Resource title

Explanations of clustering in the international expansion moves of US telecommunications firms

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This study examines the determinants of mimetic “follow-the-leader” clustering behavior among U.S. 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.

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en

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application/pdf

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http://flora.insead.edu/fichiersti_wp/inseadwp2001/2001-56.pdf

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