Foreign Subsidiary Performance and Home Country Alliance Experience

 

Time：June 11th (Thursday) 10am -12noon

Location: Zhifuxuan, National School of Development, Peking U.

Speaker: Linda (C.H.A.) Rademaker, Center for Innovation Research and Department of Management, Tilburg University

 

 

Abstract：

While many of the difficulties associated with early internationalization have been studied extensively in the international business and strategy literatures, the ways in which these issues can be mitigated have received significantly less attention. In particular, very little is known about how firms can prepare for international expansion in their home country. At the same time, recent studies have started to investigate the relation between inward and outward foreign direct investment and the ways in which emerging economy firms can learn from foreign partners. This study argues that while emerging economy firms may be eager to invest abroad, some of them may be better off collaborating with foreign firms in their home country first before expanding abroad. Using firm-level data on foreign direct investment into and out of China we demonstrate the ways and circumstances under which domestic joint venture experience with foreign multinationals can increase foreign venture success.