Rivalry Between Multinational Enterprises: An Event History Approach

Abstract

Our study investigates rivalry between multinational enterprises (MNEs) in host country markets. Drawing on the awareness-motivation-capability perspective, we show how the speed of an MNE's response to a rival's attack is influenced by resource-related factors, including distance, government constraints, and subsidiary control, and by market-related factors, including initiating country importance, location of the response in the initiating country, and multimarket contact. We provide a new conceptualization and empirical approach for studying rivalry between MNEs. Additionally, our theory and evidence imply that important constraints on MNE actions in host country markets go well beyond the constraints faced in domestic competition.