The Limits of Mimetic Isomorphism: Emerging Market Service Providers Entering Triad Markets

Abstract

Prior research shows that using mimetic isomorphism to select price/quality product strategies results in superior performance in the United States, the European Union, and Japan for both developed economy and emerging market manufacturers. However, do these results generalize in the case of emerging market service providers? Due to the nature of services, customers cannot gauge service quality prior to consumption, and they must rely on other cues; commonly, consumers rely on the brand name as a proxy. We theorize that for emerging market service providers, choosing a strategy of “distinctiveness” (pursuing a nondominant price/quality strategy) offers a way to differentiate their offering from the mimetic choice, resulting in superior performance. Implications for theory and practice are discussed.