The evolving patterns of competition after deregulation: the relevance of institutional and operational factors as determinants of rivalry

In this research, we apply an ecological model of competition to analyze the effect of deregulation on within industry competitive patterns. Particularly, we identify organizational forms within the population according to two different perspectives: an operational one and an institutional one. We argue that deregulation influences the relative importance of each of these dimensions at determining the set of firms that can be considered direct competitors, and the intensity with which they compete. Our findings show that the use of these two perspectives is of utmost importance to understand the evolution of competition in contexts where deregulation takes place. As our arguments predict, we show that, during the regulated period, competition was based on institutional definitions of organizational forms. However, after deregulation, competition progressively focused on operational definitions of organizational form. Our findings confirm the relevance of deregulation at shaping competitive interdependences within an industry.