s expressed executive attention breadth and its rival’s subsequent volume of competitive actions. We also found that when a focal firm’s visibility is high, the relationship between the focal firm’s expressed executive attention breadth and a rival’s action volume is stronger; whereas, when a focal firm’s market dominance is high, the relationship between the focal firm expressed executive attention breadth and a rival’s action volume is weaker.