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The Effect Of Product Regulation On Business Global Competitiveness: A Contingency Approach, Carol M. Sanchez

Peer Reviewed Articles

This paper focuses on product regulation, which is one important type of regulation that influences business firms. We develop a theoretical model that describes the effect of product regulation on the global competitiveness of business. Special emphasis is given to the contingency effects of several variables on the relationship between product regulation and business global competitiveness. We derive three propositions about these contingency effects, and also discuss higher-order interactions that may occur between the contingency. The overall thrust of our argument is to question the universality of the assumption that regulation is detrimental to business competitiveness.