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This study examines opportunities and risks of collective strategies. Some dysfunctional outcomes of collective strategies include their tendencies: to reduce strategic flexibility; to increase the impact of external disturbances; to lower organizational adaptability; and to attract new entrants. A model is developed which provides an integrated analysis of the consequences of collective strategy; it highlights the dialectical relationship between collective and competitive strategies. Possibilities for avoiding or muting the dysfunctions of collective strategies are discussed.
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Bresser et al. (1986) studied this question.
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