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Divisional Multimarket Contact within and between Multiunit Organizations
Academy of Management Journal (2004)
  • Arturs Kalnins, Cornell University School of Hotel Administration

The theory of multimarket contact has important but uninvestigated implications for interactions among a firm's divisions because divisions often meet and even compete in multiple geographical and product markets. I hypothesize that firms with incentives to induce competition among divisions will act to reduce levels of multimarket contact among those divisions. Further, I predict that, in markets with substantial uncertainty, firms will increase divisional multimarket contact. I find support for these hypotheses in the setting of the franchised fast-food industry.

  • Cornell University School of Hotel Administration,
  • hospitality management,
  • hospitality industry,
  • multimarket,
  • multiunit,
  • organizational behavior,
  • fast food industry
Publication Date
February, 2004
Publisher Statement
© Academy of Management. Reprinted with permission. All rights reserved.
Citation Information
Arturs Kalnins. "Divisional Multimarket Contact within and between Multiunit Organizations" Academy of Management Journal Vol. 47 Iss. 1 (2004)
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