Competitive Irrationality in Transitional Economies: Are Communist Managers Less Irrational?

Why do marketing managers in the transitional economies of Eastern Europe and China often engage in competitively irrational behavior, choosing pricing strategies that damage competitors’ profits, rather than choosing pricing strategies that improve their firm’s profits? We propose one possible reas...

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Bibliographic Details
Authors: Brouthers, Lance E. (Author) ; Lascu, Dana-Nicoleta (Author) ; Werner, Steve (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2008
In: Journal of business ethics
Year: 2008, Volume: 83, Issue: 3, Pages: 397-408
Further subjects:B Morality
B China
B Maoism
B competitive irrationality
B Slovakia
B Marxism
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Summary:Why do marketing managers in the transitional economies of Eastern Europe and China often engage in competitively irrational behavior, choosing pricing strategies that damage competitors’ profits, rather than choosing pricing strategies that improve their firm’s profits? We propose one possible reason, the moral vacuum created by the collapse of communist ideology. We hypothesize and find that managers who experienced formal communist moral ideological indoctrination are less likely to be competitively irrational than the post-communist managers who did not. Implications are discussed.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-007-9627-6