knowhow trading as economic exchange abstract knowhow trading is the informal exchange of practical technical knowledge between pairs of engineers and other technicians in different firms this paper explains the advantages and disadvantages of this particular mode of knowledge sharing from an economic perspective under a knowhow trading regime long term self selected partners barter knowledge ex post i e they exchange information already known to one of them the paper explains why barter is better suited to the exchange of ideas than to the exchange of conventional goods and points out advantages of ex post knowledge sharing between firms whose priorities differ it is generally cheaper to acquire knowhow through exchanges than to reinvent the wheel but sharing knowhow can cut into the firm s competitive advantage pairwise exchanges limit although they do not eliminate the firm s loss of competitive advantage when it shares technical knowledge because knowhow trading is informal and off the books such trading is difficult for the firm to evaluate and to manage similarly since it eludes the traditional measures of economic activity knowhow trading is difficult to document and integrate into studies of the general economy

consideration review of research and prospects for future insights the authors review the behavioral underpinnings of consideration set formation and revisit the theoretical and empirical evidence that led them to develop an individual level model of consideration

a status based model of market competition this article explores the significance of status processes for generating and reproducing hierarchy among producers in a market it develops a conception of a market as a status order in which each

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

market watch information and availability cascades among the media and investors in the u s ipo market in this study we advance current research on social influence in markets by examining how the recency and availability of information about others actions within and between different communities influence their allocation of attention and their evaluations specifically we examine how the media and investors allocate attention to and evaluate newly public firms in the days following their initial public offerings ipos our findings have implications for understanding the fieldwide processes through which the value of new firms is established in markets

getting off to a good start the effects of upper echelon affiliations on underwriter prestige the initial public offering ipo is one of the most critical events in the lifetime of a young firm prior research has shown that firms tend to have successful ipos if they go public with the endorsement of a prestigious lead underwriter this paper examines the antecedents to receiving endorsement by a prestigious underwriter and links this to the experience base of a firm s upper echelon we theorize that the amount and type of upper echelon experience serve as important symbols of a young firm s legitimacy to critical outsiders we introduce a typology of upper echelon experience that distinguishes between upper echelon upstream horizontal and downstream employment based affiliations and suggest that these different types of upper echelon affiliations allay different types of endorser concerns regarding firm legitimacy affecting the endorsement process further we theorize that the relationships between upper echelon experience and investment bank prestige will be moderated by technological uncertainty we test our assertions on a comprehensive sample of public and private biotechnology firms that were founded between 1961 and 1994 and that went public between 1979 and 1996 analyses of the five year career histories of the over 3 200 executives and directors that make up the upper echelons of these firms show that firms with upper echelons with affiliations with prominent downstream organizations i e pharmaceutical and or healthcare companies and with prominent horizontal organizations i e biotechnology companies are more likely to attract the endorsement of a prestigious investment bank we also find that the greater the range of upper echelon affiliations across the categories of upstream horizontal and downstream affiliations the more prestigious the firm s lead underwriter we also find that these latter results are moderated by technological uncertainty the present research has implications for the study of organizational legitimacy interorganizational endorsements and entrepreneurship

home country networks and foreign expansion evidence from the venture capital industry we propose that home country network advantages shape firms foreign expansion we argue that a social status advantage is transferable from one market to another as a signal of quality but that a

eoq models for a coordinated two level international supply chain considering imperfect items and environmental impact abstract for a two level supply chain models are presented to determine the optimal production shipment policy for items with imperfect quality in three different scenarios a both the vendor and the buyer are in the same country b the vendor and the buyer are in different countries where the stochastic behavior of the exchange rate between the two countries is modeled using a mean reverting process and c environmental impact is incorporated in determining the optimal production shipment policy by taking into account the fixed and variable carbon emission costs the objective is to minimize the total expected cost per unit time for each scenario considering equal shipment size the total expected cost per unit time is derived and the solution procedure is proposed numerical examples are presented and the results are discussed

origin of alliance portfolios entrepreneurs network strategies and firm performance alliance portfolios are ubiquitous and influential for firm performance extant research addresses attributes of high performing alliance portfolios but not how executives originate such portfolios

an eoq model with partial backordering and advance payments for an evaporating item abstract in the classic economic order quantity model the purchasing cost of an order is paid at the time of its receipt in some cases retailers ask purchasers to pay all or a fraction of the purchasing cost in advance and may allow them to divide the prepayment into several equal sized parts in this paper an economic order quantity model for an evaporating item with partial backordering and partial consecutive prepayments is developed with a real case study of a gasoline station real numerical examples illustrate the proposed model and the solution method

the positive externalities of social capital benefiting from senior brokers the importance of an actor s network to his her private benefits is well explored less well understood are the positive externalities of an actor s social capital that is whether it spills over a

sustainable economic production quantity models for inventory systems with shortage abstract recently new economic order production quantity models have shifted away from focusing only on economic issues and towards combined economic environmental concerns because of sustainable development goals despite this shift only a few works have addressed sustainable economic production quantity epq the theoretical sustainable eoq and epq models are basic models that ignore many real life conditions such as the possibility of stock out in inventory systems in this paper we develop four new sustainable economic production quantity models that consider different shortage situations to find optimal values of inventory system variables we solve four independent profit maximization problems for four different situations these proposed models include a basic model in which shortages are not allowed and when shortages are allowed the lost sale full backordering and partial backordering models can be selected by operations managers depending on the manufacturer s motivation to improve service levels we have also proposed an algorithm for determining optimum values of the decision variables for these sustainable economic production quantity models finally the formulated models are explained with some different examples and the obtained results have been analyzed and discussed these results show that the sustainable economic production quantity with partial backordering model is a general and more realistic model that can be used in many real cases with a reasonable profit amount compared with the three other proposed models

domestic alliance network to attract foreign partners evidence from international joint ventures in china partner selection is a critical issue in building international joint ventures ijvs we argue that foreign firms are more likely to select local firms with unique network structural advantages within a local alliance network we frame structural advantages as two network position traits centrality and brokerage specifically network centrality acts as a stronger network trait than brokerage in attracting foreign ijv partners however such a relationship may be moderated by foreign firms local experience and perceived capabilities we contend that when foreign firms have a high level of local market experience and perceived capabilities they may prefer a local broker over a centrally located local firm data on the domestic alliance network in china s electronics and information technology it industries largely support our hypotheses we conclude that as foreign investors become strategic insiders they may not only seek a local partner s capability attributes but also more critically pay attention to a local partner s domestic network

partner selection and venturing success the case of joint ventures with firms in the people s republic of china it has been hypothesized in the international joint venture ijv literature that partner selection affects interpartner fit which in turn influences a synergistic effect on ijv performance this study investigates the relationship between ijv success and the strategic and organizational traits of local partners we address this issue in the context of an emerging economy p r china newly emerging economies have in recent years become major hosts of direct investment by multinational corporations mncs because these rapidly expanding economies characterized by an exploding demand previously stifled by ideologically based government intervention provide tremendous opportunities which mncs can preempt mncs in such economies however face the challenges of structural reform weak market structure poorly specified property rights and institutional uncertainty right local partners can help mncs boost market expansion obtain insightful information mitigate operational risks and provide country specific knowledge the analysis of the data obtained from china suggests that both strategic and organizational traits of local partners are significantly associated with some individual dimensions of ijv performance among strategic traits absorptive capacity product relatedness and market power are favorable to ijvs market and financial outcomes market power and experience significantly reduce ijvs operational uncertainties of organizational traits international experience and organizational collaboration are important for ijvs not only profitability and stability but also local market expansion and export growth organizational form and size influence ijvs local market performance the findings provided by this study can help mncs determine what criteria they should use in opting for local partners and what criteria are vital to their goal accomplishment those investors seeking local market expansion should select those local partners that have rich market experience superior market position high absorptive capacity and related product diversification with the ijvs those seeking profitability and stability should select local firms that have superior international experience longer organizational collaboration and greater market power while mncs should use appropriate strategic and organizational criteria to select local partners the host government or local firms can try to make these traits available to attract more stable and profitable foreign direct investment

strategic determinants of partner selection criteria in international joint ventures prior studies are vague regarding determinants of criteria for selecting complementary partners for international joint ventures ijvs this paper first distinguishes task and partner related dimensions of selection criteria the paper then argues that relative importance of task related selection criteria is determined by the strategic context of the proposed ijv and the parent firm specifically the critical success factors of the venture s competitive environment and the parent s static and dynamic position vis a vis these factors

international expansion of emerging market enterprises a springboard perspective in this article we present a springboard perspective to describe the internationalization of emerging market multinational corporations em mnes em mnes use international expansion as a springboard to acquire strategic resources and reduce their institutional and market constraints at home in so doing they overcome their latecomer disadvantage in the global stage via a series of aggressive risk taking measures by aggressively acquiring or buying critical assets from mature mnes to compensate for their competitive weaknesses we discuss unique traits that characterize the international expansion of em mnes and the unique motivations that steer them toward internationalization we further delineate peculiar strategies and activities undertaken by these firms in pursuit of international expansion as well as internal and external forces that might compel or facilitate their propulsion into the global scene we finally explain the risks and remedies associated with this international springboarding strategy and highlight major issues meriting further investigation

when and where does foreign direct investment generate positive spillovers a meta analysis local firms may attract productivity spillovers from foreign investors yet these vary with local firms awareness capability and motivation to react to foreign entry in consequence spillovers vary across countries at different levels of economic development we apply competitive dynamics theory to analyze these contextual moderators of spillovers and test hypotheses thus derived in a meta analysis of the empirical literature on spillovers our analysis suggests a curvilinear relationship between spillovers and the host country s level of development in terms of income institutional framework and human capital

the contributions of the economics of information to twentieth century economics in the e eld of economics perhaps the most important break with the past one that leaves open huge areas for future work lies in the economics of information it is now recognized that information is imperfect obtaining information can be costly there are important asymmetries of information and the extent of information asymmetries is affected by actions of e rms and individuals this recognition deeply affects the understanding of wisdom inherited from the past such as the fundamental welfare theorem and some of the basic characterization of a market economy and provides explanations of economic and social phenomena that otherwise would be hard to understand i introduction the century coming to a close has seen vast changes in economics in both ideas and methodology upon ree ection it is remarkable however how many of the seeds of advances in this century were sowed in the previous i would argue that perhaps the most important break with the past one that leaves open huge areas for future work lies in the economics of information the recognition that information is imperfect that obtaining information can be costly that there are important asymmetries of information and that the extent of information asymmetries is affected by actions of e rms and individuals has had profound implications for the wisdom inherited from the past and has provided explanations of economic and social phenomena that otherwise would be hard to understand in this essay i wish to argue that information economics has had directly and indirectly a profound effect on how we think about economics today eighteenth and nineteenth century antecedents to be sure marshall and other nineteenth century economists talked about problems of imperfect information but with one exception discussions of information were obiter dicta caveats at the end of the analysis they were never at the center

the carbon constrained eoq model with carbon emission dependent demand abstract currently companies are looking for solutions to reduce carbon emissions associated with their operations operational adjustments such as modifications in batch sizes or order quantities have proven to be an effective way to decrease emissions in this paper a novel model is proposed that takes into account the link between an inventory policy eoq total carbon emissions and both price and environmental dependent demands in the case of an exogenous price two optimal quantities are determined which maximize a retailer s profit and which minimize carbon emissions conditions that allow a company to maximize profit while minimizing emissions and mechanisms that allow a firm to maximize its profit and to decrease its carbon emissions are determined in the case of an endogenous price some empirical results are also discussed when a firm optimizes its profit through both its selling price and its order quantity some experiments match empirical observations on the one hand an environmental strategy is more significant for cheaper and green labeled products on the other hand a public mechanism such as a carbon tax will decrease total and marginal emissions

managing tacit and explicit knowledge transfer in ijvs the role of relational embeddedness and the impact on performance drawing on organizational learning and economic sociology we address how relational embeddedness between the foreign parent and international joint venture ijv managers influences the type of knowledge i e tacit and explicit transferred to the ijv and how the importance of relational embeddedness varies between young and mature ijvs we also examine the influence of tacit and explicit knowledge on ijv performance our results show the importance that tie strength trust and shared values and systems play in the transfer of tacit knowledge especially for mature ijvs our findings are consistent with uzzi s tenets tacit learning is accumulative assists in explaining explicit knowledge and is enhanced by social embeddedness we also find that the influence of transferred tacit knowledge on ijv performance stems principally from its indirect effect on the learning of explicit knowledge

role of multiple stakeholders and the critical success factor theory for the sustainable supplier selection process abstract the concept of sustainability has become an essential theme for many industries and organisations due to a heightened sensitivity towards environmental protection and social responsibility at the same time firms still need to achieve economic viability and retain their competitive advantage because suppliers are the first entity and the initial source of any supply chain organisations should select their suppliers by a careful evaluation of their critical success factors csf achieving a successful sustainable supply chain management sscm strategy requires a firm to consider its stakeholders views based on the csf theory and by considering the multi stakeholders view in a sustainability perspective this work provides a decision support system for the sustainable supplier selection sss problem in a real world textile industry located in the emerging economy of india through a three phase methodology this study examines indian suppliers by considering the sustainability views of various stakeholders including employees customers researchers shareholders and a government environmental officer the csf priorities show that the first four influential csfs are categorized as social concerns i e maintaining long term relationships and alliances stakeholder empowerment equity labour sources and individual human rights the fifth factor is an environmental issue i e production of polluting agents among the five suppliers being evaluated in this work supplier 4 receives the top ranking specifically the results show that the supplier rankings are highly influenced by csf s social dimensions hence to validate the influence of csf s social dimensions in relation to the sss process a sensitivity analysis has been done by varying the respective weights the study concludes with the relevant managerial implications and limitations

including sustainability criteria into inventory models research on sustainability performance has considerably enriched operations management literature in recent years however work with quantitative models is still scarce this paper contributes by revisiting classical inventory methods taking sustainability concerns into account we believe that reducing all aspects of sustainable development to a single objective is not desirable we thus reformulate the classical economic order quantity model as a multiobjective problem we refer to this model as the sustainable order quantity model then a multi echelon extension of the sustainable order quantity model is studied for both models the set of efficient solutions pareto optimal solutions is analytically characterized these results are used to provide some insights about the effectiveness of different regulatory policies to control carbon emissions we also use an interactive procedure that allows the decision maker to quickly identify the best option among these solutions the proposed interactive procedure is a new combination of multi criteria decision analysis techniques

a century of evolution from harris s basic lot size model survey and research agenda abstract determining the economic lot size has always represented one of the most important issues in production planning this problem has long attracted the attention of researchers and several models have been developed to meet requirements at minimum cost in this paper we explore and discuss the evolution of these models during one hundred years of history starting from the basic model developed by harris in 1913 up to today following harris s work a number of researchers have devised extensions that incorporate additional considerations the evolution of eoq theory strongly reflects the development of industrial systems over the past century here we outline all the research areas faced in the past by conducting a holistic analysis of 219 selected journal papers and trying to give a comprehensive view of past work on the eoq problem finally a new research agenda is proposed and discussed

beyond sustainability transforming industrial zero valued residues into increasing economic returns abstract excessive industrialization is creating enormous economic gaps chaos and unequal societies that are approaching dangerous limits simultaneously large quantities of residues waste and ecological footprints have been created in detriment to the natural environment and the quality of life of most of the planet s population mainly in developing regions this presents most innovators with a new dilemma invest in sustainable long term projects with low economic returns or innovate in short term incremental production and negotiate the environmental harm caused by an excessive industrialization in fact a significant milestone emerges from these arguments somehow we must reverse the perverse cycle created by industrialization and transform the current ecological footprint into valuable assets for all sub systems of the biosphere a proposal has been designed to go beyond sustainability and create sustainable wealth based on the modification of the conventional growth paradigm that can be used to regenerate regional natural resources and simultaneously be economically competitive and capable of offering important social benefits to the community the proposed framework swit sustainable wealth creation based on innovation and technology has been developed to provide multiple businesses of zero value residue industrial ecology processes zries inserted into circular value ecosystems cves all managed and governed by a sustainable sharing value system for the benefit of a community several cases of the application of the sustainable wealth creation framework mainly in developing countries are described

a sustainable production inventory model for a controllable carbon emissions rate under shortages abstract carbon emissions are the key factor of global warming nowadays some countries have focused on reducing carbon emission carbon tax and cap policies are the key mechanism utilized in many countries to achieve this keeping this issue in mind a sustainable economic production quantity sepq carbon tax and cap model has considered for a controllable carbon emissions rate by investing in green technology gt efforts under different with and without shortage situations this study has three models a a sustainable economic production quantity carbon tax and cap model with no shortages b a sustainable economic production quantity carbon tax and cap with partial backordering and c a sustainable economic production quantity carbon tax and cap with full backordering with and without green technology investment a solution methodology has been proposed for determining the optimal strategies of cycle time green technology investment and the fraction period length in positive inventory level several numerical examples have studied to validate the sustainable economic production quantity models the results of this paper are a sustainable economic production quantity carbon tax and cap partial backlogging case has a better justifiable profit with the highest cycle time and the lowest value of the fraction length period as well as the lower green technology investment cost compared with other models finally sensitivity analysis has provided with the managerial implication of the optimal feasible solution with respect to some key parameters

social ties and partner identification in sino hong kong international joint ventures partner identification is an important and under studied precursor to selection and eventual performance of international joint ventures ijvs the mechanics of the identification process were investigated in depth across a sample of eighteen sino hong kong ijvs using the case study research method the cross case findings of this exploratory investigation support the idea that social networks provide a valuable resource for reducing ijv partner search costs specifically the findings reveal that while weakly linked bridge ties are valuable in identifying potential partners searches based on strong ties tend to be shorter and provide a more robust basis for inter partner cooperation

international joint venture partner selection the role of the host country legal environment this study attempts to enhance our understanding of how a host country s legal environment influences international joint venture ijv partner selection criteria empirical results based on survey data collected on 169 ijvs revealed that host country rule of law perceptions negatively influence appropriation and coordination cost concerns which positively influence partner related criteria furthermore these concerns mediate the relationship between perceptions of host country rule of law and partner related criteria

environmentally responsible inventory models non classical models for a non classical era abstract mathematical models of inventory typically include the three inventory associated costs of surplus shortage and ordering these classic inventory models are then analysed so as to choose inventory parameters that usually minimise the total cost of operating the inventory system being investigated unfortunately classic inventory models do not provide a meaningful basis for analysing many real and increasingly important practical inventory problems and situations it is therefore not surprising that over recent years several authors have discussed these issues in broad terms and suggested that a new paradigm needs to be developed this paper develops some specific aspects of this discussion in particular the paper identifies a range of inventory problems that are not covered appropriately by traditional inventory analysis one of these is to design responsible inventory systems i e systems that reflect the needs of the environment the paper then examines the importance of inventory planning to the environment in greater detail for example packaging is important not only because of its costs and the protection that it provides to the inventory items but also because of its eventual effects on the environment in terms of the use of resources and potential landfill for similar reasons waste which can result from poor inventory management is highly important the location of stores is important because location affects transport costs thus the influence of the secondary aspects of most inventory models packaging waste and location are important but even more important are the inter relations with the total system in particular the location of the manufacturing plants and the effect that inventory planning has on the logistics chain potentially have considerable environmental implications inventory is part of a wider system however until the cost charged for an activity reflects the true environmental cost of that activity it is likely that decisions will be made on the basis of erroneous data in that situation we are faced with either determining the environmental cost of specific actions or to use environmental costs that are somewhat contrived in which case it may be more sensible to use very different performance measures and models the paper discusses these ideas and ways in which inventory policies may reassure us with our environmental concerns

the economic order quantity model revisited an extended exergy accounting approach abstract the economic order quantity eoq model has been popular among academicians and practitioners for decades despite the many variants of the eoq that have appeared in the literature to fine tune it to reality it still has limitations a major one is that it does not take into account the hidden costs inherent in inventory systems some of these costs relate to sustainability issues including environmental social labor and economic effects this paper considers some of these costs referred to as the exergetic costs and estimates them using the extended exergy accounting eea approach extended exergy accounting assigns equivalent exergetic values to capital labor and environmental remediation costs of a system the analysis combines the classical exergy analysis with the sustainability factors which are the labor capital and environment the paper uses an exergetic model to determine the eoq inventory policies for three firms operating in the usa germany and china the results show that the eoq is different for the three firms because the equivalent exergy of capital labor and environment remediation costs is different in each country

the sustainability of anaerobic digestion plants a win win strategy for public and private bodies abstract energy production from the anaerobic digestion of organic waste is widely recognized as a social and environmental opportunity since it allows reducing waste disposal and making waste management economically profitable however profitability of these plants is strongly affected by the quantity and the quality of wastes as well as by the availability of local subsidies the key role of incentive policies in the economic success of investments in biomass to energy plants is highly recognised and has led european union eu governments to promote the deployment of these plants incentive policies adopted in eu countries differ significantly in this paper an evaluation model based on cost benefit analysis is developed in order to identify the production based incentive rates making investments in anaerobic digestion plant economically feasible without reducing social and environmental positive impacts the model has been applied to the case of energy production plants from anaerobic digestion of cattle manure in order to investigate the influence of the plant size on the investment profitability different waste collection areas have been considered environmental performances of the plants have been evaluated by adopting a life cycle assessment approach results obtained confirm the environmental benefits achievable through the energy production from the anaerobic digestion of cattle manure however the current production based incentive rates provided in most eu countries revealed an inadequate balance between private and public interest since they make profitable the investments only in case of small plants

instrumental cardinal concerns for social status in two sided matching with non transferable utility in this paper we apply the instrumental approach to social preferences in order to distinguish among various shapes of preferences for social status in particular we consider the shape of reduced preferences that emerge in the equilibrium of a twosided matching model with non transferable utility cole et al 1992 1995 show that under full observability of potential mates attributes instrumental concerns for social status are ordinal i e only one s own rank in the distribution of attributes matters we show that when we depart from full observability instrumental concerns for social status become cardinal i e also other features of the distribution of attributes matter we also show that the actual shape of cardinal concerns depends on how individuals can deal with the informational asymmetry alternatively leading to upward concerns i e making comparisons with higher rank people downward concerns i e making comparisons with lower rank people or bidirectional concerns i e being both upward and downward

information costs and location of fdis within the host country empirical evidence from italy the literature on foreign direct investments fdis has analysed the location strategies of multinational enterprises across national borders but there have been few studies of location decisions by foreign investors within the borders of a single country the paper argues that the driving factors of these location choices have differing influences on indigenous and foreign investors specifically foreign investors suffer from a condition of adverse asymmetry in information costs compared to insiders thus foreign investors decisions on the location of their activities within a host country mainly reflect a rational responses to the existence of information costs

the structure of jibs s social network and the relevance of intra country variation a typology for future research we examine articles published in the journal of international business studies jibs and introduce a typology to support the relevance of intra country variation in international business ib based on social network theory our analysis uses multidimensional scaling to study 53 203 citations from 1158 qualifying jibs articles to determine the journal s social structure the results indicate that three current research clusters multinational enterprise knowledge development foreign entry and cultural effects and the internationalization process and national culture are based on established ib theory then we respond to calls in the literature to improve research concerning intra country variation and propose a typology of three dimensions social demographic and geographic to study the diversity of individual firm and economic activity in a country the social dimension evaluates the importance of modernist and traditionalist values the demographic dimension proposes differences between urban and rural settings and the geographic dimension discusses the relevance of border and interior locations we suggest a nested typology that unifies these three dimensions for continued use in ib future research opportunities related to jibs s social structure and the intra country variation typology are recommended

networks as the pipes and prisms of the market1 this article draws an analytical distinction between two types of market uncertainty egocentric which refers to a focal actor s uncertainty regarding the best way to convert a set of inputs to an output desired by a potential exchange partner and altercentric which denotes the uncertainty confronted by a focal actor s exchange partners regarding the quality of the output that the focal actor brings to the market given this distinction the article considers how the value of structural holes and market status vary with these two types of uncertainty the article proposes that the value of structural holes increases with egocentric uncertainty but not with altercentric uncertainty in contrast the value of status increases with altercentric uncertainty but declines with egocentric uncertainty thus actors with networks rich in structural holes should sort into markets or market segments that are high in egocentric uncertainty high status actors should sort into markets that are low in egocentric

learning to compete in a transition economy experience environment and performance does organizational learning as measured by experience in a host country affect international expansion performance if so does such a relationship between experience and performance hold over time how do the environmental forces in the host country affect such a relationship focusing on organizational learning by multinational enterprises mnes operating in a transition economy this study answers these three critical questions by exploring the relationships among experience environment and performance at the subsidiary level based on a recent survey of 108 mne subunits operating in china we find that the intensity and diversity of host country experience is an important predictor of subunit performance while the positive effect of the intensity of experience on performance diminishes over time the impact of the diversity of experience on performance remains unchanged moreover for mnes experiencing greater environmental dynamism complexity and hostility there is a stronger positive relationship between experience and performance