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Author:Kaufmann, L.
Körte, P.
Title:Responses of advanced country MNEs to low-cost country imports in their home markets
Journal:Management International Review
2010 : VOL. 50:2, p. 241-262
Index terms:multinational companies
imports
competition
markets
theories
manufacturing
companies
Germany
USA
Language:eng
Abstract:This study presents theoretical and empirical analyses of the level of future multinational companies' (MNEs) activities in low-cost countries' (LCCs) due to the rising prevalence of LCCs imports in the MNEs' home markets. Using oligopolistic parallel behaviour theory, this study analyzes the impact of LCCs competition (here as: cmp.) intensity (as: int-y.) and LCCs product quality. The model is tested using data collected from a top management survey of more than 420 U.S. and German manufacturing firms. The cmp. int-y. from LCCs and the quality of products imported from LCCs significantly explain MNEs' subsequent responses to that cmp. Cross-country comparisons show that while LCC product quality is important in both samples, the cmp. int-y. from LCCs is significant for MNEs' future activities in LCCs only in the U.S. sample.
SCIMA record nr: 269789
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