Strategy and competitor cognition: an exploratory study of cognitive maps of competition held by 'inside' and 'outside' industry actors

Abstract

 The study exam inesperceived similarities/dissimilarities between mental models o f com petition o f industry 'insiders' (managers of 
competing organizations) and industry 'outsiders' (e.g. consultants an d analysts). The mental models of competition of industry  actors' o f retail ban kin g w ere elicited using the full context form o f the repertory grid. Results indicate the existence of homogeneous  mental models of competitive space between 'industry outsiders' and 'industry insiders'. These findings support 'social constructionist' explanations o f competitive structures in markets an d industries. Interpreting the results, we argue (a) that  managers can rely on 'industry outsiders' assessments o f competitive space and (b) managers can actively interact with 'industry outsiders' to ensure that beliefs o f all industry participants cohere on a similar platform , thus creating less ambiguous marketfields.