| With the ups and downs of the economic cycle,the increasingly fierce competition in the market,the managers’ ability to make decisions based on the market,changes in the competitive position of the market,changes in government policies,and other stakeholders in the business and changes in the marketing relationship,etc.,those will directly or indirectly affect the survival and development of the firm.Under such fierce competition circumstance,in order to improve their survivability,firms often limit their production and business activities to the same type of products or industries,and carry out related or non-related diversification operations.As more and more companies carry out diversified operations,it is increasingly common for companies and companies to meet in multiple markets to eventually form multiple markets.Judging from the research results of previous related literature,compared to competition in a single market,the multimarket contacts formed between firms and competitors will make it easier for companies to adopt competitive actions that will result in retaliatory responses from competitors.The retaliatory response taken by the rivals may not only be limited to the market in which the focal firm launched the attack,but may also occur in other markets owned jointly by the firm and the rivals.As the multimarket contacts between companies and competitors increase,the number of “offensive and counterattack” competition interactions between companies also increases,and the degree of mutual familiarity and mutual deterrence between enterprises and competitors will increase.Market entry,as an important development strategy for companies,and it plays a role in reducing the intensity of competition.In addition,market entry can also be used to measure the intensity of competition between companies and competitors in the context of multiple market exposures.Based on this analysis,the hypothesis of "mutual forbearance" was put forward around this dynamic process,and a detailed explanation was given.In general,multimarket contact can reduce the intensity of competition and inhibit the company’s market entry behavior.In order to further clarify the relationship between multimarket exposure andmarket entry,this paper discusses multimarket contact and market entry behavior based on the logic of “market environment-management awareness-strategic behavior”at both the corporate and managerial levels.The internal explanation mechanism of the relationship between the two.Based on the review of related literature and theoretical basis,this paper presents four hypotheses about the regulatory role of multi-market contacts,overconfidence of managers,and market entry behavior,and the relationship between political connections and multimarket contacts and managerial overconfidence.After the collection of relevant data and the results obtained from the empirical analysis,we finally reached the following conclusions:(1)multimarket contact can inhibit managers’ overconfidence;(2)managers’ overconfidence plays a mediating role in the relationship between multimarket contact and market entry;(3)political connection can strengthen the inhibitory effect of multimarket contact on managers’ overconfidence. |
