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We compare the effects of transactional, institutional and experience influences on the ownership strategies of Japanese investors. Our theoretical development suggests that the equity position of a foreign investor should increase as the specificity of the assets transferred to the foreign affiliate increases, but a lower equity position should be assumed(More)
Although it is established that firms sometimes expand abroad to augment their capabilities, previous studies have generally focused on technological determinants of foreign expansion. We analyze capability-seeking aspects of foreign direct investment by examining the relationship between upstream (technological) and downstream (marketing) capabilities and(More)
Cross-national variation in institutional environments adds uncertainty to foreign operations, which in turn affects international strategy decisions such as when to enter a market, the entry mode used if entering, and the performance of foreign entries. Although all firms are exposed to the influence of a host country's institutional environment, firms(More)
This study examines 2,933 cases of Japanese investment in 27 provinces and regions in China to identify the role that policy determinants had in influencing the sub-national location decision of Japanese firms in China. The empirical results show that the Special Economic Zones (SEZs) and Opening Coastal Cities (OCCs) were a successful policy instrument(More)
This paper combines neoinstitutional theory and research on political institutions to explain the process of organizational entry into new geographic markets. We extend neoinstitutional theory's proposition that prior decisions and actions by other organizations provide legitimization and information to a decision marked by uncertainty. We show this effect(More)
" What determines the scope of the firm? " is a fundamental question in strategy research. We argue that a new generation of diversification research needs to address the extended question: What determines the scope of the firm—both product and geographic— over time and around the world? This article has three goals: (1) to increase awareness among(More)
Through a meta-analysis of 120 independent samples reported in 111 studies, we test the predictions of internalization theory in the context of the multinationality-performance relationship. Findings indicate that multinationality provides an efficient organizational form that enables firms to transfer their firm-specific assets to generate higher returns(More)
We examine the link between international diversification, organizational knowledge resources, and subsidiary performance. The success of international corporate diversification depends on a firm's capability to transfer knowledge to its subsidiaries, and how its local subsidiaries effectively utilize that knowledge. As knowledge resources are imperfectly(More)
We examine the extent to which two sources of policy uncertainty influence foreign-owned subsidiary exit rates. We find that prior peer exits and a firm's own experience under the current political regime both have a strong influence on subsidiary exit rates, particularly in the presence of policy uncertainty resulting from the existing structure of a host(More)