Transition from Domestic Competition to Strategizing Incentives as an Ex-Ante Process toward International Competitiveness
DOI:
https://doi.org/10.59529/gbej.v3i2.18Keywords:
leniency program, developing economies firms, competitive market, cartel, competitiveness, incentiveAbstract
Domestic competition policy plays essential and fundamental role behind firms’ international competitiveness. In particular, this issue is even more important in emerging economies, where markets are still developing. Antecedents of firms’ resources, proper industrial environment, and influence of institutions that are considered as competitive advantages are “incentivizing” process that let firms create their competitiveness through competitive market. I propose that cartel is a promising situation to create so-
called transition process. Leniency program should be considered as a promising policy generating distrustful atmosphere among cartelists and deter them from forming cartel. This leads to higher degree of competitive market and facilitates incentives to create competitiveness internationally.