Competitive Analysis and New Venture Performance: Understanding the Impact of Strategic Uncertainty and Venture Origin*

Abstract

Effective competitive analysis (CA) is important for success in today's marketplace. CA may be particularly important to new ventures that may lack experience in their industries and knowledge of their rivals. Using survey data from 228 new ventures, this study concludes that the formality, comprehensiveness, and user orientation of CA activities are positively associated with new venture performance. Strategic uncertainty and venture origin also significantly moderate the relationship between CA and new venture performance.