Toward a Social Practice Theory of Relational Competing

Abstract

This paper brings together the competitive dynamics and strategy-aspractice literatures to investigate relational competition. Drawing on a global ethnography of the reinsurance market, we develop the concept of micro-competitions, which are the focus of competitors’ everyday competitive practices. We find variation in relational or rivalrous competition by individual competitors across the phases of a micro-competition, between competitors within a micro-competition, and across multiple micro-competitions. These variations arise from the interplay between the unfolding competitive arena and the implementation of each firm’s strategic portfolio. We develop a conceptual framework that makes four contributions to: relational competition; reconceptualizing action and response; elaborating on the awareness-motivation-capability framework within competitive dynamics; and the recursive dynamic by which implementing strategy inside firms shapes, and is shaped by, the competitive arena