International Expansion, Diversification and Regulated Firm Nonmarket Strategy

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Ressource 1Download: BIB_6D71121B1D09.P001.pdf (301.15 [Ko])
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Version: Author's accepted manuscript
Serval ID
serval:BIB_6D71121B1D09
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
International Expansion, Diversification and Regulated Firm Nonmarket Strategy
Journal
Managerial and Decision Economics
Author(s)
Urbiztondo S., Bonardi J.-P., Quélin B.
ISSN
1099-1468 (Online)
Publication state
Published
Issued date
09/2013
Peer-reviewed
Oui
Volume
34
Number
6
Pages
379-396
Language
english
Abstract
Previous studies have shown that regulated firms diversify for reasons that are different than for unregulated firms. We explore some of these differences by providing a theoretical model that starts by considering the firm-regulator relationship as an incomplete information issue, in which a regulated incumbent has knowledge that the regulator does not have, but the firm cannot convey hard information about this knowledge. The incumbent faces both market and nonmarket competition from a new entrant. In that context, we show that when the firm faces tough nonmarket competition domestically, going abroad can create a mechanism that makes information transmission to the regulator more credible. International expansion can thus be a way to solve domestic nonmarket issues in addition to being a catalyst for growth.
Keywords
Nonmarket strategy, international expansion, regulated firms
Open Access
Yes
Create date
10/07/2013 22:29
Last modification date
20/08/2019 15:27
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