The purpose of this study is to integrate research on competitive and cooperative repertoires and to simultaneously assess the direct, indirect and curvilinear effects of competitive and cooperative action repertoires in relation to firm performance.
The analyses are conducted using a longitudinal dual-industry sample of publicly traded firms, including over 6,500 competitive actions and 750 cooperative actions. The authors use fixed effects (FE) regression models to test the diminishing returns of action volume on firm performance as well as the moderating effects of action diversity.
The results suggest that increasing competitive and cooperative actions yields diminishing returns in relation to firm performance. Furthermore, in the context of competitive action repertoire diversity, increased diversity magnifies the diminishing returns of competitive action volume on firm performance.
The study provides a firm-level conceptualization of overall competitive and cooperative repertoires to extend the literature on competition and cooperation beyond dyadic interactions or structural determinants of competitive and cooperative actions.
