To be different or to be the same when you are a small firm? Competitive interdependence as a boundary condition of the strategic balance perspective

This article deepens the analysis of the strategic balance perspective's boundary conditions through the lens of competitive dynamics, focusing on the particular case of small firms. We propose that competitive interdependence shapes the link between strategic similarity and small-firm performance. Specifically, we examine this boundary condition in terms of competitive asymmetry and market overlap between a small firm and two reference points, namely the industry leader and peers. We find that the effect of strategic similarity differs depending on whether there is competitive asymmetry and on the level of market overlap.