International Clustering And Foreign Subsidiary Performance

The article discusses the development and testing of a network-based model of international clustering and foreign subsidiary performance in an attempt to determine how multinational companies (MNC) enter a foreign country to build their own foreign cluster. It focuses on the foreign peer network (FPN) to incorporate both the social and economic interactions within a cluster. An FPN is described as a set of social and economic relations among a group of foreign subsidiaries that are from the same home country and run same or similar businesses within a common geographic area in the host country. The initial condition of the FPN and its subsequent development is said to impose an imprinting effect on the subsidiaries\u27 performance

Which Ties Matter When? The Strategic Impact of Network Linkages on Foreign Subsidiary Survival

In addition to enriching the network theory by specifying the conditions under which business networks affect firm performance, our study contributes to the international strategic alliances literature in answering the questions of when to ally and with whom to ally for managers dealing with international expansions

A Network Based Theory Of Foreign Market Entry Mode And Post-Entry Performance

Foreign market entry through equity investment has been extensively studied and various theoretical lenses have been used. Most previous research also focuses attention on either the entry mode selection decision or the topic of post-entry performance, but rarely both. We build on existing research by developing a model of foreign market entry and post-entry performance that uses network theory and organizational ecology to provide a fuller explanation of this complex and critical multinational enterprise strategic behaviour. Four pairs of total eight propositions were developed and justified based on extent literature and sound logical reasoning. By focusing on both entry mode choice and the post-entry performance implications of these choices, we cover both sides of the logic of profit as a function of both costs and revenues. Finally, potential managerial implications are discussed at the end

Proceedings of 2012 Annual Meeting of the Academy of International Business-US North East Chapter: Business Without Borders

Proceedings of the 2012 Academy of International Business-US North East Chapter Fairfield, Connecticut, October 11-13, 2012. Business Without Borders. Host, John F. Welch College of Business, Sacred Heart University. Editor, Jang\u27an Tang. AIB-NE 2012 Conference Co-Chairs, Khawaja Mamun, Ph.D. and Jang\u27an Tang

Joint Venture Formation and Internationalization: A Japanese MNEs\u27 Perspective

This article investigates the dynamics of joint venture formation and performance during the internationalization process, using data on the international joint ventures formed by the 22 largest Japanese multinational enterprises (MNEs) over a 16-year period. Three themes emerged: (a) large multinational enterprises do not necessarily seek a controlling equity holding in their subsidiaries, (b) the number of partners is affected by the risk profile of the targeted host country and previous international experience, and (c) controlling equity ownership and the greater the number of partners in the joint venture increase the likelihood of survival but do not significantly influence financial performance

How First Mover Advantages and Agglomeration Economies Affect Foreign Entry Survival

While entry timing literatures suggest firms to enter a foreign market as pioneers to gain the first mover advantages, studies on entry locations recommend firms to enter a market where there is already a critical mass of their peers, i.e., to be late movers in order to benefit from the agglomeration effects. As two important dimensions of foreign entry strategy, entry timing and location literatures seem to offer opposite recommendations. To resolve this apparent paradox, this study builds a network-based foreign entry and performance model. We argue that these two dimensions of market entry are interdependent. Entry strategies that can achieve fit between these two dimensions will perform better. We found support for our arguments in an empirical analysis of a sample of Japanese MNEs’ nearly 10,000 FDI market entries spanning 16 years and in over 50 countries

Strategic Alignment and Foreign Entry Performance: A Holistic Approach of the Impact of Entry Timing, Mode and Location

Current research on foreign market entry and performance has generally partitioned into three separate research areas: entry timing, location and mode. Following a holistic system approach, this study builds a network-based foreign-market entry and performance model to examine simultaneously the joint impact of all these three dimensions (timing, location and mode) on foreign market entry survival. It is argued that these three dimensions are interdependent within an integrated strategic system of foreign market entry. The entry strategies that can achieve the systematic alignment internally among the three strategy dimensions and externally with the business environment will enhance foreign subsidiary\u27s survival chances. Support is found for the arguments in an empirical analysis of a sample of Japanese MNEs\u27 more than 10,000 FDI market entries in 57 countries

Characteristics and Performance of Foreign Direct Investment in Retail Trade: The Case of Japanese Firms

In the international business development, foreign direct investment (FDI) as a general phenomenon has been extensively studied, yet the understanding of particular characteristics of FDI in the retail industry remain limited. The success of international retail trade relies heavily on the understanding of consumers in the host countries. Therefore, this paper analyzed the characteristics and performance of foreign direct investment (FDI) in retail trade using the Japanese FDI data (JFDI) from 1986-2001 as a case. We found (1) an overall trend for JFDI to move from the developed countries to developing countries; (2) a modest correlation between subsidiary size and performance; (3) in certain countries/regions, a positive and significant correlation between entry mode and performance; and (4) a focus of JFDI on the USA and the Greater-China area. The results of this paper provide important implications for countries which want the FDI in retail trade and for companies which want to invest in international retail trade