In fast-paced markets, the speed of action is critical to gaining competitive advantage. Yet, who will act quickest to rise to emergent challenges and opportunities? We investigate this question of competitive dynamics by combining behavioral and resource-based theories of the firm to explore drivers particularly relevant in an emerging economy context. Our empirical study based on a survey in China finds that strategic growth actions are taken faster by firms with underperforming market share, strong technological capabilities and strong leader strategic competences. In contrast, strategic joint actions with other businesses are employed more speedily by firms under financial pressures but with strong leader strategic competences.
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- Behavioral theory of the firm
- Competitive dynamics
- Resource-based view
- Speed of action