International Journal of

Business & Management Studies

ISSN 2694-1430 (Print), ISSN 2694-1449 (Online)
DOI: 10.56734/ijbms
Competitive Dynamics in Triadic Structures: A Study Global Semiconductor Firms


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.