Dynamics of Competition and Survival

AutorRenata Peregrino de Brito - Luiz Artur Ledur Brito
CargoIbmec Rio de Janeiro - Fundação Getúlio Vargas, EAESP/FGV
Available online at
http://www.anpad.org.br/bar
BAR, Rio de Janeiro, v. 11, n. 1, art. 4,
pp. 64-85, Jan./Mar. 2014
Dynamics of Competition and Survival
Renata Peregrino de Brito
E-mail address: renatap.brito@gmail.com
Ibmec Rio de Janeiro
Av. Pres. Wilson, 118, Rio de Janeiro, RJ, Brazil.
Luiz Artur Ledur Brito
E-mail address: luiz.brito@fgv.br
Fundação Getúlio Vargas EAESP/FGV
Fundação Getulio Vargas EAESP, R. Itapeva, 474, 01332-000, São P aulo, SP, Brazil.
Received 11 December 2012; received in revised form 26 June 2013 (this paper has been with the
authors for two revisions); accepted 4 July 2013; published online 2nd January 2014.
Dynamics of Competition and Survival 65
BAR, Rio de Janeiro, v. 11, n. 1, art. 4, pp. 64-85, Jan./Mar. 2014 www.anpad.org.br/bar
Abstract
Along time, increa sing competitiveness is said to have shortened firms’ life spans; however, for those who
managed to survive, the question relies o n what are the best competitive positions. The question is whether firms
can sustain a competitive advantage for longer periods. To answer it, t his article analyzes the combined
performance (profit and growth) trajectories of 993 firms along two decades, comparing their competitive
dynamics with the overall market. W e use American COMPUSTAT data (1990-2009), d ecomposing the
individual firm effect in hierarchical modeling and segregating t he different strategic c hoices and transitions
between advantage, disadvantage and parity along that period. The results reveal that most firms are unable to
maintain advantage/disadvantage for longer periods. Moreover, the comparison bet ween the 993 long-lived firms
and the overall database reveals a more conservative profile of competitiveness of the former, suggesting
different strategies between the groups.
Key words: competitiveness; survival; performance; multilevel analysis.

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