What Determined Success During the Asian Economic Crisis?—The Importance of Experiential Knowledge and Group Affiliation

Hui-mei Wang (), Hengchiang Huang () and Pratima Bansal ()

Asia Pacific Journal of Management, 2005, vol. 22, issue 1, 89-106

Abstract: This study investigated the factors that determined the change in firm performance during the Asian economic crisis. Applying a process-oriented resource-based view and MNC network theory, we argued that host country experience, industry experience, subsidiary experience, and group affiliation would influence subsidiary performance during an economic crisis. By testing the hypotheses on a sample of 1128 Japanese subsidiaries in Thailand, Indonesia, Malaysia, and Korea, we found that, among different knowledge resources that the MNC accumulated in its internationalization process, subsidiary experiential knowledge was most significant in picking the winners from the losers during the crisis. Keiretsu affiliation and the parent firm’s industry experience were also significant, positive factors for firms remaining profitable or even better after the crisis. However, firm size and industry effects were not related to performance. Copyright Springer Science + Business Media, Inc. 2005

Keywords: knowledge resource; keiretsu; Asian economic crisis; MNC (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:kap:asiapa:v:22:y:2005:i:1:p:89-106

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DOI: 10.1007/s10490-005-6419-3

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