Horizontal competition and interorganizational exchange partner selection: An analysis of Major League Baseball player trades

Abstract

This study examines the influence of horizontal competition on interorganizational exchange. Interorganizational competition is a multidimensional construct that can influence exchange in multiple, sometimes countervailing ways. With an analysis of Major League Baseball player trades, we examine the influences of three components of competition—goal conflict, rivalry, and competitive interaction—on interorganizational exchange partner selection. We find that goal conflict reduces the hazard rate of exchange between organizations, but competitive interaction increases it. Moreover, we find evidence that prior exchange moderates the competition–exchange relationship by reducing the perceived risks and information benefits of exchange with a competitor. We do not find evidence that interorganizational rivalry shapes subsequent exchange behavior.