Rivalry Between Multinational Enterprises: An Event History Approach

Tieying Yu · Albert A. Cannella

246 citations0/0 files storedAcademy of Management Journal

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International Business and FDI Innovation and Knowledge Management International Student and Expatriate Challenges

Abstract

Our study investigates rivalry between multinational enterprises (MNEs) in host country markets. Drawing on the awareness-motivation-capability perspective, we show how the speed of an MNE's response to a rival's attack is influenced by resource-related factors, including distance, government constraints, and subsidiary control, and by market-related factors, including initiating country importance, location of the response in the initiating country, and multimarket contact. We provide a new conceptualization and empirical approach for studying rivalry between MNEs. Additionally, our theory and evidence imply that important constraints on MNE actions in host country markets go well beyond the constraints faced in domestic competition.

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References

1991Firm Resources and Sustained Competitive Advantage 1990Institutions, Institutional Change and Economic Performance 1991Institutions, Institutional Change and Economic Performance 1981Culture's Consequences: International Differences in Work-Related Values 1981The Evolution of Cooperation 1980Competitive Strategy: Techniques for Analyzing Industries and Competitors 1983Culture's Consequences: International Differences in Work-Related Values.1993The cornerstones of competitive advantage: A resource‐based view

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