The interactive effect of time and host country location on Chinese MNCs’ performance: An empirical investigation

Lin Yuan, Nitin Pangarkar and Jie Wu

Journal of World Business, 2016, vol. 51, issue 2, 331-342

Abstract: We explore the performance implications of location choices Chinese multinational corporations (MNCs) make. Drawing on internalization and organizational learning theories, we find that developing country MNCs entering other developing countries experience a positive effect on their performance in the immediate term that, however, erodes over time because of the decay in their initial internalized advantages. Conversely, MNCs entering developed countries experience a negative effect on their immediate-term performance but a boost in performance over time because of the gradual realization of learning benefits. Our analyses of internationalization and performance of 207 Chinese-listed MNCs between 1992 and 2005 corroborate our key predictions.

Keywords: Internationalization; Location choice; Internalization; Organizational learning (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (13)

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DOI: 10.1016/j.jwb.2015.11.006

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