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Author:Rose, E.L.
Ito, K.
Title:Past interactions and new foreign direct investment location decisions: Firm-specific analysis in the global tire industry
Journal:Management International Review
2009 : VOL. 49:5, p. 641-669
Index terms:foreign investment
direct investment
location of industry
decision making
markets
competition
multinational companies
Freeterms:FDI
Language:eng
Abstract:Examining the nature of competitive interaction among multinational companies (MNCs) in the tire industry, it is found that the history of interactions btw. particular competitors matter. In the era of global consolidation, the entering decision into a new foreign market is related to the identities of rivals in the market, characteristics of the firm and the market, and the extent of past competitive interactions with the international pioneering firm. Results suggest that aspects of multimarket competition are important to FDI decisions in an oligopolistic environment.
SCIMA record nr: 269105
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