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Divisional multimarket contact within and between multiunit organizations

Book or journal references : Academy of Management Journal, vol. 47, pp. 117-128 (2004).

Author(s) : Kalnins , A.

Abstract :

The theory of multimarket contact has important but uninvestigated implications for interactions among a firm's divisions because divisions often meet and even compete in multiple geographical and product markets. I hypothesize that firms with incentives to induce competition among divisions will act to reduce levels of multimarket contact among those divisions. Further, I predict that, in markets with substantial uncertainty, firms will increase divisional multimarket contact. I find support for these hypotheses in the setting of the franchised fast-food industry.


Keywords :

INTERORGANIZATIONAL IMITATION; ENTRY DECISIONS; MARKET ENTRY; COMPETITION; FIRM; ENVIRONMENT; ISOMORPHISM; DYNAMICS; IMPACT; GROWTH

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