Behavioral antecedents of firm's ego-network competitiveness: The case of the global pharmaceuticals

Abstract

Intra-industry alliance networks provide a firm with both collaborative opportunities and competitive challenges. When forming alliance networks within a particular industry, firms need to consider to which extent they compete in the same markets with their alliance network partners, who are also their industry peers. However, previous literature has not exhaustively addressed the antecedents of a firm's competitive behavior with their alliance network peers – i.e., a phenomenon we label ego-network competitiveness. This study draws on extensive panel data from the top global pharmaceuticals to examine this question. Combining behavioral and network perspectives, we test two competing hypotheses on how ego-network competitiveness varies relative to performance feedback and whether structural prominence moderates this relationship. Our results show that performance above and below aspirations increases ego-network competitiveness through high-intensity responses (i.e., problemistic and slack search). We also find that performance above aspirations increases ego-network competitiveness for firms with high structural prominence.