Do I see what you see? Institutional quality, action observability, and multimarket contact in the global mobile phone industry

Name: Do I see what you see? Institutional quality, action observability, and multimarket contact in the global mobile phone industry
Author: Giachetti, C., Lampel, J., Önöz, Ergün

İsim	Do I see what you see? Institutional quality, action observability, and multimarket contact in the global mobile phone industry
Yazar	Giachetti, C., Lampel, J., Önöz, Ergün
Basım Tarihi:	2024-02
Basım Yeri	- Wiley
Konu	Action observability, Home–host country institutional distance, Institutional quality, Multimarket contact, Signaling theory
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	2042-5805
Kayıt Numarası	195581ae-13e8-40b5-91ce-bc98bdd9020f
Lokasyon	International Business and Trade
Tarih	2024-02
Örnek Metin	Research Summary: Drawing on signaling theory and the international business literature that addresses the role of institutions, we argue that multinational enterprises (MNEs) that use multimarket contact (MMC)—that is, meet the same competitors in multiple countries—to reduce rivalry in a given country, will have their actions and performance influenced by the institutional quality of that country. More specifically, we contend that action observability is the mechanism that explains why institutional quality facilitates an MNE's use of MMC with competitors in a host country. We also contend that an MNE's ability to successfully reduce rivalry with host country competitors via MMC is contingent on the institutional quality distance between the MNE's home and host country. We test our hypotheses with data from the mobile phone industry. Managerial Summary: MNEs often meet the same rivals simultaneously in multiple countries, a phenomenon known as market overlap or MMC. Prior studies have found that MMC deters rivals from attacking each other in the countries they have in common. However, these studies have not taken into account the heterogeneity of the institutional environments of the countries in which multimarket rivals compete. We contend that the quality of countries' institutions and the institutional quality distance between home and host countries affect the extent to which MNEs can observe each other's actions, which in turn helps rival MNEs to avoid mutually damaging moves for their sales performance in the countries they have in common.
DOI	10.1002/gsj.1433
Cilt	14

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Do I see what you see? Institutional quality, action observability, and multimarket contact in the global mobile phone industry

Yazar Giachetti, C., Lampel, J., Önöz, Ergün

Basım Tarihi 2024-02

Basım Yeri - Wiley

Konu Action observability, Home–host country institutional distance, Institutional quality, Multimarket contact, Signaling theory

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 2042-5805

Kayıt Numarası 195581ae-13e8-40b5-91ce-bc98bdd9020f

Lokasyon International Business and Trade

Tarih 2024-02

Örnek Metin Research Summary: Drawing on signaling theory and the international business literature that addresses the role of institutions, we argue that multinational enterprises (MNEs) that use multimarket contact (MMC)—that is, meet the same competitors in multiple countries—to reduce rivalry in a given country, will have their actions and performance influenced by the institutional quality of that country. More specifically, we contend that action observability is the mechanism that explains why institutional quality facilitates an MNE's use of MMC with competitors in a host country. We also contend that an MNE's ability to successfully reduce rivalry with host country competitors via MMC is contingent on the institutional quality distance between the MNE's home and host country. We test our hypotheses with data from the mobile phone industry. Managerial Summary: MNEs often meet the same rivals simultaneously in multiple countries, a phenomenon known as market overlap or MMC. Prior studies have found that MMC deters rivals from attacking each other in the countries they have in common. However, these studies have not taken into account the heterogeneity of the institutional environments of the countries in which multimarket rivals compete. We contend that the quality of countries' institutions and the institutional quality distance between home and host countries affect the extent to which MNEs can observe each other's actions, which in turn helps rival MNEs to avoid mutually damaging moves for their sales performance in the countries they have in common.

DOI 10.1002/gsj.1433

Cilt 14