Action aggressiveness reflects how a firm reacts to temporary competitive advantages. By responding promptly to market demands, firms strengthen their market position and create advantages. Those that can act even faster secure an even stronger competitive position and greater market power. However, there is no guarantee that a competitive advantage gained today will last in the long run. The focus is on the firm’s readiness to take an action, meaning how willing the firm is to engage with competitors and respond quickly. Competitive dynamics is becoming more noticeable across various markets, even those that once seemed stable. From a theoretical perspective, a company's performance is influenced not just by its own strategy, but also by its competitors’ actions and their interactions. The main goal of this study is to explore the link between a company's strategic path and its ability to achieve sustainable growth in rapidly changing environments. Past research often looked at how competitive dynamics impact a company's financial performance, but this paper aims to broaden that perspective. Specifically, this research aims to define and analyze the connection between a firm's behavior in a turbulent market and its competitive advantage, using both financial metrics and performance indicators relative to its main rival. The findings suggest a positive correlation between a company's agility, strategic innovation, and profitability. Essentially, traits like firm agility and strategic innovation are vital for companies to survive, succeed, and maintain their competitive edge in dynamic business environments.
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