Academy of Management Proceedings · 2009 · 11 citations · 0 references
BusinessStrategic ManagementStrategyBankingBusiness StrategyCompetitive StrategyCompetitor AnalysisIndustry RivalryRivalry IntensitySustained Competitive AdvantageAggressive CompetitionAggressive Market BehaviorCompetitive PressuresDensityFinancial Performance ManagementIndustry Rivalry AnalysisMarket ShareMarket Share Growth
The article presents research on competition. The question of what leads companies to become more aggressively competitive, creating business practices which directly target rival firms, is considered. It is hypothesized that competitive aggressiveness has a positive relationship to financial performance, a relationship which can be modified by factors such as the costs of such a strategy or market density. Community banks in Texas, New Mexico and Oklahoma were examined. It was found that in less dense markets, market share growth did not translate into increased profitability.