INTERDEPENDENCE AND THE SOCIAL STRUCTURE OF RIVALRY

Outcome interdependence predisposes firms to simultaneously cooperate and compete. Hence, it may shape the social structure of rival y. Outcome interdependence may stem from similarities in (a) types of suppliers/buyers, (b) resources, (c) geographic catchment areas, and (d) strategic beliefs of managers. A QAP canonical correlation analysis links multidimensional indicators of interdependence to multiplex ties between organizations. A study of banks in Illinois revealed that geographic proximity is the most important factor driving competition and cooperative alliances. However, certain alliances (e.g., correspondent banking) allow banks to transcend the constraints of this geographic fragmentation. Implications for the relevance of social capital and structural holes are discussed. 3When managers contemplate strategic actions, they need to know (a) which firms are likely to respond and (b) what form that response will take. These practical concerns of managers also reflect two basic research questions addressing the emerge t social structure of rivalry within an industry. This paper explores a variety of factors that might shape the interactions among rival firms within an industry