Abstract
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.
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*Jiatao Li is a doctoral candidate in Organizations, Strategy, and International Management at the University of Texas at Dallas.
**Stephen Guisinger is Professor of International Management Studies at the University of Texas at Dallas, where he also serves as Chairman, Joint Center for China-U.S. Management Studies.
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Li, J., Guisinger, S. Comparative Business Failures of Foreign-Controlled Firms in the United States. J Int Bus Stud 22, 209–224 (1991). https://doi.org/10.1057/palgrave.jibs.8490300
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DOI: https://doi.org/10.1057/palgrave.jibs.8490300