Risk, Religion, and Rivalry: How Religiosity Affects Competitive Intensity in U.S. Firm

Authors

Mara Wilson
Ahmad Hassan

Files

Description

Firms operate within cultural and societal contexts that shape their strategic decisions, with religion being a significant influence. Research shows that religious norms impact managerial decision-making and corporate practices (Chan- Serafin et al., 2013; Weaver and Agle, 2002). Even individuals who do not fully internalize religious values are influenced by local cultural norms, including religion (Spicer & Bailey, 2007). Religion plays a crucial role in shaping culture, which in turn affects economic behavior (Weber, 1905; Guiso et al., 2003). CEOs often look to religious teachings for guidance in navigating the secular business world (McCarthy, 1996; Nash, 2004). However, little research has explored how religiosity affects a firm's competitive intensity, which directly impacts firm performance. In industries with intense competition, firms enhance their market position by initiating competitive actions (Ferrier, Smith, & Grimm, 1999). This study draws on literature from religiosity (e.g., Abdelsalam et al., 2021) and competitive dynamics (e.g., Ferrier et al., 1999) to propose that firms in regions with lower religious adherence are more likely to launch competitive actions. We show that this relationship is driven by risk aversion, making this the first empirical evidence linking religiosity to competitive intensity and its underlying mechanisms.

Publication Date

4-16-2025

Disciplines

Higher Education | Scholarship of Teaching and Learning

Recommended Citation

Wilson, Mara and Hassan, Ahmad, "Risk, Religion, and Rivalry: How Religiosity Affects Competitive Intensity in U.S. Firm" (2025). 2025 Celebration of Student Scholarship - Poster Presentations. 71.
https://scholarworks.moreheadstate.edu/celebration_posters_2025/71