Competitive empathy: sharing values and strategies with rivals

Abstract

Purpose: This study aims to introduce the original idea of competitive empathy, to go beyond competitive advantage and help managers and entrepreneurs strategize with a shared purpose. Design/methodology/approach: This study builds on and originally combines seminal works on empathy in the fields of psychology and management, which are extended to embrace the notion of empathy toward competitors. Empirical research leveraged different methods, including “class as a lab” research; field studies; and collaborative research. Findings: To support managers’ and entrepreneurs’ effort to be more empathic and emotionally intelligent when dealing with competitors, the study introduces the “Competitive Empathy Catalyst” tool, which identifies three layers – namely, orientation, execution and foundation – where to look for common ground between your company’s and your competitors’ strategy. A set of principles that should inspire managers’ strategic behavior and action to enable competitive empathy are also proposed: search for a non-conflicting identification with competitors and avoid “egotism”; adopt “perspective-taking”; practice “mirroring”; aim at the “greater good”; leverage “vicarious learning” and apply “cautionary trust.” Practical implications: Looking at competitors from a different angle and applying competitive empathy as a strategic device can uncover a plethora of opportunities benefiting the company’s strategy and ability to create, deliver and capture value. Originality/value: Empathy in management theory and practice has been traditionally associated with interaction with customers, employees and stakeholders. Competitive empathy counterintuitively applies empathy to a category of players that were largely left out from the discussion, that is, competitors.