Sub-National Culture and Competitive Behavior: AUK Faculty Speaker Explores How Geography Shapes Business Strategy
As part of the spring 2025 Faculty Speaker Series, AUK welcomed Mr. Muhammad Deabas, Instructor of Economics in the College of Business and Economics, to present his ongoing research, titled, “Does Sub-National Culture Affect Product-Market Competition? Evidence from Fast-Clock Speed Industries.”
Mr. Deabas’s presentation explored how differences in institutional and cultural environments—specifically at the sub-national level—influence firm competitive behavior and performance. Drawing on data from global and non-global cities, the research highlights the role of geography and local norms in shaping how businesses compete, particularly in fast-paced industries.
Mr. Deabas examined how firms headquartered in global cities—such as New York, London, Tokyo, and Paris—demonstrate greater competitive aggressiveness compared to firms in non-global cities. These cities, defined by their access to advanced services in law, finance, and technology, often operate as distinct institutional environments that are “disembedded” from national norms.
The research findings show that firms in global cities are more aggressively competitive and that local cultural norms further enhance the relationship between competition and firm performance. This contributes to the growing body of literature on institutional heterogeneity, offering new insights into how local environments shape strategic decision-making in global business contexts.
The session concluded with an engaging Q&A segment, where attendees discussed the implications of the research for international business strategy and economic development.
The AUK Faculty Speaker Series provides a platform for faculty to share their research with students, colleagues, and the wider community. Through these scholarly exchanges, the university fosters critical dialogue and contributes to the advancement of academic knowledge in Kuwait and beyond.
Mr. Deabas’s presentation explored how differences in institutional and cultural environments—specifically at the sub-national level—influence firm competitive behavior and performance. Drawing on data from global and non-global cities, the research highlights the role of geography and local norms in shaping how businesses compete, particularly in fast-paced industries.
Mr. Deabas examined how firms headquartered in global cities—such as New York, London, Tokyo, and Paris—demonstrate greater competitive aggressiveness compared to firms in non-global cities. These cities, defined by their access to advanced services in law, finance, and technology, often operate as distinct institutional environments that are “disembedded” from national norms.
The research findings show that firms in global cities are more aggressively competitive and that local cultural norms further enhance the relationship between competition and firm performance. This contributes to the growing body of literature on institutional heterogeneity, offering new insights into how local environments shape strategic decision-making in global business contexts.
The session concluded with an engaging Q&A segment, where attendees discussed the implications of the research for international business strategy and economic development.
The AUK Faculty Speaker Series provides a platform for faculty to share their research with students, colleagues, and the wider community. Through these scholarly exchanges, the university fosters critical dialogue and contributes to the advancement of academic knowledge in Kuwait and beyond.
Group photo of the speaker and attendees
Muhammad Deabas during his talk