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Competitive Groups As Cognitive Communities: The Case Of The Scottish Knitwear Manufacturers, Joseph F. Porac, Howard Thomas, Charles Baden-Fuller

Research Collection Lee Kong Chian School Of Business

This article explores how the mental models of organizational strategists determine perceptions of competing organizations and responses to competitive conditions. We first outline a cognitive perspective for discussing competitive strategy, and then use this framework to analyse the particular case of the Scottish knitwear industry. We show how the structure of that industry both determines and is determined by managerial perceptions of the environment. We conclude by drawing out a few general implications of our framework for research and theory on competitive strategy.