Contextualizing experience effects in international business: A study of ownership strategies

Peng-Yu Li and Klaus Meyer

Journal of World Business, 2009, vol. 44, issue 4, 370-382

Abstract: Experienced firms act differently than newcomers, yet such differences vary with the context and with the type of experience. This research examines the effects of international experience on multinational enterprises' (MNEs') ownership strategy across a range of developed and developing economies. We distinguish competence-building and partner-selection effects of experience, which vary between general international experience and country-specific experience, and across host contexts. This contextualization of the theoretical arguments suggests that the predicted effects hold in some host countries, but not in others. In support of these arguments, our empirical study of subsidiaries of Taiwanese electronics forms finds that general international experience facilitates wholly owned operations in developed economies in Asia and Europe, while country-specific experience facilitates joint ownership in China.

Keywords: International; experience; Country-specific; experience; Ownership; strategy; Emerging; economies (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (33)

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