The decline of global market leaders

Xiaowen Tian and John W. Slocum

Journal of World Business, 2015, vol. 50, issue 1, 15-25

Abstract: Integrating capability-based and institution-based views in a multilevel framework, we argue that managerial capability to acquire loans to finance business expansion has an inverted U-shaped relationship with global market leadership. The negative effect on global market leadership of excessive loan-acquiring capability is amplified under business-friendly market institutions that ease access to credit. Managerial capability to utilize resources productively positively moderates the relationship between loan-acquiring capability and global market leadership. The role of resource-utilizing capability is attenuated under business-friendly market institutions that facilitate overinvestment. The study helps explain recent decline of global market leaders in advanced market economies.

Keywords: Global market leadership; Managerial capabilities; Market friendly institutions; Capability-based view; Institutional-based view (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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DOI: 10.1016/j.jwb.2014.01.003

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