Market liberalization in emerging-market economies and the entry of multinational firms spur significant changes to the industry/institutional environment faced by domestic firms. Prior studies have described how such changes tend to be disruptive to the relatively backward domestic firms, and...

We explore the strategic adaptation by domestic firms subsequent to economic liberalization and industry deregulation in an emerging economy. We study the Indian auto components industry during a ten-year period (1992-2002), using the Prowess database complemented by in-depth interviews with...