International Expansion, Diversification and Regulated Firm Nonmarket Strategy - HEC Paris - École des hautes études commerciales de Paris Access content directly
Journal Articles Managerial and Decision Economics Year : 2013

International Expansion, Diversification and Regulated Firm Nonmarket Strategy

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

Dates and versions

hal-00852603 , version 1 (21-08-2013)

Identifiers

Cite

Santiago Urbiztondo, Jean-Philippe Bonardi, Bertrand Quélin. International Expansion, Diversification and Regulated Firm Nonmarket Strategy. Managerial and Decision Economics, 2013, 34 (6), pp.379-396. ⟨10.1002/mde.2598⟩. ⟨hal-00852603⟩

Collections

HEC CNRS
78 View
0 Download

Altmetric

Share

Gmail Facebook X LinkedIn More