Collective Strategy Development

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Matching Collective and Competitive Strategies Author(s): Rudi K. F. Bresser Source: Strategic Management Journal, Vol. 9, No. 4 (Jul. - Aug., 1988), pp. 375-385 Published by: John Wiley & Sons Stable URL: Accessed: 03/05/2010 19:55 Your use of the JSTOR archive indicates your acceptance of JSTOR 's Terms and Conditions of Use, available at JSTOR 's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher…show more content…
Business firms can use both competitive and collective strategies to manage their interdependencies. The literature distinguishes three major dimensions of competitive strategies: price, promotional, and product competition strategies (Khandwalla, 1981). Competitive strategies manage interdependence successfully if they result in advantageous competitive positions, thus forestalling interdependence and reducing decisionmaking uncertainty (Pennings, 1981). For Received 20 October 1986 Revised 21 July 1987 ? 0143-2095/88/040375-11$05.50 1988 by John Wiley & Sons, Ltd. 376 R. K. F. Bresser Table 1. Coordination mechanisms for collective strategies Coordination mechanism Regulative legislation Contracting Mergers Joint ventures Interlocking directorates Trade associations Collusion and industry leadership Degree of formalization High High High High Moderate Moderate Low instance, product differentiation can create a protected domain for a focal organization with boundaries hard to penetrate by other competitors. However, in complex business environments interdependencies often are obscured from focal organizations so that individually coping with the dynamics of these environments becomes problematic (Emery and Trist, 1965). In these situations, collective strategies can supplement competitive strategies as a means of coping with the variation of interdependent environments (Astley and Fombrun, 1983a). CONCEPTIONS STRATEGY OF COLLECTIVE CONFLICTS
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