 Experience, environment, and subsidiary performance in high-tech MNEsWann-Yih Wu and Ching-Yi Lin Journal of Business Research, 2010, vol. 63, issue 12, 1301-1309 Abstract: This study investigates an inverted U-shaped relationship between host country experience and subsidiary performance, and further explores the contingent relationship of host country experience and subsidiary performance under industrial and environmental contexts. In examining a sample of the 1596 Taiwan's electronics MNEs, this study finds that host country experience shows an inverted U-shaped effect on subsidiary profitability. When considering the industry similarity, this result demonstrates that the host country experience has stronger diminishing marginal returns on a focal subsidiary profitability in similar industries at high levels of experience. This study further examines the interaction effect of environmental contexts and host country experience on subsidiary profitability in similar industries, the results shows that the interaction effect of environmental difficulties and host country experience positively impacts subsidiary profitability, while the interaction effect of cultural distance and host country experience insignificantly affects on subsidiary profitability. Keywords: Host; country; experience; Subsidiary; performance; Industry; similarity; Environmental; difficulties; Cultural; distance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:63:y:2010:i:12:p:1301-1309 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.