Low-performing firms typically underestimate their competitor's strengths and overestimate their own firm's strengths.

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This is a common bias known as the "illusory superiority" or "Dunning-Kruger effect". Low-performing firms often lack the capability to accurately assess their own performance and the performance of their competitors, leading them to have an inflated sense of their own strengths and a limited understanding of their competitors' strengths.

Low-Performing Firms Typically Underestimate Their Competitor's Strengths and Overestimate Their