The Complexity of the Competitive Repertoire and Firm Performance

Abstract

Complexity of competitive repertoire is the ability of a firm to undertake a wider range of diverse competitive moves than its competitors. Firm undertaking diverse competitive moves can enhance capabilities and potentially achieve competitive advantage and superior performance, especially in environment with uncertainty and volatility characteristics. Besides, complexity of competitive repertoire gives stakeholders a series of information on the firm characteristics, its resources and/or specific know-how for intense rivalry. The goal of this paper is to provide theoretical and practical overview on the construct of complexity of competitive repertoire and the method of its computing. In addition, relationship between complexity of the competitive repertoire and the firm performance on a sample of seventeen Croatian firm dyads are analyzed. Results show that the higher level of complexity in a competitive repertoire has a positive effect on firm performance.