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Although interfirm rivalry as a determinant of firm behavior and performance has been extensively discussed in the literature, there has been little examination of the influence of rivalry that is not current but can potentially unfold in the future. This study investigates the effect of anticipated rivalry on the relationship between crucial firm resources and firm performance. Firm resources are measured by assessing the extent of human capital and organizational capital that a firm possesses and the extent to which held partnerships matches firm’s expectations (partnership quality). Anticipated rivalry is hypothesized to strengthen the relationship between firm resources and performance. Data for this study were obtained from the managers of 105 Indian business process outsourcing (BPO) provider firms who responded to a specially-developed questionnaire. Our empirical analysis suggests that higher anticipated rivalry results in stronger associations of human capital and organizational capital with firm performance but weaker association of partnership quality with performance. Lower anticipated rivalry results in exactly opposite effects. We note practical implications of this study and identify areas of future inquiry.