Past Interactions and New Foreign Direct Investment Location Decisions |
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| Authors: | Elizabeth L Rose Kiyohiko Ito |
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| Affiliation: | (1) Department of Marketing and Management, Helsinki School of Economics, Helsinki, Finland;(2) Department of Management, Shidler College of Business, University of Hawai’i at Manoa, Honolulu, HI, USA |
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| Abstract: |
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Analyzing the nature of competitive interaction among multinational firms in the tire industry, we find that the histories
of the interactions between particular rivals matter.
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The decision to enter a new foreign market in the era of global consolidation is related to the identities of rivals in the
market, characteristics of the firm and the market, and the extent of past competitive interactions with the international
pioneering firm.
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Results suggest that, in an oligopolistic environment, aspects of multimarket competition are important to foreign direct
investment decisions.
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