engleski

Cognitive Explanation of Hypercompetitive Behaviour

In the last two decades, process of globalization, flourishing of capitalism, privatization and deregulation, as well as the wave of technological innovations led to a significant restructuring of the economy. Speed is priority in today's business world. Firms are able to react on moves of competitors more and more quickly ; managers have less time to make decisions, while understanding moves of competitors and their activities is becoming increasingly difficult. Many argue that the age of fast growing competition, or hypercompetition, is result of these trends. Hypercompetition represents a competition state with rapidly escalating levels of competition and changing competitive advantage nature. The main goal of tha paper is to explore the cognitive aspects of industries that operate in hypercompetitive environments in Croatia. The research question of this paper is «Could this processes of sensemaking be institutionalized as standard operating procedures within the firms that in turn perpetuates hyperturbulent conditions?». Thus, the particular condition that managers encounter in making sense of hypercompetive industries will be examined. That will show that the conventional sensemaking practices won't work in such conditions. To act effectively under such circumstances as well as building new understanding of the environment, managers must engage in «adaptive» sensemaking processes. Therefore, the literature review of the practices to adaptive sensemaking for dealing with temporary turbulence from will be described.

Hypercompetitive environments; cognition; sensemaking; strategy formulation; competition; competitive advantage

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