Competitive aggressiveness, community banking and performance

PurposeThe purpose of this paper is to develop and empirically test a conceptualization of competitive aggressiveness (CA), a dimension of entrepreneurial orientation.Design/methodology/approachStructural equation modeling and hierarchical regression are employed on responses from 182 banks in the s...

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Bibliographic Details
Published in:Journal of strategy and management 2020-04, Vol.13 (2), p.221-240
Main Authors: Stambaugh, Jeff, Lumpkin, G T, Mitchell, Ronald K, Brigham, Keith, Cogliser, Claudia
Format: Article
Language:English
Subjects:
Aggressiveness
Competition
Entrepreneurs
Entrepreneurship
Motivation
Multivariate statistical analysis
Posture
Profitability
Proxies
Researchers
Routines
Structural equation modeling
Studies
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Summary:PurposeThe purpose of this paper is to develop and empirically test a conceptualization of competitive aggressiveness (CA), a dimension of entrepreneurial orientation.Design/methodology/approachStructural equation modeling and hierarchical regression are employed on responses from 182 banks in the southwestern US Performance data on the banks are drawn from the US Federal Deposit Insurance Corporation's (FDIC's) Call reports.FindingsThe results indicate awareness, motivation and capability are antecedents of CA, which itself is positively related to increased market share and, in more dense markets, profitability.Practical implicationsAggressive firms exhibit certain routines that can lead to competitive actions, which assists performance in some contexts. Managers who wish to increase (or decrease) their firms' overall competitive posture can encourage (or discourage) employees from performing competitive routines such as monitoring their rivals or talking about their rivals' strategies.Originality/valueBy developing CA' conceptualization, the study advances the understanding of the antecedents of competitive behavior and makes it easier to study competition in smaller firms.
ISSN:1755-425X
1755-4268
DOI:10.1108/JSMA-03-2019-0033