To understand the impact of the new block exemption regulation on distribution and after‐sales services in the automobile industry in the European Union (EU).
Strategic responses of the key actors are predicted with the aid of a developed theoretical framework using institutional, industrial organization, and resource‐dependence theories. Both the theoretical framework and the predictions are then tested on natural data, which was obtained from a survey commissioned by the European Commission.
Supranational regulatory institutions and current industry structure both influence firm strategy. Firms respond by anticipating how the regulatory change may impact the future industry structure.
As data cover a short period after the new regulation, long‐term impact cannot be observed.
Contributes to the understanding of the changing state of automobile‐distribution and after‐sales services in the EU.
Unveils the complex relationships between supranational regulatory institutions, firm strategy, and industry structure.
