Decision Specific Experience in Foreign Ownership and Establishment Strategies: Evidence from Japanese Firms

Prasad Padmanabhan and Kang Rae Cho
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Prasad Padmanabhan: San Diego State University
Kang Rae Cho: University of Colorado at Denver and National University of Singapore

Journal of International Business Studies, 1999, vol. 30, issue 1, 25-41

Abstract: In this paper, we examine the importance of decision specific experience for a multinational firm's foreign ownership structure and establishment mode decisions. A unique procedure to measure the decision specific experience construct is developed. Based on data for the period 1969–1991, we find strong empirical evidence from experiences of Japanese firms to support the hypotheses that firms tend to select ownership structures and establishment modes based on their experiences with similar ownership structures and establishment modes in the past.© 1999 JIBS. Journal of International Business Studies (1999) 30, 25–41

Date: 1999
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