78 research outputs found

    When multinationals choose locations, consumers and competitors matter

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    Nicole Adler and Niron Hashai create a predictive tool that incorporates rivalry and consumer preference

    Multimarket competition and alliance formation

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    How does competition drive cooperation? To shed light on this question, we examine the association between multimarket competition (MMC) and the formation of horizontal alliances. Early research has focused on the implications of MMC for competitive pressure, market entry or exit, and firm performance. It has argued that MMC facilitates mutual forbearance, which establishes implicit cooperation. Recent research reveals that MMC between two rivals increases their propensity to form a joint alliance, assuming alignment between implicit and explicit cooperation. In turn, we shift focus from the dyad to the firm, and examine how explicit cooperation substitutes for implicit cooperation. We suggest that mutual forbearance emerges only at high levels of MMC, whereas at low levels, horizontal alliances mitigate the competitive pressure associated with increasing MMC. Once mutual forbearance is established, implicit cooperation substitutes for explicit cooperation, resulting in an inverted U-shaped association between MMC and the formation of horizontal alliances. We further suggest that as firms grow, their internal assets deter rivals, so that firm size mitigates the reliance on mutual forbearance and weakens the association between MMC and the formation of horizontal alliances. Panel data on 242 US software firms during 1990–2001 support our conjectures

    Not-invented-here syndrome

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    The not-invented-here-syndrome (NIHS) can be broadly defined as a bias against knowledge and ideas that cross organization or unit boundaries. As a consequence, outside knowledge and ideas are rejected or underused simply because their source is external to the organization or unit. The notion of NIHS has been widely applied to a variety of contexts, including knowledge transfers within multinational enterprises (MNEs)

    Unraveling the Relationships Between Internationalization and Product Diversification Among the World's Largest Food and Beverage Enterprises

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    This chapter examines the interrelationships between internationalization and product diversification among the world's l35 largest food and beverage enterprises. Based on the argument that food and beverage enterprises enjoy economies of scope when moderately diversifying into new countries and product areas, but encounter resource constraints when extremely diversified and internationalized, we expect to find an inverted U-shaped relationship between the two strategies. Nevertheless, the authors find that the relationships between the two strategies show both an inverted U-shaped (when geographic diversification is the dependent variable and product diversification the independent one) and a U-shaped pattern (when product diversification is the dependent variable and geographic diversification the independent one). These results imply that the relationships between internationalization and product diversification among food and beverage enterprises are more complex than currently conceived.Peer reviewe

    National Culture

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    International strategy scholars continue to use formulations of national culture to predict firms’ major choices about products and markets and the success of these choices within different nations and across their borders. When studying more than a handful of countries, scholars predominantly draw from models that theorize culture dimensions and provide dimensional scores for nations. When studying firms in smaller numbers of nations, scholars sometimes subjectively interpret configurations of national culture differences. Here, we focus on applications of national culture dimensions, while also referring interested international strategy scholars to alternatives to culture dimensions
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