Seeing Through the Eyes of a Rival: Competitor Acumen Based on Rival-Centric Perceptions

Abstract

This research advances the construct of competitor acumen, or the extent to which a focal firm's assessment of a given rival's prioritization of its competitors reflects the rival's own view. We propose that the way a firm is embedded within market-engagement relationships shapes the firm's competitor acumen. We test our propositions using data collected from the U.S. airline industry and highlight the significance of competitor acumen by showing its impact on a focal firm's market share gain relative to a rival. The findings contribute to competitive dynamics research and suggest a new approach to competitor analysis based on rival-centric perceptions.