Multimarket contact and performance: Evidence from emerging economies

The organizational structure of multinational enterprises (MNEs) is mainly made up of subsidiaries located in emerging and advanced countries. Consequently, they usually compete against the same rivals simultaneously in both emerging and advanced contexts. Multimarket contact (MMC) theory analyzes t...

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Detalles Bibliográficos
Autores: Domínguez, B., Garrido, E. [0000-0002-5071-0858], Orcos, R. [0000-0001-7171-1852]
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2016
País:España
Institución:Universidad de La Rioja (UR)
Repositorio:RIUR. Repositorio Institucional de la Universidad de La Rioja
OAI Identifier:oai:portal.dialnet.es:doc/5bbc6882b750603269e80a4d
Acceso en línea:https://investigacion.unirioja.es/documentos/5bbc6882b750603269e80a4d
Access Level:acceso abierto
Palabra clave:Emerging countries
Multimarket contact (MMC)
Multinational enterprises (MNEs)
Mutual forbearance and performance
Descripción
Sumario:The organizational structure of multinational enterprises (MNEs) is mainly made up of subsidiaries located in emerging and advanced countries. Consequently, they usually compete against the same rivals simultaneously in both emerging and advanced contexts. Multimarket contact (MMC) theory analyzes the competitive dynamics that arise in these situations. However, researchers have paid more attention to the consequences of multimarket contact in developed countries than to its effect in emerging countries. To explore the impact of the macroenvironment on the relationship between MMC and performance, we examine how coinciding with multimarket rivals in emerging economies alters the effect of MMC on firm performance. Our research, which is developed with a sample from the mobile telecommunications industry, shows that the presence of MNEs in emerging countries hinders the development of mutual forbearance practices and, therefore, reduces the positive effect of MMC on firm performance. © 2016 ACEDE