Browsing by Author "Giachetti, C."

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Do I see what you see? Institutional quality, action observability, and multimarket contact in the global mobile phone industry
(Wiley, 2024-02) Giachetti, C.; Lampel, J.; Önöz, Ergün; International Business and Trade; ÖNÖZ, Ergün
Research Summary: Drawing on signaling theory and the international business literature that addresses the role of institutions, we argue that multinational enterprises (MNEs) that use multimarket contact (MMC)—that is, meet the same competitors in multiple countries—to reduce rivalry in a given country, will have their actions and performance influenced by the institutional quality of that country. More specifically, we contend that action observability is the mechanism that explains why institutional quality facilitates an MNE's use of MMC with competitors in a host country. We also contend that an MNE's ability to successfully reduce rivalry with host country competitors via MMC is contingent on the institutional quality distance between the MNE's home and host country. We test our hypotheses with data from the mobile phone industry. Managerial Summary: MNEs often meet the same rivals simultaneously in multiple countries, a phenomenon known as market overlap or MMC. Prior studies have found that MMC deters rivals from attacking each other in the countries they have in common. However, these studies have not taken into account the heterogeneity of the institutional environments of the countries in which multimarket rivals compete. We contend that the quality of countries' institutions and the institutional quality distance between home and host countries affect the extent to which MNEs can observe each other's actions, which in turn helps rival MNEs to avoid mutually damaging moves for their sales performance in the countries they have in common.
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Will rivals enter or wait outside when faced with litigation risk? Patent litigation in complex product industries and international market entry
(Sage, 2023-05) Önöz, Ergün; Giachetti, C.; International Business and Trade; ÖNÖZ, Ergün
A spiral of patent infringement litigation among rival firms is a phenomenon often observed in complex product industries, where products comprise numerous separately patentable elements. Theoretically grounded in the awareness–motivation–capability framework of competitive dynamics, this article contributes to the literature on patent strategy and international market entry by looking at how, in a complex product industry, the intensity of patent litigation in a country affects a firm’s decision to enter that country. Our results show that the intensity of patent litigation in a country is a deterrent for potential entrants and has a negative effect on a firm’s likelihood of entering that country. We also show that a firm’s previous experience with patent litigation (awareness component), the share of a firm’s current patent applications in a target country (motivation component), and the size of a firm’s patent stock (capability component) moderate the relationship between a country’s patent litigation intensity and a firm’s likelihood of entering that country. We thus shed light on the joint effect of macro- and micro-level patent-related variables on a firm’s market entry decisions. We test our hypotheses with a comprehensive panel of patenting and entry strategies of 84 mobile phone vendors and their patent litigation battles in 45 countries, from 2003 to 2015.