Professor of Strategy
INDUSTRIAL organization -- Research ; CORPORATIONS -- Growth ; IMITATION ; INSTITUTIONAL isomorphism ; TELECOMMUNICATION -- Research ; MARKET entry ; MARKET share ; OLIGOPOLIES ; ORGANIZATIONAL response ;
JOURNAL ARTICLE | Academy of Management Journal | 48 | April 2005
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.