Not All Competitors are Created Equal: The Heterogeneity of MNE Competitors and its Competitive Consequences

40 Pages Posted: 10 Oct 2011

See all articles by Lilac Nachum

Lilac Nachum

City University of New York - Allen G. Aaronson Department of Marketing & International Business

Marina Carnevale

City University of New York - CUNY Baruch College - Zicklin School of Business

Helaine Korn

City University of New York - Narendra Paul Loomba Department of Management

Date Written: October 10, 2011

Abstract

By virtue of their participation in multiple competitive settings, MNEs confront competitors with different attributes and in different locations, creating variations that pose different competitive challenges. We classify MNE competitors by their nationality, geographic scope, and location, and maintain that the value of a focal MNE’s assets and the intensity of the competition it faces vary in relation to these competitors. These predictions are tested on a sample of US legal-services MNEs as the focal MNEs in relation to different sets of competitors. We find support for the anticipated variations across competitor groups, suggesting that varying competitive positions of MNEs across countries is an inherent feature of international competition.

Keywords: Multinational Companies (MNEs) strategies, MNE competitors, competitors heterogeneity, nationality, home country, MNE competitive position

Suggested Citation

Nachum, Lilac and Carnevale, Marina and Korn, Helaine, Not All Competitors are Created Equal: The Heterogeneity of MNE Competitors and its Competitive Consequences (October 10, 2011). Available at SSRN: https://ssrn.com/abstract=1941870 or http://dx.doi.org/10.2139/ssrn.1941870

Lilac Nachum (Contact Author)

City University of New York - Allen G. Aaronson Department of Marketing & International Business ( email )

One Bernard Baruch Way, B12-240
New York, NY 10010-5585
United States

Marina Carnevale

City University of New York - CUNY Baruch College - Zicklin School of Business ( email )

55 Lexington Ave., Box B13-260
New York, NY 10010
United States

Helaine Korn

City University of New York - Narendra Paul Loomba Department of Management ( email )

NY
United States

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