The Effect Of Media Coverage And Alliance Experience On Mutual Forbearance

Abstract

According to the mutual forbearance hypothesis, firms tend to be less competitive when they have more markets in common. By using the awareness motivation capability perspective, this study examines how organizations awareness and motivation can affect its decision to use the mutual forbearance strategy. We hypothesized how media coverage, alliance experience, and type of the alliance moderate the impact of mutual forbearance. We tested those hypotheses with a sample of 10 automobile companies in the U.S.