Managerial perceptions of competition in knitwear producers

Economist’s conceptualisations of managers as rational utility‐maximising beings stands in contrast to cognitive models which see managers as possessing limited and incomplete knowledge which they use to “generate” subjective interpretations and assumptions about competitive strategy and rivalry. Using data from interviews with knitwear producers in the Shetland Isles, Scotland, discusses how perceptions of competition are enacted through social interaction between knitwear producers. In addition to supporting the existence of industry groups, these data suggest that this process occurs at a deeper level of analysis, limiting perceptions of competition at both industry and individual levels. Discusses how membership of a trade association can facilitate marketing and cooperation but may, in the process, inadvertantly constrain managers’ ability to conceptualise and respond to changing market conditions. The implications of these issues for strategic planning are considered.