Multimarket contact and performance: Evidence from emerging economies

  1. Domínguez, B. 1
  2. Garrido, E. 2
  3. Orcos, R. 3
  1. 1 Universidad de La Rioja
    info

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

  2. 2 Universidad de Zaragoza
    info

    Universidad de Zaragoza

    Zaragoza, España

    ROR https://ror.org/012a91z28

  3. 3 Universidad Pública de Navarra
    info

    Universidad Pública de Navarra

    Pamplona, España

    ROR https://ror.org/02z0cah89

Journal:
Business Research Quarterly

ISSN: 2340-9436

Year of publication: 2016

Volume: 19

Issue: 4

Pages: 278-288

Type: Article

DOI: 10.1016/J.BRQ.2016.02.003 SCOPUS: 2-s2.0-84962860793 WoS: WOS:000384516500004 DIALNET GOOGLE SCHOLAR
Institutional repository: lock_openOpen access editor

Abstract

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