Market entry into new export markets: When are firms more likely to imitate their competitors’ market presence? |
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| Institution: | 1. Mohammed VI Polytechnic University, Africa Business School, Avenue Mohammed Ben Abdellah Regragui, Madinat Al Irfane, Rabat BP6380, Morocco;2. UQ Business School, University of Queensland, Joyce Ackroyd Building, St. Lucia Campus, Brisbane, QLD, Australia;1. Australian Centre for Asian Business, UniSA Business, The University of South Australia, 37-44 North Terrace, Adelaide, SA 5000, Australia;2. Australian Centre for Asian Business, UniSA Business, The University of South Australia, 37-44 North Terrace, Adelaide, SA 5000, Australia;1. IMT Business School, Dubai;2. School of Business and Economics, Loughborough University, United Kingdom;1. Toulouse Business School, Department of Marketing, 1 Place Alfonse Jourdain, 31000 Toulouse, France;2. University of Antwerp, Department of Marketing, Prinstraat 13, 2000 Antwerp, Belgium;1. International Business School of Beijing Foreign Studies University, No 19. Xisanhuan North Road, Beijing, China;2. Newcastle Business School, Northumbria University, NE1 8ST Newcastle, UK;1. New York University Stern School of Business, Henry Kaufman Management Center Department of Economics, 44 West Fourth Street, 7-90, New York, NY 10012, USA,;2. University of Birmingham, Birmingham Business School, Department of Strategy & International Business, Edgbaston Park Road, Birmingham B15 2TY, UK;3. University of Sussex, Department of Strategy & Marketing, Sussex House, Falmer, Brighton BN1 9RH, UK;1. Accounting Department, University of Quebec in Trois-Rivières, 3351 Boulevard Des Forges, Trois-Rivières, Qc G9A 5H7, Canada;2. Organization and HR Department, ESG, University of Quebec in Montreal, C.P. 8888, Succursale Centre-ville, Montréal, Qc H3C 3P8, Canada;3. Finance and Economics Department, University of Quebec in Trois-Rivières, 3351 Boulevard Des Forges, Trois-Rivières, Qc G9A 5H7, Canada |
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| Abstract: | We investigate the extent to which competitors’ presence in a given export market has an impact on a firm's decision to enter such a market and, more precisely, under what conditions imitation is more likely to take place. We show that firms with greater export knowledge are more likely to enter those countries where their competitors are already present. Furthermore, experiential knowledge seems necessary to absorb valuable information provided by the presence of competitors in those markets. Thus, imitation should not be regarded as the option best suited for firms with reduced expertize that follow blindly their competitors into new markets. Through a panel analysis of Brazilian exporters during the 2001–11 period, our study contributes to research on market entry decisions, especially stressing the critical role of prior relevant knowledge in facilitating imitation among players. |
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| Keywords: | Exports Imitation Information Knowledge Market entry Risk |
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