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The decline of global market leaders

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  • Tian, Xiaowen
  • Slocum, John W.

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.

Suggested Citation

  • Tian, Xiaowen & Slocum, John W., 2015. "The decline of global market leaders," Journal of World Business, Elsevier, vol. 50(1), pages 15-25.
    • Handle: RePEc:eee:worbus:v:50:y:2015:i:1:p:15-25
    DOI: 10.1016/j.jwb.2014.01.003
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    2. Peter J. Buckley & Xiaowen Tian, 2017. "Transnationality and Financial Performance in the Era of the Global Factory," Management International Review, Springer, vol. 57(4), pages 501-528, August.

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