Oligopolistic reaction and multinational enterprise

“Along these lines, a motivation for choosing a location was put forward by Knickerbocker (1973) suggesting that firms in oligopolistic markets follow each other’s location decisions if they are uncertain about production costs in the host country, and therefore, by following their rivals through…”

“For large MNCs operating in concentrated industries, another factor that stimulated early entry decisions resulted from the oligopolistic reaction strategy (Knickerbocker 1973) of key players who were trying to replicate their investment decisions to ensure that the global ‘‘balance of power’’ 12 J.”

“Les entreprises avec des dotations en ressources similaires ou comparables s’imitent mutuellement afin de minimiser le risque d’asymétrie des positions concurren-tielles (F. Knickerbocker, 1973) ou pour atténuer la concurrence (M. Porter, 1979).”

“Finally, as posited by Knickerbocker (1973), Toyota, Honda, and Hyundai followed the early entrants of Fiat and Ford.”

“For example, according to Womack et al. (1990) such proximity is important since ‘[lean] production achieves its highest efficiency, quality and flexibility when all activities from design to assembly occur in the same place’ (see ibid; p.”

“…1978, 1982), Buckley and Casson (1976), Aharoni (1990), Hymer (1960, 1976), Enderwick (1989c), Caves (1985), Aliber (1970), Johanson and Vahlne (1977), Vernon (1966), Knickerbocker (1973), and Buckley (1993a) have contributed to the firm internationalization and international production theories.”

“The first is the strategic behavior (Kogut, 1998) from market power perspective which is an extension of industrial organization (IO) model integrating the contributions of Porter (1986), Caves (1971), Knickerbocker (1973) and others.”

“For years they have acted as references and now they are beginning to show signs of slower growth, with tourism figures below those of their Mediterranean rivals (Knickerbocker, 1973; Buckley-Brooke, 1988).”

“Teorik gelişimin ikinci aşamasında, temelleri Hymer (1970)’in firmaya özgü avantaj teorisi ve Knickerbockers (1973) oligopolistik tepki teorisinin yanı sıra Buckley ve Casson (1976)’ın içselleşme teorisinin modifikasyonuna dayanan “endüstriyel organizasyon yaklaşımı” ana doğrudan yabancı yatırım…”

“Kindleberger (1969) and Knickerbocker (1973) identified that tendencyto raise profits by taking improvement in technological preeminence organizational structure was the main reasons for direct investment.”

“255 RGDPG Real GDP growth rate Ekeocha, Ekeocha, Victor & Oduh (2012); Otchere et al. (2015) REXCR Real exchange rate Ekeocha et al.”

“Knickerbocker (1973) affirmed that a firm carries out FDIs in a specific foreign market in order to imitate the strategy of large competitors.”

“Based on the study of the relationship between FDI and the oligopoly rivalry between firms, Knickerbocker (1973) (as cited in Hill, 2007) asserted that FDI flows show the strategic rivalry between companies in the global market because of reactive behavior to the entry of competitors in certain…”

“Knickerbocker (1973) developed the “follow the leader” theory, combining it with the defensive FDI approach.”

“Traditionally, the cross-industry analyses of FDI determinants are based on hypotheses in microeconomics and industrial organization theory on production allocation and also their derivative theories [1] [3] [10] [11] [12].”

“This result shows that under some circumstances, foreign direct investments (FDI) may be either strategic complements or strategic substitutes (see Knickerbocker (1973) for a complete explanation of the “oligopolistic reaction” approach in an FDI theory).”

“Knickerbocker (1973) argued that this type of imitative behavior characterizes FDI.”

“References are given finally.”

“1997), or an attempt to ensure competitive parity with rivals (Knickerbocker 1973; Rose and Ito 2009; Yu and Ito 1988).”

“The oligopolistic industries theory of Knickerbocker [35] posits that firms undertake FDI in response to the actions of market leaders.”

“…insights from the strategic interactions perspective suggest that the benefits of multicoun-try colocation come from repetitive colocations (high intensity) among a small number of competitors (low in diversity) (Alca´cer et al., 2013; Flowers, 1976; Ghemawat & Thomas, 2008; Knickerbocker, 1973).”

“Oligopolistic theory explaining FDI (Knickerbocker, 1973) differentiates between two main motives of a company when choosing a country as a potential location for setting up a new facility.”

“Kindleberger (1973) views MNE expansion as a dynamic process of interfirm rivalry under an oligopolistic market structure.”

“Oligopolistic competition, for example, was mentioned in the book but not incorporated into the formal analysis (Rowthorn and Hymer, 1971; Knickerbocker, 1973; Graham, 1974; Flowers, 1976).”

“Enterprise 2.1 For a number of years, the expression ‘Enterprise’ has been perceived as a bold or complex business or organisation (Davenport, 1998; Knickerbocker, 1973), whereas more recently, Rice (2013), Monk and Wagner (2012) have suggested, the modern image of enterprise consists of people,…”

“The strategic behaviour towards rivals is considered in Hymer (1960), Vernon (1966), Knickerbocker (1973) and Cowling and Sugden (1987).”

“The study of 187 large US-based multinational enterprises by Knickerbocker (1973) showed that the establishment of FDI happens as a reaction of competitive firms to the international expansion of the leading enterprise, in an effort to preserve the existing market conditions and international…”

“firms, aware of their strategic interdependence, imitate rivals’ moves quickly in order to maintain competitive parity (Knickerbocker, 1973).”

“Here, the degree of concentration or fragmentation is the key in determining the extent to which a firm's country entry decisions are conditioned by those of its competitors (Davidson, 1982; Knickerbocker, 1973).”

“Oligopolistic reaction theory was developed by Knickerbocker (1973).”

“The hypothesis that in loose oligopolies, rivalry between the firms increases the occurrence and speed of foreign expansion has been supported by various empirical studies (Knickerbocker, 1973; Flowers, 1976; Caves et al. 1980; Yu and Ito, 1988, Chang, 1995; Kinoshita and Mody, 1997).”

“Rees (1978) and Thomas (1980) have attempted to explain the multinational stage in the internationalisation process in terms of Vernon's (1966) product cycle and the oligopoly model (Hymer, 1960; Knickerbocker, 1973).”

“Managerial behaviour and FDI patterns might also differ significantly across firms depending on the ownership structure of the investing firm.”

“In his work known in the literature as the “Oligopolistic Reaction Theory”, Knickerbocker (1973) explained the timing of foreign direct investments made by American firms through the “follow-the-leader” model, interpreting this phenomenon as a rational response to oligopolistic competition.”

“According to Knickerbocker (1973), the main reason of FDI is competitors’ foreign investments.”

“His theory found favour from Kindleberger (1969), Knickerbocker (1973), Caves (1974), Dunning (1974) and Cohen (1975).”

“In addition to these monopolistic benefits, Knickerbocker (1973) offered another explanation for outward foreign investment based on oligopolistic behavior.”

“• Is IPI’s entry into international business fairly typical of older US MNEs? • Which trade and FDI theories seem applicable to IPI’s development: Vernon’s International Product Cycle [10], Knickerbocker’s Oligopolistic FDI [11], Porter’s Diamond [12], New trade Theory [13], Absolute Advantage [14], Comparative Advant…”

“…que le processus d’internationalisation d’une entreprise était généralement composé de quatre étapes36 (Vaupel, 1971 ; Gruber, Mehta & Vernon, 1967 ; Knickerbocker, 1973) : l’export de marchandises afin de sonder le potentiel du marché (1), l’accord avec un intermédiaire type agent (2), la…”

“Those firms which invest abroad as a strategy of ‘following the leader’ (as Knickerbocker (1973) establishes in some oligopolistic markets) will prefer to share those facilities with another partner. In this case, the firm’s objective is to be present in that market to avoid the competitor monopolising it, ensuring th…”

“The paper models Knickerbocker (1973) hypothesis, according to which firms in oligopolistic industries would follow each other’s location decisions.”

“The strategic behaviour towards rivals is considered in Hymer (1960), Vernon (1966), Knickerbocker (1973) and Cowling and Sugden (1987).”

“Knickerbocker (1973) a avancé que lorsqu’une firme investit dans un pays étranger, elle peut déclencher le même comportement chez certaines de ses concurrentes.”

“Here, the degree of concentration or fragmentation is the key in determining the extent to which a firm’s country entry decisions are conditioned by those of its competitors (Davidson, 1982; Knickerbocker, 1973).”