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01.06.2010 | Research Article

Dynamics of Experience, Environment and MNE Ownership Strategy

verfasst von: Ass. Prof. Jae C. Jung, Prof. Paul W. Beamish, Assoc. Prof. Anthony Goerzen

Erschienen in: Management International Review | Ausgabe 3/2010

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Abstract

This study investigates the conditions under which environmental and firm-level factors affect MNE ownership strategy.
We theorize that these effects are related to changes over time, which we subdivide into the aspects of absolute and relative magnitude.
We develop and test four hypotheses using longitudinal data on Japanese foreign direct investment (FDI).
At the environmental level, the proliferation of FDI opportunities significantly increases the use of international joint ventures (IJVs).
At the firm level, increase in FDI experience has a significant positive effect on the use of IJVs.

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For example, Chang and Rosenzweig (2001) found that a firm’s decisions for initial entry modes are different from subsequent entries.

Only Greenfield and expansion FDIs were counted.

NLFC is a Japanese government-owned financial institution, which is established under Japanese law. It provides various kinds of business loans to small and medium-sized enterprises (SMEs). NLFC defines firms with less than twenty employees as Small-Scale Enterprises. Firms must have at least fifty employees to qualify as a SME (NLFC 2003).

When we applied a two-year lag for the environmental variables, we found qualitatively similar results.

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Titel: Dynamics of Experience, Environment and MNE Ownership Strategy
verfasst von: Ass. Prof. Jae C. Jung
Prof. Paul W. Beamish
Assoc. Prof. Anthony Goerzen
Publikationsdatum: 01.06.2010
Verlag: SP Gabler Verlag
Erschienen in: Management International Review / Ausgabe 3/2010
Print ISSN: 0938-8249
Elektronische ISSN: 1861-8901
DOI: https://doi.org/10.1007/s11575-010-0039-y

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