Competitive Action in the Diffusion of Internet Technology Products in Emerging Markets: Implications for Global Marketing Managers

Abstract

This research explores the extent to which competitive actions of multinational corporations (MNCs) and local vendors of Internet technology products shape the diffusion of their respective products in emerging markets. Drawing on competitive technology diffusion, the Austrian perspective on firms’ market processes, and resource advantage theory, the authors develop a set of hypotheses regarding the characteristics of the competitive actions of MNCs and local vendors. They validate the hypotheses with longitudinal field data from two pairs of competing Internet technology products in search engine and consumer-to-consumer electronic markets. The findings indicate that specific market-oriented actions of local vendors and MNCs influence the diffusion of technology products. In particular, global marketing managers should concentrate on a few key actions and take new actions that differ from those of local vendors in emerging markets. This study provides a wealth of knowledge in high-technology product diffusion and demonstrates how competition between local vendors and MNCs in emerging markets differs from typical within-industry competition. In addition, this study conveys important implications to the theory of international business.