Who follows whom? Asymmetric competition in cross-border market expansion

Kai Yu Hsieh, Ming Jer Chen

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

We refine the concept of asymmetric competition by considering the difference in magnitude and directionality. Drawing on the awareness-motivation- capability framework in competitive dynamics research, we examine a firm's propensity of matching a rival's expansion overseas as influenced by their asymmetric market commonality. We tested our hypotheses by studying 650 geopraphical expansions made by Taiwanese PC firms in Mainland China from 1999 to 2005, revealing that a moderate magnitude of (either positive or negative) asymmetry increases matching propensity, whereas an extremely high (or low) magnitude has the opposite effect. Our research injects the dyadic consideration into the study of who-follows-whom, a long-standing concern in international business research.

Original languageEnglish
Title of host publicationAcademy of Management 2009 Annual Meeting: Green Management Matters, AOM 2009
Publication statusPublished - 2009
Externally publishedYes
Event69th Annual Meeting of the Academy of Management, AOM 2009 - Chicago, IL
Duration: 2009 Aug 72009 Aug 11

Other

Other69th Annual Meeting of the Academy of Management, AOM 2009
CityChicago, IL
Period09/8/709/8/11

Keywords

  • Asymmetric competition
  • Competitive dynamics
  • Cross-border market expansion

ASJC Scopus subject areas

  • Management Information Systems
  • Management of Technology and Innovation
  • Industrial relations

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    Hsieh, K. Y., & Chen, M. J. (2009). Who follows whom? Asymmetric competition in cross-border market expansion. In Academy of Management 2009 Annual Meeting: Green Management Matters, AOM 2009