Explaining the Clustering of International Expansion Moves

Gimeno, J., Hoskisson, R. E., Beal, B. D., & Wan, W. P. 2005. Explaining the clustering of international expansion moves: A critical test in the U.S. telecommunications industry. Academy of Management Journal, 48(2): 297-319. [PDF]

Abstract:

This study discriminates among alternative competitive and institutional explanations of in-ter-organization mimetic behavior that leads to clustering of international expansion moves of U.S. telecommunications firms towards Western Hemisphere countries from 1985 to 1995. Mimicry of entry moves was more likely when the focal firm and prior movers had large shares in the same domestic markets. Oligopolistic long-distance firms tended to imitate each other’s foreign entry moves more than local-monopolist Baby Bells. Mimicry of international entry was strongly linked to the structure of the domestic competitive context.

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