decentralized and concentrated investments in china and the performance of taiwanese listed electronic companies abstractever since china surpassed taiwan to become the largest exporter of electronic products dependence between the two sides has deepened which prompts taiwanese companies to go public in china this study conducted the data envelopment analysis dea and regression analysis to analyse the impacts of the depth and breadth of investments in china on the performance of taiwanese listed electronic companies the empirical results show that the breath of the investments in china has a positive correlation with the performance of taiwanese companies while the depth of investments in china has a negative and significant effect on the performances due to the companies lack of know how which leads to a high learning cost in summary companies should strategize their decentralized and concentrated investments in china

ownership based entry mode strategies and international performance this study examines the relationship between ownership entry modes and performance the ownership entry modes examined are the wholly owned modes of acquisition and new venture entry and the non wholly owned mode of joint venture entry a theoretical relationship is developed for international entry modes that is based on the contingency characteristics of resource requirements and organizational control factors this model suggests that different entry modes have different performance outcomes based upon their resource and organizational control demands the theoretical model although developed using the eclectic theoretical approach is based largely on concepts and relationships previously delineated in contingency theory our hypotheses suggest that new ventures should outperform joint ventures and joint ventures should outperform acquisitions an empirical test using a sample of 321 japanese firms entering the north american market provides supporting evidence

legitimacy and multi level institutional environments implications for foreign subsidiary ownership structure in this study we examine from an institutional perspective the legitimacy rationale behind the choice of subsidiary ownership structure among multinational corporations mncs we suggest that when under a strong pressure to conform at the host country and local industry levels of their institutional environment mncs are likely to take a lower ownership stake in exchange for external legitimacy in the host country or local industry that their foreign subsidiaries are entering we also suggest that mncs are likely to take a higher ownership stake in response to strong internal pressure to sustain their internal legitimacy at the corporate level of their institutional environment we also propose that mncs are more likely to exchange ownership for legitimacy in local industries than in host countries and in local markets with a high level of political instability than in those with a low level of political instability these propositions are generally supported by our analysis of 4451 subsidiaries established by 898 japanese mncs that operated in 39 countries across 52 industries two digit sic between 1988 and 1999

product stereotypes strategy and performance satisfaction the case of chinese exporters does following a product strategy of price leadership result in superior performance satisfaction for chinese exporters does branding products and targeting less developed countries significantly improve chinese exporters satisfaction with export performance results indicate performance satisfaction decreased when chinese firms pursued price leadership product strategies while performance satisfaction increased when chinese exporters used a branding product strategy branding products and targeting other less developed countries with these brands significantly increased performance satisfaction over branding alone

internal equity financing and the performance of multinational subsidiaries in emerging economies we examine the internal equity financing of the multinational subsidiary which retains and reinvests its own earnings internal equity financing is a type of firm specific advantage fsa along with other traditional fsas in innovation research and development brands and management skills it also reflects subsidiary level financial management decision making here we test the contributions of internal equity financing and subsidiary level financial management decision making to subsidiary performance using original survey data from british multinational subsidiaries in six emerging countries in the south east asia region our first finding is that internal equity financing acts as an fsa to improve subsidiary performance our second finding is that over 90 of financing sources including capital investment by the parent firms in the british subsidiaries come from internal funding our third finding is that subsidiary level financial management decision making has a statistically significant positive impact on subsidiary performance our findings advance the theoretical empirical and managerial analysis of subsidiary performance in emerging economies

are firm specific advantages location specific too much of the research on the role of firm specific advantages on firms subsidiary ownership preferences has been undertaken in the context of advanced country multinationals specifically u s mncs research has found that u s firms derive ownership advantages from their size experience and technological and marketing superiority perhaps having operated in the most developed and sophisticated home market many u s firms generate unique skills that give them absolute advantages over firms in almost all foreign host locations developing country mncs do not have absolute ownership advantages similar to those of the u s firms the relevance of a particular firm specific characteristic for a developing country mnc may be contingent not only upon the home country characteristics as in the case of u s mncs but also upon host country characteristics this study investigates the subsidiary ownership preferences among korean mncs and finds that the influence of three firm specific advantages technological intensity product differentiation and capital intensity on subsidiary ownership levels is contingent upon whether the subsidiary is located in a relatively less developed or a more developed country as compared to the home country although some authors have suggested that the influence of firm specific advantages may be contingent upon the characteristics of both home and host country locations empirical investigations to this effect have been nonexistent

a synthesis of foreign direct investment theories and theories of the multinational firm this paper first presents a taxonomy of the foreign direct investment theories following the market imperfections paradigm it then focuses on recent developments pertaining to the theory of the multinational firm specifically the appropriability internalization and diversification theories subsequently the multinational phenomenon is seen as the result of an international differentiation of activities and an intrafirm integration across national borders all this within a markets and hierarchies approach last the paper points to areas for future research

choice of foreign market entry mode impact of ownership location and internalization factors firms interested in servicing foreign markets face a difficult decision with regards to the choice of an entry mode the options available to a firm include exporting licensing joint venture and sole venture several factors that determine the choice of a specific foreign market entry mode have been identified in previous literature these factors can be classified into three categories ownership advantages of a firm location advantages of a market and internalization advantages of integrating transactions this study examines the independent and joint influences of these factors on the choice of an entry mode multinomial logistic regression model is employed to test the hypothesized effects

analyzing foreign market entry strategies extending the internalization approach a new fully integrated analysis of the foreign market entry decision is presented encompassing the choice between exporting licensing joint venturing and wholly owned foreign investment the choice between acquisition and greenfield investment is examined and so too are options based on subcontracting and franchising the model extends the insights of internalization theory and draws on concepts from the economics of industrial organization a special feature of the model is the distinction between investment in production facilities and investment in distribution facilities an important practical distinction that has been overlooked in much of the international business literature the strength of competition from indigenous rivals is emphasized as a determinant of entry strategy into both production and distribution

local knowledge transfer and performance implications for alliance formation in asia foreign firms in host country environments frequently face location based disadvantages this study proposes three means channels of overcoming local knowledge disadvantages based on a sample of 558 japanese joint ventures jvs located in southeast and east asia we find that partnering with local firms the first channel can be a primary strategy for accessing local knowledge and improving jv performance jv experience in the host country the second channel also mitigates local knowledge disadvantages and leads to increased jv performance the third channel the foreign parent s host country experience leads to increased performance in the absence of a local partner however when a jv is formed with a local partner increased parent experience in the host country leads to decreased performance suggesting that the need for a local partner declines as parent experience in a host country increases

host market government corruption and the equity based foreign entry strategies of multinational enterprises while extant theory suggests that the pervasiveness of host market government corruption should influence the equity ownership decisions of foreign investing multinational enterprises mnes empirical research has produced inconclusive results we leverage insights from transaction cost economics to advance an uncertainty oriented framework which can be used to explain the impact of host market government corruption on the equity based entry strategies of mnes we disaggregate government corruption into two distinct components grand corruption and petty corruption we propose that grand and petty corruption precipitate different types of uncertainty environmental and behavioral which motivate mnes to vary their equity based foreign entry strategies entry mode and partnering hypotheses pertaining to the entry strategies of mnes under conditions of more pervasive grand and petty corruption are developed and tested with a sample of 643 japanese investments in 30 countries between 2004 and 2007 we find that the main effect of grand corruption and the interaction between grand and petty corruption significantly impact a mne s entry mode further while more pervasive grand corruption increases the likelihood that a mne will engage in a joint venture investment with a host country partner we find that an increase in petty corruption heightens a mne s preference to invest with a home country partner

the impact of order and mode of market entry on profitability and market share market share performance and profitability of overseas business activities has long been an important issue in international business in this study we explore the impact of order and mode of market entry into an overseas market we find that early entrants have significantly higher market shares and profitability than late followers we also find that equity joint ventures have a higher profitability than either wholly owned operations or contractual joint ventures a significant interaction exists between order and mode of market entry as expected firm efficiency and size affect the performance of firms these results are based on the business activities of a sample of 14 466 foreign firms in china in 1995

accounting for endogeneity when assessing strategy performance does entry mode choice affect fdi survival firms choose strategies based on their attributes and industry conditions therefore strategy choice is endogenous and self selected empirical models that do not account for this and regress performance measures on strategy choice variables are potentially misspecified and their conclusions incorrect i highlight how self selection on hard to measure or unobservable characteristics can bias strategy performance estimates and recommend an econometric technique that has been developed to account for this effect although this concern applies to a wide range of strategy questions to demonstrate its effect i empirically examine if entry mode choice acquisition versus greenfield influences foreign direct investment survival in specifications that do not account for self selection i find that greenfield entries have survival advantages compared to acquisitions this confirms previous findings however the significance of this effect disappears once i account for self selection of entry mode in the empirical estimates the results confirm that estimates from models that do not account for self selection of strategy choice can lead to incorrect or misleading conclusions

beyond entry mode choice explaining the conversion of joint ventures into wholly owned subsidiaries in the people s republic of china while there is a vast amount of research on firms choice of ownership form when entering a foreign market little attention has been paid to changes in ownership forms of operation abroad after initial entry using transaction cost economics and institutional theory we identify a number of factors that may help to explain the likelihood of foreign firms converting their joint venture with a local firm into a wholly owned subsidiary we formulate a number of hypotheses and test them against data collected through a questionnaire survey of managers representing foreign subsidiaries in the people s republic of china prc that are run either as international joint ventures ijvs or as wholly owned foreign subsidiaries wfoes that have recently been converted from ijvs into a wfoe the paper contributes to research by showing that transaction cost based thinking is useful for explaining not only the initial choice of ownership mode when entering a new market but also the potential subsequent changes of this ownership mode by combining transaction cost theory with arguments from institutional theory the study identifies a number of factors that contribute to explaining post entry changes of foreign firms ownership forms in the prc and provides empirical evidence of this phenomenon

hotelling s spatial competition as a model of sales abstract hotelling s spatial competition model is used to explain the existence of sales it is shown that 1 an equilibrium in randomized strategies exists when a pure strategy equilibrium fails to exist 2 with more dissimilarity among brands prices are chosen from a wider interval

environmental and resource economics a canadian retrospective the paper reviews research contributions to environmental and resource economics by scholars in canada we focus mainly on work from the past 25 years but also highlight earlier pathbreaking work we begin by looking at broad trends in research both internationally and within canada we then review canadian contributions to various topics in the field canadians have played a leading role in the development of the field especially in resource economics international environmental economics and the valuation of environmental amenities

global strategy and multinationals entry mode choice this paper makes a case directed towards establishing the importance of global strategic considerations in choosing multinationals entry mode specifically it is our contention that beyond the environmental and transaction specific factors well established in the literature to affect the entry mode decision we should also consider the strategic relationship a multinational envisages between its operations across borders in reaching this decision after incorporating various global strategic variables into an eclectic framework of the factors influencing the entry mode choice this paper tests both the validity of the overall framework and the importance of each entry mode determinant in differ entiating among entry modes this is done based on ninety six multinational managers responses to a survey questionnaire concerning their entry mode decision experiences the results suggest that an express incorporation of global strategic variables into an analysis of the entry mode decision is warranted

cross cultural interaction the international comparison fallacy international management studies have been based primarily on the comparison of managerial behavior in countries around the world often these studies have implied that business people behave similarly with their domestic colleagues as with their foreign counterparts in questioning that assumption this study tests whether intra cultural behavior accurately predicts cross cultural behavior using a negotiation simulation and a sample of 462 japanese american and canadian businesspeople behaviors in cross cultural negotiations were found to differ in some important ways from those in intra cultural negotiations

foreign market entry strategies and post entry growth acquisitions vs greenfield investments we examine the relationship between the foreign market entry strategy and the subsequent growth of a subsidiary we build upon the penrose theory of firm growth and on the organizational economics international management and foreign market entry strategy literatures we hypothesize that the post entry growth of acquisitions is positively associated with weak and codifiable interdependence within the multinational enterprise network whereas the post entry growth of greenfield investments is positively related to strong and complex interdependence empirical findings from a sample of japanese subsidiaries in the us lend support to our argument

the trap of continual ownership change in international equity joint ventures this article examines how multiple ownership changes unfold in international equity joint venture iejv evolution and how such repeated changes impact short term performance and long term survival by theorizing a new concept the trap of continual change in the iejv context we challenge the adaptive viewpoint assumed in alliance dynamics research we propose that partners sometimes respond to an initial dissatisfaction with the venture result with a dysfunctional repetition of rearranging the ownership control structure this continual change locks the organization into bad choices and sends it into a downward spiral acknowledging the mixed motive nature of inter partner relationships we incorporate cooperative versus competitive dynamics manifested in shared control arrangements we propose that shared ownership control lends stability to the iejv until the initial iejv agreement is renegotiated this stability is a result of the cooperative forces of mutual interdependence and mutual forbearance between the partners however when the power balance breaks down the potential for inter partner conflict increases when the ownership control structure of the iejv is restructured especially multiple times shared control arrangements become increasingly unstable as behavioral cultural and managerial differences are amplified

capabilities as a mediator linking resources and the international performance of entrepreneurial firms in an emerging economy this study investigates an under researched topic the relationships between capabilities resources and international performance among entrepreneurial firms in an emerging economy we combine the resource based view of the firm and the capability building perspective of rent creation to shed light on the crucial role of firm specific capabilities that transform key resources into performance outcomes employing a large sample of chinese entrepreneurial firms our investigation demonstrates that while the resources of institutional capital and managerial ties are important in the internationalization effort their effects on international performance are channeled through each firm s adaptive capability this adaptive capability is the firm s ability to coordinate recombine and allocate resources to meet the different requirements of foreign markets specifically our research is able to demonstrate support for the mediating role of capabilities in the relationship between resources and international performance the implications of these findings for theoretical development and future research are discussed

performance and survival of joint ventures with non conventional ownership structures the international joint venture jv literature has focused on two parent jvs formed between one foreign and one local firm yet other types of jvs exist this paper identifies four distinct forms of jvs based on the jv partners nationality and equity affiliation these are i jvs that are formed between affiliated home country based firms ii jvs that are formed between unaffiliated home country based firmsl iii jvs that are formed between home country based and local firms and iv jvs that are formed between home country and third country based firms our analysis of 737 japanese jvs in asia demonstrates that the conventionally assumed form of jv represented only 30 percent of the total further each of the four jv forms significantly differed in terms of incidence performance and survival likelihood

the characteristics and performance of korean joint ventures in ldcs little has been reported on joint ventures between firms from newly industrialized countries and developing countries this paper examines twelve characteristics of a sample of korean firms with partners in developing countries ldcs and contrasts them with existing research where a developed country firms have linked with firms in other developed countries and b developed country firms have linked with local firms in developing countries as part of the analysis ten hypotheses were formulated and tested

transaction cost determinants and ownership based entry mode choice a meta analytical review entry mode choice is a critical ingredient of international entry strategies and has been voluminously examined in the field the findings however are very mixed especially with respect to transaction cost related factors in determining the ownership based entry mode choice this study conducted a meta analysis to quantitatively summarize the literature and empirically generalize more conclusive findings based on the 106 effect sizes of 38 empirical studies the meta analysis shows that the findings of the existing studies are moderated to varying degrees by both study setting factors and statistical artifacts although the combined overall effects of transaction cost based determinants are consistent with the predictions of transaction cost economics we extensively discuss the implications of meta analytical results especially moderating effects of location country of origin industry type and statistical artifacts highlight the measurement adequacy equivalence and multidimensionality of transaction cost determinants and present our suggestions to improve theoretical inquiries and empirical verifications on entry mode choice

the motives for international acquisitions capability procurements strategic considerations and the role of ownership structures multinationals can start up greenfield entities or acquire existing firms to enter foreign nations regardless of the choice of greenfield investment vs acquisition they can control full equity i e wholly owned subsidiaries or share ownership with local partners i e joint ventures depending on the stake taken in the targets therefore international acquisitions can be classified into two major categories full or partial although this distinction is missing in most previous studies in this paper i propose that the motives for acquisitions vs greenfield investments are specific to whether entries are made through full or partial ownership in that full acquisitions are driven mostly by capability procurements whereas partial acquisitions are motivated by other strategic considerations by splitting a sample of japanese investments in the us into two sub regimes the study has found that the decision on joint ventures vs wholly owned subsidiaries dictates the determinants that shape the choice between greenfield and acquisitive entries there is also evidence that japanese investors self select the decision on full or partial ownership to justify the strategy that they have chosen to enter the us these findings offer new insights into the role of ownership structures in shaping the choice of entry strategies

is dunning s eclectic framework descriptive or normative can dunning s oli ownership location internalization framework be used to predict the best performing international entry modes or merely the most commonly selected modes using data from german and dutch firms investing in central and eastern europe we investigate the relationship between dunning s oli variables entry mode selection and managerial satisfaction with firm performance we found empirical support for dunning s framework as both a descriptive and a normative model

the experience factor in foreign market entry behavior of service firms the paper examines the effect of international experience on service firms selection of foreign markets and entry modes the investigation utilizes survey date from 151 united states based service firms results on market selection suggest that as their experience increases and becomes geographically more diversified service firms tend to choose markets that are culturally less similar to their home country on entry mode choice the paper departs from traditional linear conceptualizations and hypothesizes a u shaped relationship between experience and propensity for integrated entry modes results generally support the hypothesis the paper explains these findings and describes how service firms resemble and differ from manufacturing firms in their foreign market entry behavior

a retrospective on institutional cultural and transaction cost influences on entry mode choice and performance for several decades researchers have focused on the entry mode decision because it is critically important for firms expanding abroad despite this attention we still lack clear tools to help managers make effective entry decisions in this paper i review past research exploring transaction cost and institutional perspectives of mode choice provide a critique of this literature and generate suggestions to move our knowledge forward in addition i review the limited research exploring entry mode performance and emphasize the importance of examining the normative merits of proposed theoretical models i hope these suggestions will lead to the development of prescriptive tools for managers to make better entry mode decisions that result in improved firm performance

the effect of national culture on the choice of entry mode characteristics of national cultures have frequently been claimed to influence the selection of entry modes this article investigates this claim by developing a theoretical argument for why culture should influence the choice of entry two hypotheses are derived which relate culture to entry mode choice one focusing on the cultural distance between countries the other on attitudes towards uncertainty avoidance using a multinomial logit model and controlling for other effects the hypotheses are tested by analysing data on 228 entries into the united states market by acquisition wholly owned greenfield and joint venture empirical support for the effect of national culture on entry choice is found

location specificity and the transferability of downstream assets to foreign subsidiaries we investigate the effect of firm specific advantages being local in scope and the influence of subsequent location specific disadvantages on the choice of foreign entry mode and subsidiary performance to look into this issue we examine japanese fdi data from the wholesale and retail industries two sectors that have productive activity concentrated in downstream processes and location bound resources our theoretical and empirical analyses demonstrate that in situations where required capabilities must be developed through local experience and where location specific resources were subject to market failure acquisition and joint venture strategies were preferred greenfield entries were successful in industries that permitted the offsetting of location specific disadvantages with firm specific advantages from our results we draw implications for the entry mode literature and offer a perspective on the performance of the entry mode choice

on the future of international joint venture research international joint ventures ijvs are an important type of international strategic alliance isa and have been studied by scholars for decades resulting in a plethora of empirical studies publications and reviews yet an inadequate accumulation of knowledge exists as a closer look reveals much more than providing a summary and critical assessment of past contributions this paper develops an expansive research agenda based upon a deep understanding of past research and comprehensive frameworks that distill this research we identify a number of research opportunities that would not only advance ijv research but also closely related literatures and disciplines such as isas theories of the multinational firm international business research and strategic management

fit misfit and beyond fit relational metaphors and semantic fit in international joint ventures we propose that metaphorical descriptions of newly formed international joint ventures ijvs contain important diagnostic information regarding the way these cross border alliances are managed and perform in three studies we examine how relational metaphors reflect semantic fit or the ijv partners cognitive match of managerial schemas and their capability to recontextualize communications regarding alliance operations we find ijv partners that share relational metaphors achieve superior outcomes reflecting aligned managerial approaches to controlling shared resources and joint activities further formal ownership as equity share moderates the impact managerial schemas implied by metaphors have on subjective time lagged performance of ijvs our analysis of metaphorical language not only reveals the way newly formed ijvs are managed but also highlights performance variations associated with complex patterns of ijv controls

technological capabilities of countries firm rivalry and foreign direct investment studies on foreign direct investment fdi have concentrated on sectoral effects but rarely on country patterns in this paper we use u s department of commerce data to identify the largest country shares of new fdi entries into the u s and the technological motivations for their investments based on the technological intensities of major investing countries in manufacturing industries we conclude that technological industries attract a disproportionate share of fdi entries however the acquisition of u s technology is not a major motivation the findings indicate that industry rivalry is an important dimension to understanding fdi

the role of global dynamic managerial capability in the pursuit of international strategy and superior performance we develop the construct of global dynamic managerial capability gdmc and identify its underlying sources 1 international human capital 2 international social capital and 3 international managerial cognitions consistent with dynamic capabilities view and upper echelons theory we suggest that gdmc leads to global asset orchestration which in turn results in superior company performance in a two stage process first gdmc leads companies to adopt global strategies that spread the risk of internationalizations across different entry modes and geographic regions second the re configuration of global assets positively influences subsequent firm performance and thus mediates the relationship between gdmc and performance recognizing the triad of factors that form global dynamic managerial capability is crucial when selecting future managers of multinational corporations hence firms with increasing international exposure both domestically via foreign competition and internationally via foreign market presence may seek to compose their upper echelons with a suitable combination of international human and social capital as well as internationally diverse cognitions in the pursuit of sustained competitive advantage

cooperative strategies between foreign firms in an overseas country in this paper we study the cooperative strategies between two firms in an overseas country in part 1 we examine the circumstances under which foreign firms would cooperate with another foreign firm in a third country market drawing upon existing literature we develop and test a set of hypotheses using a longitudinal data set from china the types of cooperative arrangements include all the major modes of operation in part 2 we further investigate what types of operation and level of control exist among the cooperative arrangements between two foreign firms in china we used a sample of 483 cooperative arrangements between two firms from hong kong the u s japan germany or britain this study offers interesting insight as to why foreign firms form cooperative arrangements in an overseas country and what types of cooperative arrangements these firms prefer

interdependent behavior in foreign direct investment the multi level effects of prior entry and prior exit on foreign market entry this paper examines the interdependent foreign market entry decisions of multinational corporations mncs based on the argument that legitimacy and competition are two important forces in foreign market entry decisions we hypothesize that an mnc s market entry decisions are influenced by its own prior entry and prior exit decisions and those of other mncs we examine this general proposition at four levels of analysis the host country global industry an industry that spans host countries local industry an industry that is separately defined within each host country and parent firm level our analysis of a panel data of over 4000 market entry decisions that were made by japanese mncs shows that an mnc s market entry decision has a stronger inverted u shaped relationship with the prior entry and exit decisions of other mncs at the local industry level than the prior entry and exit decisions of other mncs at the host country and global industry levels we also find that both the prior entry and prior exit decisions of an mnc have a marginal influence on its own subsequent market entry decisions at the parent firm level

new ventures or acquisitions the choice of swedish multinational enterprises this study examines the factors influencing the multinational enterprises choice between the takeover of already existing firms and investments in new ventures as a means of entering a foreign market the results suggest that the degree of industrial diversification of the parent company and the host country s per capita income seems to have a positive influience on the propensity for takeovers this propensity appears to be negatively related to the rate of growth of industrial production in the industry entered further we found that the more recent the entry into a foreign market the greater the probability for choosing acquisition

equity joint ventures and the theory of the multinational enterprise this paper extends the internalization approach to the theory of the multinational enterprise mne to include an expanded role for equity joint ventures using the transaction cost paradigm of williamson this paper explains why joint ventures may sometimes be preferred over wholly owned subsidiaries also presented is empirical work on joint venture performance in developing countries which demonstrates that under certain conditions joint ventures can be the optimal mode of foreign direct investment

the transaction costs theory of joint ventures an empirical study of japanese subsidiaries in the united states this paper offers the first large sample empirical study of the factors which influence the choice of japanese firms between full or partial ownership of their u s manufacturing subsidiaries it studies for the first time the ownership policies of investors of a single home country in a single host country thus keeping variations within home and host countries constant one methodological improvement over previous studies is the use as independent variables of the relevant characteristics of the investing firms these had been proxied in previous studies by data on u s industries entered the results suggest that the degree of ownership taken by japanese manufacturing investors in their american subsidiaries is driven by the same general transaction costs variables that determine the choices made by their u s counterparts japanese parents joint venture when they need to combine with other firms intermediate inputs which are subject to high market transaction costs an intriguing result however is the lack of significance of two variables which in the u s case strongly push towards full control of foreign subsidiaries in this study neither the japanese parent s r d nor its advertising intensities had any significant impact on their ownership policies

parent firm performance across international joint venture life cycle stages the benefits that firms obtain from investing in international joint ventures ijvs can be reinforced or reduced by the management of later stages of collaboration this paper presents an analysis of the shareholder wealth effects of ijv formation and five types of ijv termination the empirical findings challenge common assumptions in the ijv literature contrast prior evidence on the performance implications of market entry and exit through acquisitions and divestitures and demonstrate the value of integrating ijv life cycle stages in future research

national culture transaction costs and the choice between joint venture and wholly owned subsidiary transaction cost theory posits that culture plays a limited role in the choice between jv and wos in contrast research suggests that firms preferred level of ownership in their foreign subsidiaries is influenced primarily by cultural traits this study provides additional evidence in this ongoing debate by replicating hennart s transaction cost model of entry mode choice in two different national contexts japanese firms investing in the u s and the u s firms investing in japan the results suggest that the transaction cost explanation for the ownership choice holds in the both national contexts yet the propensity to choose jv or wos significantly varied between japanese and the u s firms

financial performance and survival of multinational corporations in china this study investigates the impact of entry timing mode of entry market focus and location advantages on the financial performance and survival of multinational corporations mncs in china three major results were found first mncs that entered china in an earlier year had a higher level of profit than those that entered in a later year second equity joint ventures ejvs had a higher profit level than cooperative operations or wholly foreign owned subsidiaries third mncs that utilized well the location advantages in china had a higher profit we also found that ejvs were more likely to survive compared to cooperative operations while wholly owned subsidiaries did not differ from ejvs the findings are based on a 2 year study of about 1000 mnc operations in china copyright 1999 john wiley sons ltd

comparative business failures of foreign controlled firms in the united states we explore the comparative business failures of foreign owned or controlled firms and domestically owned firms original data are collected regarding foreign controlled firms in the u s that filed for bankruptcy protection were involuntarily liquidated or ceased operations mainly due to poor financial performance during the 1978 1988 period our results show that foreign controlled firms fail less often than domestically owned firms the patterns of foreign controlled business failures and the impacts of entry modes ownership types and national culture on the failures of foreign controlled firms are also examined

internationalization trajectories a cross country comparison are large chinese and indian companies different this paper explores whether the internationalization trajectories patterns over time in the level pace variability and temporal concentration of international expansion of large firms from china and india are fundamentally different from those of developed country firms a longitudinal cross country comparative study of 256 large firms for the 1990 2004 period shows that although internationalization trajectories of large and leading chinese and indian firms are indeed different there are also considerable similarities between established developed country firms and the new firms from emerging markets not in the least because they often interact within the same sector

closure and divestiture by foreign entrants the impact of entry and post entry strategies we analyze the longevity of foreign entrants explicitly considering two possible ways of exit firm closure and capital divestiture we find that entry and post entry strategies affect the longevity of firms and of foreign equity holdings but in different manners while the ownership arrangements and organizational structure affect the likelihood of divestment they exert no significant effect upon closure the entry mode exerts opposite effects on the two modes of exit greenfield entrants being more likely to shutdown but less likely to be divested only human capital affects closure and divestment in the same manner firms with large endowments of human capital are less likely to exit irrespective of the exit mode considered copyright 2000 john wiley sons ltd

an investigation into the overseas expansion of small asian owned u k firms this paper contributes to the growing body of knowledge in international entrepreneurship by reporting on a qualitative empirical investigation into the overseas expansion processes of small asian originating from the indian sub continent owned firms operating in the u k clothing industry the key decision makers within these firms frequently identified themselves as an active and important influence upon the actual activities of their firms as international operators for some firms though a more passive approach to internationalisation could be identified whereby the receipt of unsolicited orders had an effect on some firms timing of overseas market entry the balance between the nature of opportunities that frequently derived from cultural networks and the constraints of a limited resource base with which to exploit those opportunities also had a major impact on the direction and pace of certain firms overseas expansion the findings suggest a general tendency to adopt an incremental approach to internationalisation within this mature trade sector the cultural and business experience of managers however was found to have an effect on the pace and direction of the overseas expansion recommendations on the likely efficacy and effectiveness of public private sector interaction within the area of international entrepreneurship involving entrepreneurs from asian backgrounds are offered

yes we really do need more entry mode studies a commentary on shaver in a recent commentary published in this journal shaver raises the provocative question of whether we need more entry mode studies after assessing the reasons for shaver s doubts and further developing his broad research suggestions we conclude that this question should be answered affirmatively we derive three important questions for future entry mode research 1 what determines the evolution of operations resulting from suboptimal mode choices 2 what causes the replication of past mode choices 3 how is the entry decision process structured focusing on these questions should assure a bright future for entry mode research

towards an economic theory of the multiproduct firm this paper outlines a theory of the multiproduct firm important building blocks include excess capacity and its creation market imperfections and the peculiarities of organizational knowledge including its fungible and taut character a framework is adopted in which profit seeking firms are seen to diversify in order to avoid the high transactions costs associated with using various markets to trade the services of various specialized assets neoclassical explanations of the multiproduct firm are shown to be seriously deficient

modes of foreign entry a transaction cost analysis and propositions a frontier issue in international marketing is the appropriate choice of entry mode in foreign markets the objective of this paper is to offer a transaction cost framework for investigating the entry mode decision this framework provides 1 a theoretical basis for systematically interrelating the literature into propositions 2 propositions about interactions which resolve the apparently contradictory arguments advanced to date specifically the paper illustrates the feasibility of clustering 17 entry modes into the degree of control the mode provides the entrant proposes that the most appropriate i e most efficient entry mode is a function of the tradeoff between control and the cost of resource commitment advances testable propositions delimiting the circumstances under which each mode maximizes long term efficiency

timing of entry in international market an empirical study of u s fortune 500 firms in china this study attempts to explain the timing of entry of firms in international markets based on the existing literature we propose a framework that consists of firm specific factors industry market factors and host country factors empirical results based on the entry information of u s fortune 500 firms in china between 1979 and 1996 show that larger firms with greater level of internalization and scope economies are likely to enter this foreign market earlier in addition non equity modes competitors behavior in the product market and lower levels of country risk are significantly associated with early entry