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Country risk, multimarket contacts and MNEs' competitive action

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  • Yu-Ching Chiao

Abstract

In light of the lack of empirical evidence on discussing international business issue by integrating MNEs competitive dynamics. This study investigates the moderating role that multimarket contact play in MNEs' country risk and competitive action. Examining a sample of top 20 container shipping MNEs in terms of collecting 2,117 competitive actions from Shipping Digest, this study finds that when MNEs face higher country risks, they undertake fewer competitive actions. On the other hand, this study also shows that MNEs with higher degrees of multimarket contact between MNEs weaken the negative relationship between country risk and a focal firm's competitive actions. This study extends mutual forbearance theory to international context by investigating how multimarket contact impacts the relationship between country risk and a focal firm's competitive actions. The implications of these findings for research and practice are discussed.

Suggested Citation

  • Yu-Ching Chiao, 2014. "Country risk, multimarket contacts and MNEs' competitive action," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 6(4), pages 329-350.
    • Handle: RePEc:ids:ijbenv:v:6:y:2014:i:4:p:329-350
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