Explaining the Clustering of International Expansion Moves: A Critical Test in the US Telecommunications Industry

This study examines the determinants of mimetic "follow-the-leader" clustering behavior among US telecommunications firms expanding into Western Hemisphere countries between 1985 and 1995. The industry context allows a natural experiment of distinct competitive and non-competitive rationales of mimicry. Findings suggest that the propensity to mimic is hetero-geneous. Mimicry of entry moves was more likely when the focal firm and prior movers had large domestic shares in the same markets. Oligopolistic long-distance firms tended to imitate each other's local entry moves, while local-monopolist Baby Bells did not. Domestic competitive rationales for international entry mimicry appear to have greater predictive validity.