This paper explores competitive balance and the factors influencing a
firm's decision to adopt competitive or cooperative actions to maintain
equilibrium within a triadic structure. Drawing upon the competitive dynamics
theory and structural balance theory, we empirically tested our hypotheses
using data collected from global semiconductor firms. We predicted how a firm's
actions are shaped by its perception of balance, influenced by the current
competitive and cooperative situation within a triad relationship. Our findings
indicate that when a focal firm perceives lower competitive tension within the
triadic structure, it tends to engage in cooperative actions with its partner's
partner and competitor's competitor in the future. Conversely, when a focal firm
perceives higher competitive tension, it is more likely to adopt competitive
actions, such as competing with its partner's competitor and competitor's
partner in the future. Our results provided a new avenue for studying the
formation of competitive and cooperative relationship.
