SPEED, STEALTH, AND SELECTIVE ATTACK: HOW SMALL FIRMS DIFFER FROM LARGE FIRMS IN COMPETITIVE BEHAVIOR.

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Abstract
This study examined how small firms differ in their competitive behaviors from their large rivals in an industry and explored the implications of differences for performance. Data on competitive moves and countermoves exchanged by major U.S. airlines supported the predicted differences. The small airlines more actively initiated competitive challenges and were speedy but low-key, even secretive, in executing their actions. They were also less likely and slower to respond when attacked and, contrary to expectations, their responses were more visible than those of their larger opponents. Deviations from group norms hurt performance for both the large and small firms.

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