Antitrust Policies and Firm Strategies in a Global Context

Abstract

This thesis examines the impact of antitrust policies on international business strategies through three independent but interrelated studies. The first two focus on outward internationalization. The first study finds that stronger domestic antitrust legislation leads small and medium-sized enterprises to shift their focus to domestic markets, reducing their level of product market internationalization. This effect is moderated by ownership structure, with private firms and business-group affiliates responding more strongly. The second study explores the impact of stringent domestic antitrust enforcement on large emerging market firms. It finds that these firms accelerate their internationalization speed in response, and firms with moderate technological capabilities are most likely to pursue faster internationalization as a strategic response. The third study examines inward internationalization, specifically the influence of antitrust merger review policies on cross-border acquisitions. It finds that the introduction of these policies significantly reduces the likelihood of successful acquisitions by foreign acquirers, while domestic acquirers are unaffected, suggesting the presence of covert economic nationalism in the implementation of these policies. The negative impact is mitigated when foreign acquirers come from politically aligned countries or have a strong track record of successful acquisitions in the target country’s political allies. Together, these studies contribute to understanding how antitrust policies shape both inward and outward internationalization strategies in global business.