Finally, the present study contributes to the strategy in emerging economies literature (Wright et al., 2005) by emphasizing that behavioral perspectives substantially help to explain firm behavior in such contexts. Recent theoretical work on strategy in emerging economies focuses on external constraints in form of institutions and the use of networks (Peng et al., 2008; Xu & Meyer, 2013). This literature has, however, rarely looked at competitive dynamics and the actions that firms take to achieve competitive advantage (Cui et al., 2014;Meyer &
Sinani, 2009). We add to this literature by focusing on the behavioral aspects of managerial decision-making, which are constrained by high degrees of bounded rationality and bounded reliability. Understanding how decision-makers act under such circumstances is critical for advancing our knowledge on firm behaviors in emerging economies.